ADES extends North Sea rig contract worth up to SAR 832.2M

ADES Holding Co. extended the contract for the drilling rig Shelf Drilling Winner with Tenaz Energy Netherlands B.V. for operations in the Dutch sector of the North Sea.

The contract term was extended from one year to three years, while retaining the same optional extension periods.

The total potential value of the contract, including the new term and the two optional extensions, stands at about SAR 832.24 million ($221.93 million).

In a statement to Tadawul, ADES said the extension will strengthen its confirmed backlog, enhance revenue visibility for the rig, and support continued operations in the Dutch sector of the North Sea.

The company said the extension reflects its disciplined commercial approach and focus on securing work for its fleet amid a market shortage of offshore drilling rigs and limited asset availability to meet demand.

The contract, which began in mid-November 2025, was initially awarded for one year with two optional one-year extensions.

Under the revised agreement, the contract now includes a three-year firm term, while Tenaz retains the right to extend it twice for one additional year each.