Saudi-listed ADES Holding Company has extended a contract for its standard jack-up offshore platform in Saudi Arabia.

The total contract value is estimated at 1.31 billion Saudi riyals ($351 million), the company said in a statement to the Saudi stock exchange on Thursday.

The 10-year extension contract for the Admarine 657 drilling rig with a  “major National Oil Company” will be effective from the first quarter of 2024 following the expiry of the current agreement.

The extension comes at a time when the offshore jackup market is witnessing severe tightness, said ADES CEO Mohamed Farouq.

The 10-year extension adds a considerable amount of backlog, which further supports future revenue growth and extends backlog visibility in line with the group’s strategy, he added.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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