ADES Saudi Limited Company, an indirect subsidiary of ADES Holding, has purchased a shipment of five jack-up barges from the Italian company Saipem in Saudi Arabia. This purchase, valued at approximately 3.7 billion Saudi Riyals (equivalent to 987 million dollars), increases ADES's global fleet to 128 units and also aids in expanding the company's activities in Mexico.
Details of the Deal and Its Impact on ADES's Fleet
Saipem has transferred all its shares in its Arabian branch to ADES. This transfer occurred after receiving all necessary approvals and fulfilling the prerequisite conditions. With this transaction, Saipem continues its strategy to focus on deep-water drilling sectors and harsh environments, which are known for their greater complexity and higher added value.
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Dr. Mohammed Farouk, CEO of ADES Holding, commented on the deal: "This purchase allows us to add five operational jack-up barges to our fleet, which have an average age of 10.4 years. These barges align well with our existing fleet and strengthen our presence and operational track record in Saudi Arabia."
Market Status and Future Outlook
The offshore drilling market remains robust, with jack-up rig utilization at around 90 percent and daily rates remaining stable. Tendering activities are also ongoing in our key markets. This is also reflected in the reactivation announcements for all our temporarily suspended rigs in the Gulf Cooperation Council (GCC), which reinforces our confidence in sustained demand in the region.
ADES now operates 128 rigs, including 88 jack-up rigs, of which 51 are high-quality jack-ups, and also has a total of 40 land units. This purchase enables ADES to enter Mexico and expand its international footprint to 21 countries, adding approximately 3.7 billion Saudi Riyals to its backlog.
Dr. Farouk added: "Expanding our fleet and our strong, long-term backlog positions us to capitalize on sustained customer demand and create added value for our shareholders. Today's energy security is not only dependent on hydrocarbon reserves but also on the availability of the necessary rigs for their safe and efficient development."
By expanding its presence in Saudi Arabia while increasing its international scope, ADES significantly contributes to global energy security while continuing to enhance local capabilities and build an internal supply chain, supporting Saudi Arabia's long-term goals under Vision 2030.
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