Thursday 13 June 2024

ADES unit secures $645m Kuwait Oil Company contracts

KUWAIT, 17 days ago

ADES Holding Company, a leading oil and gas drilling services provider, has announced that one of its key subsidiaries has secured onshore contracts from Kuwait Oil Company (KOC) for four of the company’s current operating rigs in Kuwait as well as two newbuild units. 
The total estimated backlog for the award is SAR2.42 billion ($645 million), including both firm and optional periods.
All contracts under the award are expected to commence during the second and third quarters of 2025 and will run for a five-year firm term with a one-year optional extension.
According to ADES, all six contracts are for deep drilling rigs in the 3,000hp category, a particularly niche and growing market in Kuwait.
This contract award marks a three-fold increase in ADES’ contracted fleet with Kuwait Oil Company over a 24-month period, rising from four rigs in early 2023 to a total of 12 rigs expected to be operating in Kuwait by 2025. Currently the group has 10 onshore rigs operating with KOC in Kuwait.
On the contract win, CEO Dr Mohamed Farouk said: "We are very pleased with KOC’s vote of confidence in ADES as exemplified in the scope and tenor of this award. Securing such long-term contracts not only adds to the sustainability of our backlog and visibility of our business, but are also testament to ADES’ exceptional safety and operational performance which will see us triple the size of our contracted fleet in Kuwait from four to 12 rigs upon deployment in 2025."
"With these new awards, ADES has further solidified its position in the niche Kuwaiti onshore market, characterized by high barriers to entry and deep drilling deployments where ADES has consistently
proven its abilities," he added.-TradeArabia News Service


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