Oil & Gas

A Saudi-based drilling company has secured its first contract in West Africa, marking a significant milestone in expanding its operational footprint across global markets. This new agreement enhances the company’s presence, allowing it to penetrate its 11th market.

With the inclusion of Nigeria in its portfolio, the company strengthens its position on the international stage. This contract is particularly noteworthy as it opens up opportunities in the burgeoning West African energy sector.

Addis Holding, the parent company of Addis Oilfield Services, announced that its offshore platform, Admarin 504, has been awarded a drilling contract by Brittania-U, an integrated local oil and gas company in Nigeria. The contract involves the drilling and completion of six wells, and it is expected to take place over the next 365 days. The operations are slated to begin in the second quarter of 2025, solidifying the company’s entry into the West African market.

As part of this contract, Addis has entered into a rig lease agreement with Valent Offshore Drilling Contractors, valued at approximately SAR 81.8 million ($21.8 million). Under this agreement, Addis will provide the offshore platform along with its core crew and administrative support, while Valent Offshore will carry out the drilling operations as per the terms of its contract with Brittania-U. This collaboration is structured to combine Addis’s infrastructure with Valent’s local expertise to ensure efficient project execution.

Financially, the new contract is expected to contribute positively to Addis’s performance, with rental income from the platform expected to significantly impact its earnings before interest, taxes, depreciation, and amortization (EBITDA) once operations commence in 2025. Addis currently operates a diverse fleet of 89 rigs, including onshore and offshore drilling platforms, spread across several countries. With a growing presence in the Middle East, Africa, and beyond, the company is poised for further growth, as evidenced by its strong financial performance and expanding portfolio of contracts.