ADES renews Saudi Arabia rigs contracts

Feb 25, 2019
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ADES International, a Middle East drilling and production services company, said it has renewed contracts for six onshore operating rigs in Saudi Arabia for three years.

The renewal term of the drilling contracts for all six rigs, acquired in December, start this month, as existing contracts expire. The renewals are expected to add up to US$ 228 million of backlog with day rates in line with the terms of the existing contracts, the company said in a statement.

"We are pleased to have secured these important contract term renewals, which grows our current backlog to around US$ 1.5 billion,” Mohamed Farouk, chief executive of ADES, said. “They further underpin our revenue expectations for 2019 and significantly add to our long-term revenue visibility.”