Saudi Arabian energy company, ADES Holding, has secured a drilling contract in Nigeria’s offshore oil and gas sector.
The announcement was made in a statement by the company on Monday, as reported by Zawya, a UK-based publication.
The deal is valued at approximately $21.8 million, and will include other players within the value chain.
This contract marks ADES’s entry into West Africa, with its subsidiary jackup rig, Admarine 504, being awarded the project by Brittania-U, an integrated energy company operating across the oil and gas value chain.
According to ADES, the move aligns with its strategy to diversify its operations across Africa and Asia as part of its global expansion plans.
Admarine 504 is scheduled to be mobilized from the Middle East to West Africa in the first quarter (Q1) of 2025, with operations expected to begin in the second quarter (Q2) of the same year.
The contract includes drilling and completing six wells over an estimated duration of 365 days.
Meanwhile, ADES will collaborate with Valiant Offshore Contractors Limited to operate the rig.
What the Company is Saying
Speaking on the investment, the CEO of ADES Holding highlighted the significance of the deal in capitalizing on emerging opportunities in Nigeria’s undersupplied market.
He noted that the group has also secured new awards for four of five previously suspended rigs in record time.
“This award is an important milestone in our global expansion journey, with West Africa and Southeast Asia together representing key growth geographies for ADES as we diversify our geographical footprint and capitalize on emerging opportunities in these undersupplied markets.
“The group has successfully secured new awards for four of the five previously suspended rigs in record time, and we are confident in the Group’s ability to redeploy the remaining rig during the year,” Farouk added.
Investment in Nigeria’s offshore activities
Nigeria’s offshore oil sector has witnessed a steady increase in investments, driven by government-provided incentives aimed at boosting operations in the industry.
Following his inauguration, President Bola Tinubu signed three executive orders designed to create a conducive environment for investors and major operators in the country’s deepwater oil sector.
In response, Shell Nigeria Exploration and Production Company (SNEPCo), a key player in the industry, announced a $5 billion investment in the Bonga North deepwater project.
Similarly, Seplat Energy disclosed plans to revive several abandoned oil wells, a move expected to contribute an additional 100,000 barrels of crude oil per day to Nigeria’s production.
ExxonMobil, while scaling back its onshore operations, revealed plans to invest $10 billion in the country’s offshore operations during the second quarter of the year.
To further stimulate growth, the Nigerian government introduced various incentives for offshore oil production, including tax credits and exemptions. These measures aim to help the country achieve its production target of 2.6 million barrels per day by 2025.
