Saudi Arabia’s Ades Holding Co. continues its regional expansion with the sealing of two contracts valued at SR511 million ($136.2 million), further solidifying its presence in the oil and gas sector.
Specializing in drilling and intervention services, Ades has inked a contract worth up to SR350 million with Total Energies to operate an offshore drilling platform in Qatar. The agreement, disclosed in a bourse filing, includes a mandatory one-year period with an option to extend for an additional 18 months. Operations are set to commence in the latter half of 2024, with the company emphasizing the absence of related parties in the contract.
This latest contract follows Ades’ previous announcement in April, where it secured the responsibility to operate another offshore drilling platform for Total Energies in Qatar. With this addition, Ades now operates three drilling platforms in the region, underscoring its robust market presence.
The company’s expansion drive also includes a 21-month contract to operate an elevated platform in the Gulf of Suez, Egypt. Awarded by the Suez Oil Co. (SUCO), the contract, valued at SR161 million, is expected to commence operations in the coming weeks.
This new engagement in Egypt is part of Ades’s broader strategy to reactivate its operations regionally. It follows recent contracts in Thailand and Qatar, bringing the total number of reactivated platforms to three out of the five recently suspended in Saudi Arabia.
Despite these positive developments, the publicly traded company witnessed a slight decrease in its stock price following the announcements. However, Ades remains focused on its expansion efforts, leveraging strategic partnerships and operational excellence to strengthen its foothold in the oil and gas industry.
