ADES Holding Company, part of the Saudi-based ADES Group, has secured its first drilling contract in West Africa, marking a significant milestone in its global expansion strategy. The deal involves deploying its Admarine 504 jack-up rig off the coast of Nigeria to execute a year-long drilling project for Brittania-U, a prominent indigenous energy company in Nigeria’s oil and gas sector.
Key Highlights
1. First West African Operation:
• The Nigeria contract represents ADES’ debut in West Africa and its 11th operational territory globally.
• It aligns with ADES’ broader strategy to diversify geographically and capitalize on high-demand, undersupplied regions.
2. Project Details:
• Client: Brittania-U, a fully integrated Nigerian energy firm.
• Scope: Drilling and completing six wells over 365 days starting Q2 2025.
• Value: The charter contract with Valiant Offshore Contractors is estimated at SAR 81.8 million ($21.8 million).
3. Operational Collaboration:
• ADES: Supplies the Admarine 504 rig, senior crew, and management systems under a charter agreement.
• Valiant Offshore Contractors: Responsible for fulfilling drilling obligations under its contract with Brittania-U.
4. Rig Mobilization:
• The Admarine 504 rig will be mobilized from the Middle East to Nigeria in Q1 2025.
• ADES’ flexibility to suspend the rig’s current Saudi operations allows it to redeploy the rig for this Nigerian assignment while retaining the original backlog value.
Dr. Mohamed Farouk, CEO of ADES Holding, emphasized the significance of the contract:
• “West Africa is a high-potential market with growing demand for offshore jack-up rigs, making Nigeria a key growth geography for us.”
• He also highlighted ADES’ ability to leverage flexibility in its operations to secure attractive opportunities while maintaining strong client relationships in its home market, Saudi Arabia.
Expanding Global Reach
ADES has been aggressively expanding beyond its traditional markets in the Middle East:
• Recent expansions include India, Southeast Asia, Qatar, Thailand, and Egypt.
• The company added two rigs from Vantage Drilling to its fleet to enhance its operational capabilities.
Implications for West Africa and Nigeria
This contract underscores Nigeria’s position as a key player in the global energy landscape and highlights the increasing interest of international players like ADES in the region’s abundant oil and gas resources. The project aligns with the Nigerian government’s goals of fostering local partnerships and expanding offshore exploration to boost production and economic growth.
ADES’ entry into West Africa, through this landmark deal with Brittania-U, not only strengthens its global footprint but also signals growing confidence in the region’s oil and gas potential. By bringing its expertise in jack-up rig operations to Nigeria, ADES is well-positioned to seize further opportunities in the region’s evolving energy sector.
