Saudi-based drilling firm ADES to acquire Norwegian rival Shelf in a $380 million deal
In a joint statement, ADES International Holding and Shelf Drilling have announced their intention to merge, creating a major global player in the shallow-water offshore drilling industry. The transaction is expected to close in the fourth quarter of 2025, subject to approval from Shelf Drilling's shareholders and customary closing conditions.
The offer price for Shelf Drilling shares stands at 14 Norwegian crowns per share, representing a 62% premium over Tuesday's closing price in Oslo. The combined group will have approximately 83 offshore jack-up drilling rigs as of the fourth quarter of 2025.
The merger will reinforce ADES International Holding's position as a market leader in shallow-water offshore drilling, serving the international oil and gas industry in 13 countries across the Middle East, Southeast Asia, India, West Africa, the Mediterranean, and the North Sea. The merged entity will have a contracts backlog valued at approximately $9.45 billion as of mid-2025.
ADES expects significant operational synergies, projecting annual cost savings of $40 to $50 million over the medium term. Additionally, ADES plans to optimize the capital structure and handle Shelf Drilling’s existing debt obligations.
The merger is recommended by Shelf Drilling's board and has received legal and financial advice from firms such as Evercore (financial advisor) and law firms Advokatfirmaet Thommessen AS, Conyers, and Latham & Watkins LLP.
The exact date for the extraordinary general meeting of Shelf Drilling's shareholders has not been specified, but shareholders are scheduled to vote on the merger on September 16, 2025, with a two-thirds majority required for approval.
With the closure of the transaction, Shelf Drilling will be delisted from the Oslo Stock Exchange and become wholly owned by ADES International Holding. The combined group is set to bring improved operational efficiency and expanded global reach to the offshore drilling market.
The merger between ADES International Holding and Shelf Drilling will secure a significant presence in the finance sector, with the combined entity leveraging approximately $9.45 billion in contracts backlog as of mid-2025. The merged offshore drilling company, expected to close in the fourth quarter of 2025, will also be a key player in the energy sector, operating approximately 83 jack-up drilling rigs and serving the international oil and gas industry in multiple regions.
