ADES Holding Secures $94 Million Offshore Drilling Contract in Thailand

Saudi-based ADES Holding Company, a leading oil and gas drilling contractor, has signed a $94.39 million offshore drilling services contract with Thailand's PTTEP Energy Development Company to operate a modern jack-up drilling rig in the Gulf of Thailand, marking the company's expansion into the Southeast Asian market and highlighting the growing importance of the region in the global oil and gas industry." This description focuses on the primary topic of the article (the contract signing), the main entities involved (ADES Holding Company and PTTEP Energy Development Company), the context (the global oil and gas industry and Southeast Asia), and the significant action (the contract signing and its implications for the industry). The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as the type of drilling rig and the location of the operation.

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ADES Holding Secures $94 Million Offshore Drilling Contract in Thailand

ADES Holding Secures $94 Million Offshore Drilling Contract in Thailand

ADES Holding Company, a Saudi oil and gas drilling contractor, has signed a significant offshore drilling services contract with Thailand's PTTEP Energy Development Company, valued at $94.39 million. The 18-month contract, with an option to extend for an additional 9 months, is set to commence in the second half of 2024.

Why this matters: This contract highlights the growing importance of Southeast Asia in the global oil and gas industry, with ADES Holding's expansion into the region underscoring the increasing demand for energy resources. The deal also demonstrates the company's ability to adapt to changing market conditions, which could have implications for the industry's future growth and development.

The contract, signed on May 14, 2024, follows a letter of intent (LOI) agreed upon by the companies in March 2024. Under the agreement, ADES Holding will operate one of its modern jack-up drilling rigs in the Gulf of Thailand to support PTTEP's exploration and production activities.

Mohamed Farouk, CEO of ADES Holding, expressed his enthusiasm about the new partnership, stating, "The award by PTTEP reflects the confidence placed in our best-in-class drilling services and our modern jack-up fleet. We are excited about the opportunity to establish a relationship with such an important client and are fully prepared to meet and exceed their expectations in the Gulf of Thailand."

This contract marks ADES Holding's second rig in the Southeast Asian market, reaffirming the company's pursuit of diversified growth opportunities in new markets. The agreement highlights ADES Holding's ability to provide tailored solutions for clients worldwide.

ADES Holding Company has been expanding its presence in the oil and gas industry, with its net profits surging to SAR 200.84 million in the first quarter of 2024, up from SAR 89.41 million in the same period last year. The company's strong financial performance and growing international footprint position it well for future growth opportunities.

The $94.39 million offshore drilling services contract with PTTEP Energy Development Company in Thailand is a significant milestone for ADES Holding Company. With an 18-month firm term and a 9-month extension option, the contract is set to commence in the second half of 2024, utilizing one of ADES Holding's modern jack-up drilling rigs in the Gulf of Thailand.

Key Takeaways

  • ADES Holding signs $94.39m offshore drilling contract with PTTEP in Thailand.
  • 18-month contract with 9-month extension option, starting H2 2024.
  • ADES to operate modern jack-up rig in Gulf of Thailand for PTTEP.
  • This is ADES' second rig in Southeast Asia, marking regional expansion.
  • Contract demonstrates ADES' adaptability and growth in new markets.