ADES acquires three Nabors rigs

Dec. 20, 2017
ADES International Holding Ltd. signed a purchase and sale agreement with Nabors Drilling International II Ltd., a subsidiary of Nabors Industries Ltd., to acquire three operating offshore jack up rigs currently contracted in the Persian Gulf.

ADES International Holding Ltd. signed a purchase and sale agreement with Nabors Drilling International II Ltd., a subsidiary of Nabors Industries Ltd., to acquire three operating offshore jack up rigs currently contracted in the Persian Gulf.

The agreement is for $83 million, payable in cash and ADES stock. Terms also call for the existing drilling contracts associated with the rigs to be transferred to ADES. Closing is expected in early 2018, subject to renewal of existing multiyear contract terms.

The drilling units being acquired are three ultra-shallow rigs that have been in continuous service for more than 10 years. They were recently refurbished, with 5-year inspections already done on two rigs. Inspection on the third rig is scheduled for 2018.

After closing, ADES will have six rigs under contract in the gulf. In addition, ADES said it is finalizing another agreement with Nabors to acquire two stacked offshore jack ups in a similar cash-and-stock deal, contingent on the awarding of specified drilling contracts.

The names of the rigs were not disclosed but offshore rig broker Bassoe Offshore said the three rigs in the first announcement were most likely rigs that Nabors currently has on contract with Saudi Aramco: the Nabors 655, 656, and 657.

David Carter Shinn of Bassoe added that the two stacked rigs under negotiation in a separate deal are likely Nabors 659 and Nabors 660.