ADES Wins $173.14 Million Indonesian Contract for 406 Days
Key Facts
ADES Holding has signed a contract with PT Pertamina Hulu Mahakam to operate the Shelf Drilling Perseverance jack-up rig in Indonesia, expanding the company's activity in Southeast Asia. The contract is worth about 173.14 million Saudi riyals, equivalent to $46.2 million, Arab News reported. It has a base term of 406 days, with an option to extend for 30 days. The value includes rig mobilization and demobilization fees, according to the published agreement details. Operations are expected to begin near the end of December.
ADES said the award marks the start of a new relationship with PHM and expands its customer base in Southeast Asia. The company added that the agreement could provide a platform for future cooperation in Indonesia. The contract adds operating activity in the Indonesian market to the group's regional presence through the operation of an offshore rig for a local company. The award supports the visibility of the backlog cited by the company while broadening its customer base beyond its existing markets. Arab News quoted the company's disclosure as describing the agreement as a "valuable new relationship" with PHM.
ADES had a backlog of 34.67 billion riyals as of June 30, 2026, while fleet utilization stood at 97.6%, according to first-half results cited by the newspaper. The size of the backlog places the new contract within a large operating portfolio, while the utilization rate reflects fleet activity during the period cited. The company also reported a 49% increase in first-half revenue, supported by its acquisition of Shelf Drilling. ADES operates in 20 countries and has a fleet of 128 units, including 88 offshore units. These figures provide context for the scale of the company's operations and its offshore activity, which includes the Indonesia contract.
In July 2026, ADES signed two other offshore contracts with a combined value of 858.3 million riyals, according to Arab News. They included a contract for the Shelf Drilling Fortress in the British North Sea, with a potential value of 483 million riyals. The Shelf Drilling Odyssey also won a contract with Seplat Energy Producing Nigeria worth 375.3 million riyals. The Indonesia deal follows those two contracts, adding a new award to the group's offshore activity across multiple markets. The Indonesian contract is worth 173.14 million riyals and includes mobilization and demobilization fees.
In trading, ADES shares closed at 16.37 riyals on Oct. 27, compared with a close of 15.32 riyals on Oct. 26, according to EL7 data. The latest session's closing price was above the previous close, though the available data do not establish that the contract announcement was the direct cause of the share move. The available data did not establish the stock's intraday highs or lows on Oct. 27. The contract details, including its base term and extension option, set out the announced terms of the new Indonesia award. Operations are expected to begin near the end of December.