ADES wins two jack-up rig contracts from ONGC worth $117 million

what happened

Saudi offshore driller ADES Holding told the Saudi stock exchange it has secured multi-year contracts for two standard jack-up rigs with India's state-backed ONGC. Each rig is covered by a three-year firm contract, and the total value, including mobilisation fees, comes to about SAR 439.6 million ($117.2 million).

The rigs, Key Singapore and Admarine 10, are due to start work by the end of the first quarter of 2027, once their current campaigns finish in late 2026. ADES said the awards deepen its footprint in India.

The deal comes as New Delhi has earmarked INR 432 billion ($4.6 billion) for an accelerated offshore exploration push, which includes 60 deepwater exploration wells. Officials expect the program to add more than 600 million tonnes of oil equivalent to national reserves.

why it matters

For offshore drillers, long-term contracts with a state oil company provide predictable utilisation and reduce the risk of idle rigs. India's program points to sustained demand for rig capacity in the coming years, although revenue will be spread over three years.

market impact

ADES Holding: new India contracts add to its backlog and support the shares

• ▲ADES Holding shares pressure up — three-year contracts add visible backlog in India

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