Saudi oil and gas drilling contractor ADES Holding has signed a $34.4 million agreement with Addax Petroleum, a subsidiary of Sinopec Group, to commence drilling operations in the Gulf of Guinea, offshore Cameroon, Business in Cameroon reports.
This marks the second major offshore drilling deal in the region in the past two weeks, following Subsea7’s multi-million-dollar engagement.
Under the contract, Addax will deploy ADES’ advanced Admarine 510 jack-up drilling rig at its primarily operated fields located offshore Cameroon.
The agreement marks the resumption of significant exploration activities by Addax in Cameroonian waters after years of inactivity.
“This award reflects the growing trust in ADES as a leading provider of offshore drilling services in the region, and we are particularly pleased to be working directly with Addax Petroleum, a reputable operator affiliated with a major national oil company,” said Mohamed Farouk, CEO of ADES Holding.
“The award of this long-term contract reinforces our ability to respond quickly to new opportunities and sustain fleet deployment across our core markets.”
The $34.4 million contract covers a 12-month drilling campaign, including mobilization and demobilization costs.
Additionally, it features two optional six-month extensions, potentially extending the project to 24 months in total.
The drilling project is scheduled to begin in the fourth quarter of 2025, marking ADES’ entry into Cameroon—its 13th operational country globally.
ADES, which operates a robust fleet of 91 drilling platforms, recently expanded into the offshore waters of Nigeria, where it is building capacity for optimized regional operations.
Farouk added that “Cameroon offers a stable operating environment, which complements our broader regional strategy.”
Addax Petroleum is a major oil producer in Cameroon, with its most significant proven reserves located offshore in the Rio del Rey basin.
Between 2011 and 2021, Addax invested $1.221 billion in exploration and production projects across the country, enabling the development of 27 drilled wells and 6 exploration wells, according to government data.
This long-awaited offshore drilling campaign is expected to support Cameroon’s declining oil output—a necessary step for its planned refinery construction.
