ADES International Holding has agreed to acquire three jackups from Nabors Drilling International II that are currently operating offshore the Arabian Peninsula for a major national oil company.
The transaction is valued at $83 million, payable in a combination of cash and ADES shares. Terms also allow for the existing drilling contracts associated with the rigs to be transferred to ADES.
ADES in turn expects to add around $60 million annually to its revenue as a result of the deal, which is set to close in 1Q 2018.
The three ultra-shallow water drilling rigs have each been in continuous service for more than 10 years, and are among the most in-demand assets in the region, ADES claims.
Recently all three underwent refurbishment, with five-year inspections already implemented on two rigs while the third should follow suit in 2018.
On completion, the transaction will raise the number of ADES rigs under contract in the region to six.
ADES and Nabors also plan to jointly pursue integration and automation technology initiatives developed by Nabors Drilling Solutions and Canrig offshore the Middle East and elsewhere. These include automating rig surface and downhole activities.
The two companies plan to establish a technical, operational, and commercial taskforce with the aim of promoting Nabors’ various capabilities across the region using ADES rigs.
In addition, ADES is closing on a further deal to acquire two stacked offshore jackups from Nabors, contingent on the award of certain drilling contracts.