Saudi-based international drilling services company ADES Holding has won a new contract for its jack-up Compact Driller with Brunei Shell Petroleum (BSP) offshore Brunei Darussalam.

The Compact Driller has been chartered to perform plug and abandonment (P&A) operations in the sultanate, on a contract expected to commence in the fourth quarter of 2026.

The two-year contract has an estimated value of approximately 236 million Saudi riyals (SAR) ($63 million), which equates to a dayrate of $86,301). Prior to its deployment, standard jack-up Compact Driller will undergo preparatory work in Singapore. The rig is currently on contract with state-owned Oil and Natural Gas Corporation offshore India until May next year.

The MLT (Marathon LeTourneau) 116C-design jack-up can operate in water depths of up to 300 feet and has accommodation for 146 personnel.

BSP is a 50:50 joint venture between the Bruneian government and UK supermajor Shell.

While the contract was signed on 17 November, ADES only announced it on Thursday, the day after it completed the acquisition of Shelf Drilling. The combined entity has a fleet of 83 offshore rigs — including 46 premium jack-ups — and 40 onshore drilling units, operating in 19 countries.

“This award reflects Shelf Drilling’s proven track record of safety and operational excellence, particularly its unique experience delivering P&A services in the [Southeast Asia] region,” said ADES Holding chief executive Mohamed Farouk.

“We are pleased to begin our partnership with BSP and remain committed to delivering safe and efficient operations in support of their activities in Brunei.”

ADES noted that global marketed jack-up utilisation currently is above 90% prior to the redeployment of several suspended rigs from Saudi Arabia, including the resumption notices received for ADES’ ADM 510 and Shelf’s Harvey H Ward.

“With 123 rigs and a backlog of over 34 billion SAR, we have built a powerhouse platform with commercial strength and long-term earnings capacity,” added Farouk.

ADES, which sees Southeast Asia as a region of “immense opportunity and growth”, expects to achieve annual operational cost synergies of $50 million to $60 million over the medium term thanks to the merger.