Saudi Arabia’s ADES International Holding has signed a deal to acquire rival offshore rig operator Shelf Drilling in a transaction valued at US$379.8mn.
The deal, subject to shareholder approval and other closing conditions, is expected to complete in the fourth quarter of 2025.
Once finalised, the combined entity will operate 83 offshore jack-up rigs, including 46 premium units, across key shallow-water basins worldwide, with a total backlog of US$9.45bn as of 30 June 2025.
ADES anticipates achieving annual operational cost synergies of US$40mn-50mn over the medium term and plans to settle Shelf Drilling’s existing debt obligations. The company also said it would work to optimise the new group’s capital structure and operational efficiency.
Dr. Mohamed Farouk, CEO of ADES, said, "Over the past years, we have unlocked new geographies and deepened our strategic reach. With this landmark transaction, we reinforce our position as a market leader in shallow-water offshore drilling, offering superior services to our client base alongside enhanced scale, asset quality and operational reach.
“As part of the transaction, we will add 33 jackups and a dedicated, experienced workforce, supporting expansion into additional regions and further strengthening our global footprint.”
“Today’s announcement delivers immediate and compelling value to our shareholders, reflecting both the strength of our business and the dedication of our employees. Over the past 13 years, Shelf Drilling has built a resilient company with an outstanding safety track record and a reputation for operational excellence.
“This transaction unites two highly complementary organizations, and we are confident that the combination will unlock the full strategic value of our global fleet and operations. We look forward to working closely with the ADES team to ensure a seamless and successful integration,” said Greg O’Brien, CEO of Shelf Drilling.
