Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

ADES International extends key rig contracts in Gulf of Suez

"Our ability to successfully extend and renew existing contracts with high-profile clients underlines the superiority of ADES' services and its exemplary safety record,” said Dr Mohamed Farouk, ADES chief executive
oil and gas operations
The two rigs will remain in service

Oil and gas services group ADES International Holding Ltd (LON:ADES) told investors it has successfully extended two existing rig contracts in the Gulf of Suez area.

The contracts for the Admarine II and Admarine IV rigs are with the Gulf of Suez Petroleum Company (GUPCO), a joint venture between BP Plc (LON:BP) and the Egyptian General Petroleum Company, was due to expire at the end of 2017.

READ: ADES International inks rig acquisition deal with Nabors

ADES said that the contracts are broadly in line with historical rates and serve as a prelude to finalising their renewals, and it added that the renewal of the VI lease will secure multi-million dollar revenue streams for ADES for the next two years.

The IV contract was due to expire at the end of December and it has been extended for six months, meanwhile. ADES anticipates that it will sign a fifth consecutive lease agreement with GUPCO for the rig in the coming months.

Meanwhile, the VI rig contract was due to expire in March and it will now be renewed for two years.

"Our ability to successfully extend and renew existing contracts with high-profile clients underlines the superiority of ADES' services and its exemplary safety record,” said Dr Mohamed Farouk, ADES chief executive.

READ: ADES International says bidding activity remains strong as it reports a 34% jump in nine month revenues

“Securing these new awards is directly in line with our growth strategy and allows us to deliver on one of our primary pillars, namely the continued build-up of our backlog."

He added: “The renewals are also another vote of confidence for ADES at an opportune moment when the Egyptian government has announced plans to open up new areas for oil exploration in the Red Sea.

“ADES hopes to leverage its position as a leading oil and gas services provider in Egypt to maintain existing relationships as well as develop new ones and scale-up operations in its home country's ever-expanding oil and gas industry."

View full ADES profile View Profile

ADES International Holding Ltd Timeline

Related Articles

rig
July 12 2018
Rig prices can soar when exploration activity picks up

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use