Middle East offshore drilling groups agree to merger terms

ADES International Holding has made an offer to acquire all shares in Shelf Drilling via a cash merger arrangement.

Following completion of the transaction, which Shelf Drilling management has approved, the latter would be de-listed from the Oslo Stock Exchange.

Shelf Drilling’s focus is on shallow-water offshore drilling operations in the Middle East, Southeast Asia, India, West Africa, the Mediterranean and the North Sea. The company was formed in 2012.

The transaction is set to close in fourth-quarter 2025, subject to approval from Shelf Drilling shareholders. The combined companies would have a contracts backlog of $9.45 billion, with ADES expecting to achieve annual operational cost synergies of $40 million to $50 million.

Dr. Mohamed Farouk, CEO of ADES, said, "Over the past years, we have unlocked new geographies and deepened our strategic reach. With this landmark 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.

“As part of the transaction, we will add 33 jackups and a dedicated, experienced workforce, supporting expansion into additional regions and further strengthening our global footprint.”

Currently the company has more than 8,000 employees and a fleet of 90 rigs working in 13 countries, including 48 jackup offshore drilling rigs, one jackup barge, and one mobile offshore production unit.