ADES is the largest jackup drilling contractor globally, with 44 rigs owned, and four under its management, and a fleet valued at $1.98 - $2.2 billion. Shelf Drilling…
ADES is the largest jackup drilling contractor globally, with 44 rigs owned, and four under its management, and a fleet valued at $1.98 - $2.2 billion. Shelf Drilling, also among the TOP 5 jackup drilling contractors, has a modern 32-rig competitive fleet valued at $1.42 - $1.57 billion. Now, through a NOK 3.9 billion ($380 million) all-cash transaction, the two are forming a combined entity that not only redefines scale but marks a shift in global offshore drilling power.
The initial offer was of NOK 14 per share, but in September ADES increased the cash consideration offered to Shelf shareholders to NOK 18.50 per share. In a moment of market uncertainty, contract suspensions and cost discipline, this merger appears to carry a strategic premium. This offer likely exceeds near-term standalone valuation metrics but reflects a long-term vision: the creation of the largest jackup fleet globally by far, a major geographic expansion, a more diverse client portfolio (specially IOCs) and operational synergies.
© Esgian
The jackup drilling market has undergone significant transformation over the past decade, reshaped by downturns, bankruptcies, and bold mergers. In 2012, the leading contractors were Valaris (then Ensco), Shelf Drilling, Hercules Offshore, Rowan, and Noble. Through a wave
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