ADES Extends Three Major Contracts in Gulf of Suez
VADES International Holding Ltd., the London-listed company providing offshore and onshore oil and gas drilling and production services in the Middle East and Africa through its subsidiaries, 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 multi-million dollar revenue streams for ADES for the next two years.
The Gulf of Suez Petroleum Company (GUPCO), a joint venture between BP PLC and the Egyptian General Petroleum Company (EGPC), has extended its existing contract for ADES' Admarine II jack-up barge, which expired in December 2017, for another three months. Admarine II was acquired by ADES in 2004 and has been leased to GUPCO since September 2012. 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 was acquired by ADES in 2013 and 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 Company (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.