ADES jack-up’s new five-year drilling campaign in Asia marks fourth suspended rig deployment

Following a recent suspension of operations in the Middle East, ADES Holding Company, part of Saudi Arabia-headquartered ADES Group, has landed a new multi-year drilling assignment for its jack-up rig with Thailand’s national oil and gas company PTT Exploration and Production (PTTEP).

After boosting its total redeployment level of the recently suspended rigs in Saudi Arabia to three out of five jack-ups, thanks to drilling campaigns in Qatar, Thailand, and Egypt, ADES confirmed its fourth redeployment, which was secured via a letter of award (LOA) in Thailand. Since two identical rigs will be operating in the Gulf of Thailand and eight across the region, including three in India, the company believes this will enable it to achieve greater operational efficiency and scale.

Dr. Mohamed Farouk, CEO of ADES Holding, commented: “We are honored to receive this second award from PTTEP, which reflects their continued confidence in ADES’ operational excellence and safety performance following the successful startup of Admarine 502 earlier this year. We are thrilled to deepen our collaboration with PTTEP as part of their extensive development plans to meet the country’s energy needs.”

“Securing a 5+3 year contract in Thailand, a region traditionally known for shorter tenors, provides long-term visibility and enhances our regional hub. With five jackups in Southeast Asia and three jackups in India, we are gradually growing our market share in the region while increasing synergies across our operations, reinforcing ADES’ long-term strategic commitment to the region.”

With an estimated backlog of SAR 1.035 billion (around $275.61 million), the contract for an offshore jack-up rig to undertake drilling activities in the Gulf of Thailand is for a five-year firm period plus an optional three-year extension. The rig’s new job will begin in the second half of 2025.

“Finally, this award is testament to the agility of the Group and the strength of its global platform as it quickly redeployed four of its suspended rigs in Saudi Arabia in a short period, allowing us to confidently reaffirm our previously stated guidance for ADES’ strong full-year financial performance,” Farouk added.

This assignment in Asia will see the deployment of the Admarine 503 premium jack-up rig with offline capabilities tailored for factory-style drilling operations suited to the Gulf of Thailand. This is a sister rig to the Admarine 502 unit, which began operations in Thailand during the third quarter of 2024.

ADES highlighted: “This milestone represents the deployment of the fourth rig from the suspended jack-ups in Saudi Arabia, underscoring ADES’ agility in addressing market demand and capitalizing on its global platform to quickly redeploy suspended rigs in record time.

“The new LOA further strengthens ADES’ position in Southeast Asia with five jack-up rigs under contract in the region – including two in Thailand, two in Indonesia, and one in the Malaysia-Thailand Joint Development Area (JDA) – bringing its market share to ~12% (excluding the three rigs operating in India).”

PTTEP is actively seeking ways to expand its hydrocarbon resources in Thailand and elsewhere, as confirmed by a trifecta of oil and gas discoveries offshore Malaysia in 2023. The Thai player’s plan for the 2025–2029 period entails an investment of $33.58 billion to bolster its exploration and production (E&P) business and propel decarbonization forward.

Two rigs from Vantage Holdings International, a subsidiary of Vantage Drilling International, recently moved to ADES’ fleet, bolstering the former’s managed services.