ADES Buys Two Jack-Ups from Vantage Drilling in $190M Deal
September 9, 2024
Saudi oil and gas driller ADES Holding has acquired two premium jack-up drilling rigs from Vantage Drilling, contracted in Southeast Asia, for $190 million.
The transaction encompasses the direct asset acquisition of the Topaz jack-up rig, contracted in the Malaysia-Thailand Joint Development Area (JDA), marking ADES' entry into its 10th country of operation.
Additionally, ADES will acquire the shares of Rig Finance (RFL), the owning entity of the Soehanah jack-up rig in Indonesia. The addition of these two new rigs will enhance ADES' fleet in the India and SEA region, expanding its operations to seven jack-up rigs across Indonesia, Thailand, and India.
In addition, in accordance to the purchase agreements, at the closing of the transactions, subsidiaries of Vantage and ADES will enter into a management agreement for each of the Soehanah and the Topaz Driller, pursuant to which such subsidiaries will provide management services to ADES in respect of the two rigs each for three years.
“This acquisition marks a significant milestone for ADES as we continue to expand our footprint in Southeast Asia, a region where we see tremendous growth potential. By acquiring these premium jack-up rigs, we are not only enhancing our fleet but also entering a new, important market in the Malaysia-Thailand Joint Development Area.
“This transaction further solidifies our relationship with Vantage Drilling, building on our history of successful partnerships. The attractive valuation of this acquisition reflects our disciplined approach to capital allocation and our ability to capitalize on market opportunities,” said Mohamed Farouk, CEO of ADES Holding.
“We are very pleased to continue to expand our Global Strategic Alliance agreement with ADES, leveraging our history of collaboration in Egypt and Qatar, by selling our two premium jack-up rigs in Southeast Asia and entering into a management services agreement for each rig for three years.
“The transaction will expand our management services platform, further strengthen our balance sheet and will provide Vantage with important financial flexibility.
“The sale of this business does not end our involvement in operating these jack-up rigs as we will continue to manage the operations of the two rigs for three years,” added Ihab Toma, Vantage’s Chief Executive Officer.
