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Middle East drilling contractor ADES confident despite current crisis

ADES
Posted: April 10, 2020 at 9:20 pm   /   by   /   comments (0)

Drilling contractor ADES International is confident of maintaining its current operations and existing business in the Middle East North Africa region, despite the COVID-19 pandemic and market volatility caused by the current oil price.

Drilling contractor ADES International is confident of maintaining its current operations and existing business in the Middle East North Africa (MENA) region, despite the COVID-19 pandemic and market volatility caused by the current oil price.

The company, which operates a fleet that includes jackups, a MOPU, barge and land rigs, has cash reserves of around $120 million and undrawn banking facilities of close to $100 million as at Dec. 31, 2019.

Its rigs are contracted at fixed daily rates with most already calibrated during a low point of the oil price cycle.

Although the coronavirus has not significantly impacted ADES’ drilling activities to date, the company is monitoring the situation and has implemented health and safety protocols and business continuity plans to mitigate risks.

Most of its rigs are staffed locally, so current restrictions on mobility should not significantly impact operations. And due to the essential role of the oil and gas industry for the MENA region, management believes governments across the region are unlikely to impose further restrictions on the group’s operations.

(Source: Offshore)

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