11th Oct 2019 09:30
(Alliance News) - ADES International Holding PLC on Friday said it has signed a contract for a second deepwater drilling campaign in Egypt with an undisclosed oil company.
The drilling and production services provider explained the contract was signed for deepwater drilling in the Egyptian Mediterranean area, and ADES will use Vantage Drilling Co's Tungsten Explorer rig.
The campaign covers one firm well, Nigma 1, ADES said, with the contract estimated to last 73 days.
The services will be subcontracted to ADVantage, a joint venture between ADES and Vantage, leveraging ADES's pre-qualification for operations in the Mediterranean basin.
The contract will operate on a profit-sharing basis, enabling ADES to generate additional revenue without incurring the significant capital expenditures normally associated with deepwater drilling, the company noted.
"This project is fully consistent with our focus on the region," said ADES Chief Executive Mohamed Farouk.
He added: "ADES is on the right track, as we fully leverage our valuable partnership with Vantage and its high-quality asset in Egypt's ultra-deepwater market."
ADES shares were trading flat on Friday in London at USD13.00 each.
By Evelina Grecenko; [email protected]
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