Saudi Arabia’s ADES to acquire Shelf Drilling in all-cash deal

AL KHOBAR AND DUBAI, August 5, 2025 – ADES International has agreed to acquire all outstanding shares of Oslo-listed Shelf Drilling for about USD 379 million in an all-cash merger deal, the companies announced on Tuesday.

Under the agreement, ADES International Cayman will merge with Shelf Drilling, paying NOK 14.00 (USD 1.36) per share. Following the completion of the transaction, Shelf Drilling will be 100% owned by ADES and will be delisted from the Oslo Stock Exchange.

The deal will create a leading global player in shallow-water drilling with 83 jackup rigs, of which 46 are premium units. It will also grow ADES’s footprint into new markets and increase its backlog to USD 9.45 billion.

ADES noted it expects operational cost synergies of USD 40 million-50 million per year over the medium term. The company will also settle Shelf Drilling’s existing debt obligations, calling approximately USD 1.3 billion in US senior notes held by Shelf Drilling.

The transaction is expected to close in Q4 2025, subject to shareholder and regulatory approval, and customary terms and conditions.

“With this 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,’ said ADES CEO Mohamed Farouk. “The transaction is supported by Shelf Drilling’s USD 1.5 billion firm backlog and provides access to key regions with solid growth prospects.”

“This transaction unites two highly complementary organisations, 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,” added Greg O’Brien, CEO of Shelf Drilling.

ADES Holding Company is a Saudi-headquartered oilfield services provider of onshore and offshore drilling and workover services in the Middle East and North Africa. It operates one of the region’s largest jackup fleets.

Dubai-based Shelf Drilling specialises in shallow-water offshore drilling services with a fleet of jackup rigs primarily operating in Southeast Asia, India, West Africa and the Middle East.

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