ADES Holding Company Announces Contracts Update for its Rigs in Saudi Arabia; Reiterates Financial Guidance for 2024

ADES Holding Company Announces Contracts Update for its Rigs in Saudi Arabia; Reiterates Financial Guidance for 2024

Announcement Detail

ADES announces that it has mutually agreed with its client in Saudi Arabia to temporarily suspend operations on 5 from its 33 offshore jack-ups operating in the Kingdom for a period of up to 12 months. One of the suspended rigs will be deployed to the Group’s recently awarded campaign in Thailand that is slated to commence operations in the second half of 2024, while a second rig is poised for another imminent opportunity in the region. The temporary suspensions for the 5 rigs in Saudi Arabia shall be effective seven days from the signing date of the mutually agreed suspension notice, or when the work currently in progress is completed and the drilling unit is released, whichever is later. Additionally, the suspension mechanism offers enough flexibility for the suspended rigs to complete the firm and optional terms of new deployments before resuming work in Saudi Arabia post suspension. Finally, the original term of the suspended contracts will automatically be extended for a period equal to the suspension for each rig, preserving the remaining backlog for the respective contracts. Meanwhile, the new contract award in Thailand and