ADES has announced that it has successfully renewed the term of six drilling contracts associated with six onshore operating rigs in Saudi Arabia, which were acquired in December 2018.
The renewal term of the drilling contracts for all six rigs is three firm years, commencing in February 2019 upon expiry of the existing contracts. The renewals are expected to add up to $228 million of backlog with dayrates in line with the terms of the existing contracts.
“We are pleased to have secured these important contract term renewals, which grows our current backlog to $1.5 billion,” Dr Mohamed Farouk, Chief Executive of ADES, said. “They further underpin our revenue expectations for 2019 and significantly add to our long-term revenue visibility. The renewals are a further endorsement of our client’s confidence in ADES to consistently deliver a high-quality service, as we scale up our business across the region. They also demonstrate our ability to successfully build value from recent acquisitions.”