RIYADH: Saudi-listed drilling contractor ADES Holding has signed an offshore drilling contract with Indonesia’s PT Pertamina Hulu Mahakam (PHM), extending its commercial presence in Southeast Asia.
The agreement for the Shelf Drilling Perseverance jack-up rig carries a total potential value of approximately SAR173.14 million ($46.17 million). This amount covers both the firm and optional contract periods, including mobilization and demobilization fees, according to the company’s announcement.
Operations Expected to Begin in December
Signed on October 26 and announced on October 27, the contract includes a firm operating period of 406 days, with an additional 30-day option.
The rig is expected to begin the assignment around the end of December 2026, following completion of its current short-term campaign in the region. The optional extension would bring the total operating period to 436 days if exercised.
The announcement did not identify the specific field or drilling program that the rig will support, according to industry publication Splash247.
Agreement Opens New Customer Relationship
ADES said the award establishes a new relationship with PHM, broadening its Southeast Asian customer base and providing a foundation for potential further cooperation in Indonesia.
The company also described the contract as supporting visibility for its international backlog and reflecting continued demand for offshore jack-up drilling capacity. Any additional collaboration would depend on future agreements.
Revenue Contribution Expected Mainly in 2027
In an October 28 interview with Argaam, ADES Chief Executive Officer and Vice Chairman Mohammed Farouk said the Indonesian contract carries an effective daily operating rate of approximately $106,000.
Farouk expects the agreement’s contribution to revenue and cash flow to fall mainly in 2027, with a limited contribution in early 2028. He also said its overall profitability should broadly align with margins generated by the company’s offshore operations.
Award Follows Growth in First-Half Revenue
The Indonesian agreement follows an expansion in ADES’ business during the first half of 2026. The company reported a 49 percent increase in revenue, supported by its acquisition of Shelf Drilling.
Its reported backlog stood at SAR34.67 billion as of June 30, while fleet utilization reached 97.6 percent. The new assignment adds scheduled work for the Shelf Drilling Perseverance as ADES continues developing its international operations.
