ADES International Holding Ltd. said on Jan. 11 it has successfully extended two existing contracts for Admarine II, Admarine IV and renewed its lease for Admarine VI, all of which are in the Gulf of Suez area.
The extension of the Admarine II and Admarine IV contracts are broadly in line with historical rates and serve as a prelude to finalizing their renewals. Meanwhile, the renewal of the Admarine VI lease will secure multimillion dollar revenue streams for ADES for the next two years.
The Gulf of Suez Petroleum Co. (GUPCO), a joint venture between BP PLC (NYSE: BP) and the Egyptian General Petroleum Co., has extended its existing contract for ADES’ Admarine II jackup barge, which expired in December 2017, for another three months. The extension is intended to cover the period during which a fifth consecutive contract renewal term for Admarine II with GUPCO is finalized.
GUPCO also extended its existing contract for ADES’ jackup rig, Admarine IV, which expired in December 2017, for a further six months. Admarine IV has been leased to GUPCO since January 2014 for drilling in the Gulf of Suez. ADES expects to sign a fifth consecutive lease agreement with GUPCO for Admarine IV in the coming months.
Finally, ADES has also successfully renewed its existing contract for its Admarine VI jackup rig with the General Petroleum Co. (GPC), the first national oil company in Egypt. Originally due to expire in March 2018, the contract has been renewed for two years and marks GPC’s third consecutive renewal for Admarine VI since the company first began leasing the rig in April 2015.
“Securing these new awards is directly in line with our growth strategy and allows us to deliver on one of our primary pillars, namely the continued build-up of our backlog,” Dr. Mohamed Farouk, ADES’ CEO, said.