ADES Holding completes acquisition of Shelf Drilling

Saudi Arabia-headquartered ADES Holding has completed its acquisition of Shelf Drilling through a cash merger, reinforcing its position as a global leader in offshore drilling

With a combined fleet of 83 offshore units (46 premium units) and 40 onshore rigs, now operating across 19 countries - up from 13 previously - ADES is now one of the broadest and most geographically diversified offshore drilling platforms in the world, with operations now spanning its home market in Saudi Arabia, the GCC, and key growth regions such as Southeast Asia and West Africa.

The enlarged platform will benefit from enhanced commercial reach, improved fleet allocation flexibility, and the consolidation of shared functions across key markets. It is supported by a combined backlog in excess of SAR 34 billion, providing the ability to capture premium market opportunities at scale.

Global marketed jack-up utilisation is currently hovering above 90% prior to the redeployment of several suspended rigs from Saudi Arabia, including the resumption notices received for ADES’ ADM 510 and Shelf’s Harvey H. Ward drilling units. With most of ADES’ existing contracts secured at pre-upturn rates, the combined platform is well positioned to benefit from improving market conditions, allowing natural margin expansion as contracts renew at higher rates.

In line with its strategy, ADES will seek to optimise the combined Group’s capital structure, leveraging the strength of its enlarged balance sheet and robust cash-flow generation.

Dr. Mohamed Farouk, CEO of ADES Holding, said, 'This is a defining moment for ADES. By completing this landmark transaction, we have cemented our position as the world’s leading offshore drilling company, with the scale, fleet quality and geographic reach to serve clients across the world’s most attractive basins. With 123 rigs and a backlog of over SAR 34 billion1 , we have built a powerhouse platform with commercial strength and long-term earnings capacity.

“We are delighted to welcome the Shelf Drilling team into the ADES family as we continue building a unified organisation rooted in safety, performance, innovation and partnership.”

Commenting that the acquisition would directly support Saudi Arabia's Vision 2030, he said, “Combining international experience with deep localisation will allow ADES to accelerate knowledge transfer and talent development within the Kingdom, further advancing Saudi Arabia’s long-term energy services capabilities all while generating hard-currency inflows that bolster the national economy.”