ADES announced that it has secured two new contracts for its onshore rigs ADES 2 and ADES 3 in Algeria with Groupement Sonatrach AGIP (GSA).
The ADES 2 contract comprises one firm well and four optional wells, effective from the date of the rig delivery to the operational field, which is expected to take place during Q2 2019. The new contract will add an estimated backlog of $8 million.
The ADES 3 contract was signed for two years firm and one year optional, effective upon expiry of the existing contract in Q3 2019. The new contract will add an estimated backlog of $19 million.
“These new contracts strengthen our position in the strategic Algerian market and are in line with our focus on organic growth following our recent acquisitions,” Dr Mohamed Farouk, Chief Executive of ADES, said. “I am particularly pleased with the resumption of operations at ADES 2, which will add incremental value. We remain confident in our ability to use ADES’ well-distributed asset base to enter into competitive contract bidding across the region and leverage our unutilized rigs.”