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ADES International Holding PLC

ADES International completes Saudi Arabia rig purchases from Weatherford

The Saudi-based rigs cost US$92.5mln with nine currently under contract and an order backlog of US$78mln

rig workers
Weatherford's 31 rigs are based onshore

ADES International Holding Ltd (LON:ADES) has completed the acquisition of eleven oil and gas rigs located in Saudi Arabia from US firm Weatherford International.

In July, ADES agreed to pay Weatherford a total of $287.5mln for 31 rigs, eleven of which are in Saudi, twelve in Kuwait, two in Southern Iraq and six in Algeria.

READ: ADES International's valuation gap 'hard to justify'

The Saudi-based rigs cost US$92.5mln with nine currently under contra ct and an order backlog of US$78mln.

ADES expects to add new contracts and extensions by the end of the year.

Completion on the six Weatherford rigs in Algeria is also scheduled by the end of 2018.

Mohamed Farouk, ADES’ chief executive, added: “We have now completed the majority of the Weatherford acquisition, which is transformational for the group, significantly increasing our size, visibility and exposure in the onshore market.

"We are also particularly pleased to be deepening ADES' presence in KSA and strengthening our relationship with our strategic customer there who continues to place their confidence in us.”

Quick facts: ADES International Holding PLC

Price: $13.75

Market: LSE
Market Cap: $602.17 m
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