33 jack-up rigs change hands as ADES and Shelf Drilling tie the final merger knot

November 27, 2025, by Melisa Cavcic

ADES International Holding, a subsidiary of ADES Holding Company, which is part of Saudi Arabia-headquartered ADES Group, has put the finishing bow on the merger with the UAE-based Shelf Drilling, augmenting its offshore drilling fleet with 33 more jack-up rigs.

Following the signing of a transaction agreement for the acquisition of all issued and outstanding shares of Shelf Drilling via cash merger of approximately NOK 3.9 billion, or around $380 million, ADES sweetened the offer with a revised cash consideration of NOK 18.50 ($1.88) per share.

Afterward, the shareholders of the UAE player approved the proposed merger with a requisite majority of 99.6% votes cast in favor of the takeover. ADES has now completed its Shelf Drilling acquisition, which it sees as a pivotal step in its transformation, with a combined fleet of 83 offshore units (46 premium units) and 40 onshore rigs, now operating across 19 countries.

Previously, the firm had worked in 13 countries. With this merger completion, the company’s operations now span its home market, the Gulf Cooperation Council (GCC) comprising six Middle Eastern countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – and what it considers to be key growth regions such as Southeast Asia and West Africa.

Dr. Mohamed Farouk, CEO of ADES Holding, noted: “This is a defining moment for ADES. By completing this landmark transaction, we have cemented our position as the world’s leading offshore drilling company, with the scale, fleet quality and geographic reach to serve clients across the world’s most attractive basins. With 123 rigs and a backlog of over SAR 34 billion, we have built a powerhouse platform with commercial strength and long-term earnings capacity.”

The global marketed jack-up utilization is said to currently hover above 90% before the redeployment of several suspended rigs from Saudi Arabia, including the resumption notices received for ADES’ ADM 510 and Shelf’s Harvey H. Ward drilling units. The Saudi player will refinance and settle Shelf Drilling’s outstanding USD notes (2029) and Nordic bonds (2028) before year-end, ensuring a more efficient capital structure and unlocking long-term financing benefits.

Dr. Farouk added:“ADES’ resilience and agility have proven that we can outperform seamlessly across cycles, not just ride an upturn, which is a distinction that truly sets us apart. We deliver tangible shareholder returns today through disciplined growth, dividends, and balance sheet strengthening, while investing for tomorrow to capture the full potential of this business.

“Our proven acquisition playbook de-risks integration and accelerates value creation from day one, ensuring we preserve operational continuity, elevate safety performance, and unlock synergies efficiently. Most importantly, this combination is about people. We are delighted to welcome the Shelf Drilling team into the ADES family as we continue building a unified organization rooted in safety, performance, innovation, and partnership.”

ADES expects to realize $50–60 million in annual operational cost synergies, with gradual realization over the medium term and alongside associated costs to achieve these efficiencies. Those potential savings are perceived to come beyond the day-one interest savings of over $30 million per annum.