ADES International, an oil and gas drilling and production company said it won the bid for two onshore drilling contracts in Saudi Arabia worth about US$150 million.
The company said it will order two new-build onshore rigs that meet the contract specifications for a total cost of up to $45 million. The company sees long-term potential for these assets in the Saudi market.
Each of the secured contracts has a tenure of seven years, with five years fixed and two years optional terms that will add a total estimated backlog of approximately US$150 million, the company said in a statement. Operations are due to commence in the second half of 2019.
“ADES’ reputation for operational excellence and its exemplary safety record allow it to bid for and win competitive tenders across the region,” said Dr. Mohamed Farouk, chief executive officer of ADES International Holding.
“We have leveraged this strength to build a substantial presence in Saudi Arabia’s onshore and offshore markets with long term, secure contracts. Organic growth is in line with our strategy post the recent acquisitions and we expect to generate a strong return on this investment whilst delivering excellent customer service and value for money for our client,” he added.