Against the backdrop of global energy market volatility, drilling forces from the Middle East are quietly reshaping the industry landscape. Just last month, after announcing the acquisition of Italian giant Saipem's shallow water drilling business in Saudi Arabia for 1.07 billion Saudi riyals, Riyadh based ADES Holding did not stop expanding. This oil and gas drilling service provider recently received good news again, successfully winning two offshore drilling contracts worth approximately 858.3 million Saudi riyals, with operations spanning Nigeria in West Africa and the North Sea in Europe.

Locked in Beihai for two and a half years

In the North Sea of the UK, ADES will face a protracted war. According to the agreement, the company will use the Shelf Drilling Fortress drilling platform to provide services to NEO NEXT+Energy E&P. This contract has a solid foundation and includes two highly certain well locations, with a minimum commitment period of 550 days for the operation. Not only that, the contract also reserves two extension options of at least 275 days each, which means that once the performance is successful, the platform's operating window in the North Sea may exceed two and a half years. The related work is expected to officially start in the fourth quarter of 2026, with a total contract value (including mobilization and decommissioning costs) of nearly 483 million Saudi riyals. It is worth mentioning that this is another important milestone for ADES in the European market, following the renewal of the Dutch Shelf Drilling Winner platform.

Nigeria has been deeply cultivating for two years

Meanwhile, on the west coast of Africa, ADES has further consolidated its market share in Nigeria. The company has reached an agreement with Seplat Energy Producing Nigeria to dispatch the Shelf Drilling Odyssey drilling platform for local operations. The initial term of this contract is two years, and there are two one-year renewal options available. The project is expected to start in the first quarter of 2027, with a total contract value of approximately 375.3 million Saudi riyals. The cost structure already includes mobilization and relocation costs as well as a share from local partners. This is also the second consecutive breakthrough for ADES in the region, following the previous Shell Drilling Victory platform winning the contract in the country, demonstrating the high recognition of its service capabilities by customers.

Global Layout Acceleration Run

The continuous receipt of orders clearly outlines ADES' strategic intentions. On the one hand, by acquiring Saipem assets, the company's strength in Saudi Arabia has greatly increased; On the other hand, by winning high-value contracts in the North Sea and Nigeria, the company is steadily building a long-term order reserve covering key maritime production areas in Europe and Africa. 

ADES stated that these new contracts confirm the strong demand for high-quality offshore drilling services in the market, which will help the company maintain high utilization rates of its fleet and create sustainable value returns for shareholders. With the advancement of the global energy transition period, ADES, which has stable cash flow and diversified regional layout, is occupying an increasingly important position in the international drilling market.Editor/Yang Meiling