MEOG: ADES continues fleet expansion

This week’s MEOG covers the expansion of a Saudi driller and progress on Iraqi gas licensing.

Indian drilling company Aban Offshore this week announced that it has agreed a deal to sell four jack-up rigs to Saudi Arabia’s ADES Group as the companies plot opposing courses.

The Indian company announced on April 14 that it had “approved the sale of Rigs Deep Driller 2, Deep Driller 4, Deep Driller 5 and Deep Driller 6”, which were owned by step down subsidiaries, for $106mn.

Aban said that Deep Driller 2 and Deep Driller 4 would raise $26mn each, with Deep Driller 5 and Deep Driller 6 raising $27mn.

In February, ADES bought the Indian firm’s Deep Driller 1 for $12mn, while Aban sold three more units in November, with the Deep Driller 3 going to Abu Dhabi National Oil Co.’s ADNOC Drilling subsidiary for $31.5mn and the Aban Abraham sold for scrap.

The latest sale marks another step in Aban’s divestment drive, while ADES is moving in the opposite direction.

Meanwhile, the Iraqi government is seen making a decision on the finalisation of a contract for the Akkas gas field in the western Al Anbar Governorate by early May.

In an interview with Al-Forat, Oil Minister Ihsan Abdul Jabbar said that the cabinet is considering reactivating a deal with US oilfield services specialist Halliburton that would provide the Ministry of Oil (MoO) with data required for a decision to be taken on whether or not to proceed with the development of Akkas, Iraq’s largest non-associated or ‘free’ gas deposit.

He said that the contract with Halliburton would include testing that could influence the naming of an operator.

In February, Abdul Jabbar told a meeting of the Gas Exporting Countries Forum (GECF) in Doha that the planned deal with Halliburton would cover the cost of development, potentially alongside state-backed Saudi Aramco. The US and Saudi firms are collaborating on the development of the Jafurah gas deposit in the Kingdom’s Eastern Province.