ADES Arabia Holding, a leading global oil & gas drilling and production services provider, announces the closing of the acquisition of seven premium offshore rigs in Saudi Arabia from Seadrill Limited (“Seadrill”) following the fulfillment of the Conditions Precedent agreed upon in the Sales and Purchase Agreement (“SPA”) signed in early September.
- The total consideration for the acquisitions of the seven jack-up rigs is US$ 628 million in cash, subject to adjustment for working capital and other items.
- Four of the new rigs are currently contracted and operating in the Kingdom. The remaining three rigs have been recently awarded contracts in the Kingdom, and operations are expected to begin in the first half of 2023.
- With the successful completion of this acquisition, the Company’s contracted offshore fleet in Saudi Arabia reaches 33 rigs, further consolidating ADES’ position as the largest jack-up operator in the Kingdom. Coupled with the 11 operating onshore rigs in Saudi Arabia, this bring ADES’ total fleet in the Kingdom to 44 rigs.
- The addition of the seven offshore rigs takes ADES’s total offshore fleet to 48 rigs, making the Group the largest jack-up operator in the world.
The closing of this latest deal builds on the multiple acquisitions and contract awards secured by the Company in the Kingdom over the last twelve months. On this front, back in November 2021, ADES acquired four operational offshore rigs in Saudi Arabia from Noble Corporation plc. Meanwhile, earlier this year, ADES secured new contract awards for 16 jack-ups rigs in the Kingdom further highlighting its hard work in delivering operational excellence, robust safety records, as well as great understanding of its clients’ evolving needs during the past several years. Recent expansions in the Kingdom are expected to bring the Group’s total backlog as at year-end 2022 to c. US$ 6 billion.
Commenting on the acquisition, Dr. Mohamed Farouk, Chief Executive Officer of ADES Arabia Holding, stated: “Strategic acquisitions such as this are fully aligned with the Group’s long-term growth strategy in Saudi Arabia and the Kingdom’s 2030 Vision. The transaction will enable us to create more jobs for Saudi nationals, retain hard currency in the Kingdom and, most importantly, continue to deliver on our Saudization strategy, in line with the shared vision of ADES and our partners at the Public Investment Fund (“PIF”) and Al Zamil Group. As the largest offshore operator in the country, we are well placed to continue expanding the Company’s Saudi Arabian business, as we look to foster an already strong relationship with our partners in the Kingdom and generate new value for Saudi Arabia’s people and economy.”
ADES’s fleet now encompasses a total of 84 onshore and offshore rigs across six strategic markets including Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, and Tunisia. In line with the Company’s global ambitions, in the coming months, ADES will add yet another high-potential market to its footprint when it enters the Indian market as part of its most recent award in the country.
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