ADES says Saudi Aramco renews two onshore rigs for 10 years

Saudi Arabia’s ADES received 10-year contract renewals from Saudi Aramco for two onshore rigs in Saudi Arabia, according to an Oct. 13 statement on the Saudi stock exchange Tadawul.

The Riyals 946 million ($252 million) renewals are for rigs ADES 13 and ADES 14, and the contract extension will “commence immediately upon expiry of the rigs’ current firm tenor,” the company said. The two rigs have been operating in Saudi Arabia since 2019, the company said in a statement.

ADES has recently struck deals in Southeast Asia and Kuwait. In Southeast Asia, ADES acquired two jackup rigs worth $190 million from Vantage Drilling International, marking the Saudi energy service company’s entrance into the Malaysia-Thailand joint development area, the company said Sept. 9.

It announced its entrance into Thailand in May after signing a PTT exploration and production contract with the Southeast Asian country’s national oil and gas company.

ADES expanded its foothold in Kuwait, having won six contracts in May. The award covers ADES' four existing operating rigs in Kuwait as well as two newbuild units and will triple ADES’ contracted fleet from four to 12 rigs by 2025, S&P Global Commodity Insights reported at the time. In March, ADES secured a 10-year service agreement to increase production at two brownfield sites in Egypt.

The company operates 49 jackup rigs and 38 land rigs across nine countries, including India, Egypt, and Qatar, according to information on ADES' website.