Illustration; Source: ADES

Egyptian oil & gas firm books jack-up rig on 21-month drilling gig in Gulf of Suez

ADES Holding Company, part of Saudi Arabia-headquartered oil and gas drilling services provider ADES Group, has secured a new drilling assignment for one of its rigs off the coast of Egypt with Suez Oil Company (SUCO), one of the Egyptian General Petroleum Corporation (EGPC) companies.

Illustration; Source: ADES

While disclosing a direct award of contract (DAC) from Suez Oil Company (SUCO) in Egypt for a jack-up drilling rig in the Gulf of Suez, ADES explained that this 21-month deal is expected to start in the coming weeks. This contract award comes on the heels of the firm’s recently awarded campaigns in Qatar and Thailand, which will begin in the second half of 2024. The contract value for the firm term is approximately SAR 161 million (around $42.93 million).

Thanks to these drilling jobs in Thailand, Qatar, and Egypt, ADES has boosted its total redeployment level of the recently suspended rigs in Saudi Arabia to three out of five jack-ups. The company attributes its ability to redeploy the majority of these suspended rigs in such a short period to its global platform, with a presence across nine of the most attractive drilling markets and “a highly marketable and demanded” fleet of jack-up rigs.

Dr. Mohamed Farouk, CEO of ADES Holding, commented: “We are very excited to strengthen our relationship with SUCO with the deployment of one of our units in the Gulf of Suez. We are also very pleased with the group’s ability to quickly market and secure new campaigns for three out of the five recently suspended rigs in KSA.

“The speed at which the redeployments will occur, just weeks post their temporary suspension, demonstrates our agility, strength of our global platform and our competitive position with a highly marketable and demanded fleet of jackup rigs during very tight market conditions.”

The award in Egypt’s Gulf of Suez comes with an increase in daily rate compared to the firm’s current average rates in Egypt, reflecting the tight market environment for the jack-up industry. ADES claims that this translates into a favorable impact on its overall profitability.