Rig contractor ADES International Holding PLC (LON:ADES), which is set to be acquired by Saudi Arabia’s sovereign wealth fund, today announced renewals for seven rigs under contract in the country.

Four rigs are tied up for an additional 10 years, two are extended for 5 years and one will run for another 3 years.

“We are extremely pleased to secure such substantial amount of backlog with one of our largest clients and an almost doubling of our backlog figure from FY20,” said chief executive Dr Mohamed Farouk.

The company said that the total backlog is now estimated at US$950mln with daily rates being broadly similar to current contracts.

In March, the Middle East drilling group announced it had agreed to be taken private by a consortium including Saudi Arabia’s sovereign wealth fund in a deal worth US$516mln.

The recommended US$12.50 a share offer represents a 40% premium to the previous night’s closing price and was worth 36% more than the volume-weighted average price over the last 30 days.

The bid has been tabled by newly formed Innovative Energy, which is jointly owned by 64% shareholder ADES Investments, Saudi’s Public Investment Fund and Zamil Group.

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