ADES Holding Secures 406-Day Rig Contract in Indonesia
The $46.2 million agreement expands ADES Holding's international footprint and provides long-term backlog stability.
Updated on Oct. 27, 2026 in Oil and Gas
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ADES Holding has secured a $46.2 million contract with PT Pertamina Hulu Mahakam to provide the Shelf Drilling Perseverance rig for operations in Indonesia. The agreement, which includes a firm 406-day period, marks a strategic expansion for the company in the Southeast Asian market.
Why it matters
This contract bolsters the company's backlog visibility and leverages its existing international platform to support sustained revenue growth. The deal follows a period of robust expansion for the firm, which reported a 49 percent revenue increase in the first half of 2026.
The 406-day contract is valued at $46.2 million and builds on a portfolio that includes 128 total units. ADES maintains a 97.6 percent fleet utilization rate as of June 30, supporting its 49 percent revenue growth reported for the first half of 2026.
The players
ADES Holding
An international oil and gas drilling provider operating a fleet of 128 units across 20 countries.
PT Pertamina Hulu Mahakam
An oil and gas operator managing exploration and production assets in Indonesia.
The details
The agreement covers mobilization and demobilization fees for the Shelf Drilling Perseverance rig, which will begin deployment once its current campaign concludes. The contract duration includes a firm 406-day term with an optional 30-day extension, providing operational stability for the rig. This deployment specifically targets Southeast Asia, representing a continued push for regional backlog replenishment.
Timeline
June 30, 2026: ADES reported a total backlog of 34.67 billion SR and a 97.6 percent fleet utilization rate.
July 2026: The company signed two offshore contracts totaling 858.3 million SR.
October 27, 2026: ADES announced the new contract with PT Pertamina Hulu Mahakam.
December 2026: Operations under the new agreement are expected to commence.
Market Landscape
This deal follows the pattern of rapid backlog expansion observed across the international offshore drilling sector throughout 2026. It underscores a strategic move by major operators to secure high-utilization assets across emerging regional markets.
Operators should monitor how large-scale rig deployments impact regional pricing and availability for secondary service providers. Firms involved in the offshore sector must track these contract durations to anticipate potential shifts in fleet utilization benchmarks for the coming year.
The takeaway
Securing long-term commitments for individual units remains a critical lever for managing revenue volatility in the capital-intensive drilling industry. Operators should review their own backlog visibility metrics and compare them against publicly reported utilization targets for the current fiscal period.
What happens next
Operations under the new contract are expected to begin by the end of December 2026.
Further reading
For more on industry-wide service demand, visit the Oil and Gas section.
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