The agreement covers the operation of the Shelf Drilling Victory rig for an initial period of two years, with options for extension. The contract value, originally estimated at 347.6 million Saudi riyals, translates to approximately $92.7 million at current exchange rates.
The deal includes mobilisation and start-up costs, as well as the participation of a local Nigerian partner, reflecting ongoing efforts to integrate domestic capacity into offshore energy projects.
The latest award adds to ADES’s growing portfolio of contracts in Nigeria, bringing the company’s cumulative offshore project value in the country to an estimated $843.5 million between 2025 and 2026.
Nigeria has become a key market for ADES as it seeks to expand beyond its traditional base in the Middle East. The company entered the Nigerian market in 2025 through a $21.8 million drilling and completion contract with Brittania-U Nigeria Limited. That project involved deploying the Admarine 504 jack-up rig to drill six wells over a one-year period.
Since then, ADES has rapidly scaled its operations. In March 2026, it secured a significantly larger contract, worth up to $729 million, to deploy three jack-up rigs under Nigeria’s Offshore Fields Development Project. That deal was awarded by a West African oil exploration entity linked to the Dangote Group, signalling a major step-up in the company’s regional ambitions.
Taken together, these contracts highlight a steady progression in ADES’ strategy, moving from initial entry-level projects to large-scale, multi-rig offshore developments and longer-term engagements with established operators such as Seplat.
Chief executive Mohamed Farouk said the company’s expansion into Nigeria aligns with its broader international growth strategy, particularly in high-potential offshore markets.
“Those extensions mark an important step following the acquisition of Shelf Drilling, reinforcing our strategic rationale of building a scaled, globally diversified platform with access to leading international markets and clients,” he said.
Farouk added that West Africa remains a priority region for the company as demand for offshore drilling services continues to grow.
“Our expanding international footprint allows us to capture opportunities across high-growth offshore markets like West Africa,” he said.
He noted that ADES is positioning itself to benefit from evolving market conditions, supported by its asset base and operational capabilities.
Source: Africabusinessinsider