ADES Wins 439.6M SAR Dual-Rig Deal With ONGC

Riyadh, Saudi Arabia — ADES Holding Co. has secured two three-year jackup drilling contracts with India’s Oil and Natural Gas Corporation Limited (ONGC), worth approximately 439.6 million SAR (117.2 million USD) combined, including mobilization fees. The awards cover two standard jackup rigs — Key Singapore and Admarine 10 — and add meaningful backlog to ADES’ international platform.

Deal Details

ONGC awarded both contracts on November 5, 2025. Each rig receives a firm three-year term. Operations are expected to begin by the end of Q1 2027, after both rigs complete their existing campaigns by the end of Q4 2026. The combined contract value covers the firm periods of both rigs, inclusive of mobilization fees, totaling approximately 439.6 million SAR.

Why It Matters

• ADES deepens its footprint in India, reinforcing relationships with one of the world’s largest national oil companies.
• The awards reflect tightening jackup utilization across the regional offshore market, which is pushing operators toward longer-term commitments.
• Backlog visibility improves across ADES’ international fleet, reducing near-term revenue uncertainty.
• Both rigs remain active through Q4 2026, with virtually no idle gap before the new contracts begin.

What This Means for Investors

• 439.6 million SAR in firm contract value adds direct, multi-year revenue certainty to ADES’ books.
• The back-to-back deployment structure limits cold-stacking risk and associated costs for both rigs.
• Continued contract wins in India signal that ADES is competing effectively in international markets, not just its core Gulf region.
• Improving jackup market conditions could support additional contract wins or rate improvements when these deals roll off in 2030.

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THE SAUDI STANDARD’S VIEW: ADES LOCKS IN LONG-TERM OFFSHORE REVENUE WITH INDIA PLAY

ADES Holding’s dual-rig award with ONGC is a disciplined, revenue-accretive move that strengthens the company’s international positioning at a time when offshore drilling markets are rewarding operators with proven track records. For Tadawul-listed investors, this deal signals more than a contract win — it reflects a maturing international strategy built on backlog quality and fleet efficiency.

• BACKLOG QUALITY OVER VOLUME

A combined 439.6 million SAR in firm, multi-year contract value represents the kind of revenue certainty that institutional investors consistently price into offshore drillers. The three-year term on each rig minimizes renegotiation risk and locks in cash flow well into 2030. For a company still expanding its international footprint, predictable revenue streams are as strategically valuable as the contracts themselves.

• SEAMLESS TRANSITION ELIMINATES IDLE-RIG DRAG

The near-zero gap between the conclusion of current campaigns and the commencement of ONGC operations reflects deliberate fleet scheduling rather than fortunate timing. Cold-stacking costs — covering maintenance, crew retention, and reactivation — can materially erode margins and are a persistent concern in cyclical drilling markets. This back-to-back deployment structure protects ADES’ unit economics on both rigs simultaneously.

• INDIA EXPOSURE DIVERSIFIES GEOGRAPHIC REVENUE BASE

Deepening a relationship with one of Asia’s largest state-owned energy producers reduces ADES’ concentration risk in the Gulf and positions the company within a market that is structurally committed to expanding domestic offshore production. ONGC’s multi-rig procurement signals sustained demand for capable international operators willing to commit to long-term partnerships. For ADES, this is a reputational and commercial foothold that compounds over time.

• MARKET TIMING SUPPORTS RATE DISCIPLINE

Tightening jackup utilization across regional offshore markets is shifting negotiating leverage toward drillers, creating conditions where operators are increasingly willing to commit to extended terms to secure rig availability. ADES is capturing this pricing environment with structured, long-dated contracts rather than short-cycle spot exposure. When these agreements roll off in 2030, the company will re-enter what may be an even more favorable rate environment with two freshly contracted, well-maintained rigs.

This contract award is consistent with the broader ambition embedded in Vision 2030 to build globally competitive Saudi enterprises in the energy services sector. ADES’ ability to win and execute complex international drilling campaigns against established global competitors demonstrates that Saudi-headquartered operators can anchor their growth strategies beyond the Kingdom’s borders — generating foreign revenues, expanding workforce capabilities, and reinforcing the credibility of the Tadawul as a listing venue for world-class energy companies.