ADES suspends operations on 5 jackups in Saudi Arabia

Advanced Energy Systems (ADES) has mutually agreed with its client in Saudi Arabia to temporarily suspend operations on five of its 33 offshore jackups for up to 12 months. One of the suspended rigs will be deployed to the group’s recently awarded campaign in Thailand, with operations set for the second half of 2024. A second rig is poised for another imminent opportunity in the region.

The temporary suspensions for the five rigs in Saudi Arabia shall be effective seven days from the signing date of the mutually agreed suspension notice, or when the work currently in progress is completed and the drilling unit is released. Additionally, the suspension mechanism offers enough flexibility for the suspended rigs to complete the firm and optional terms of new deployments before resuming work in Saudi Arabia post-suspension. Finally, the original term of the suspended contracts will automatically be extended for a period equal to the suspension for each rig, preserving the remaining backlog for the respective contracts.

“We remain in active and healthy discussions with our major client in Saudi Arabia following the latest developments in the Saudi market as we continue to demonstrate agility with a client-centric approach – aligning with our client’s strategic needs and objectives – and while preserving the remaining backlog of the temporary suspended contracts,” said Mohamed Farouk, CEO of ADES.