ADES International renews contract for six onshore rigs in Saudi Arabia

Oil and gas rigs supplier ADES International Holding has renewed the contracts associated with six onshore operating rigs in Saudi Arabia, which were acquired in December 2018.

The renewal term of the drilling contracts for all six rigs is three years, commencing in February 2019 upon expiry of the existing contracts, the company said in a statement on the London Stock Exchange.

The renewals are expected to add up to $228 million of backlog with day rates in line with the terms of the existing contracts.

"We are pleased to have secured these important contract term renewals, which grows our current backlog to $1.5 billion. They further underpin our revenue expectations for 2019 and significantly add to our long-term revenue visibility,” Dr. Mohamed Farouk, CEO of ADES, said.