Arabian Drilling Lands $800 Million Contract to Operate 11 Land Rigs
Saudi-listed Arabian Drilling Co. has signed a five-year contract worth approximately SR3 billion ($800 million) with SLB Middle East to provide 11 land rigs for integrated gas drilling operations.
The contract, signed August 30, covers rigs that were previously deployed under an existing integrated gas drilling project with SLB, according to a statement filed with the Saudi Exchange. The agreement is expected to begin contributing to Arabian Drilling’s revenue starting in the third quarter of 2026 and will support utilization of its land-rig fleet throughout the contract period.
The deal comes as Arabian Drilling expands its operations beyond Saudi Arabia while recovering from a temporary suspension of offshore drilling activity earlier this year. Fahad Albani, CEO of Arabian Drilling, said the company was pleased to sign the strategic contract with SLB, calling it a reaffirmation of their long-standing relationship and a source of greater visibility over future revenues. He added that the contract reflects the client’s confidence in Arabian Drilling’s operational performance, service quality, and commitment to safe and efficient execution, and said the company remains focused on supporting customers’ long-term goals while contributing to the growth of Saudi Arabia’s energy sector and creating sustainable value for shareholders.
The company noted that the agreement strengthens both its revenue visibility and long-term operational backlog. Because SLB is one of Arabian Drilling’s major shareholders, the contract is classified as a related-party transaction.
The announcement follows a broader push into regional markets. Earlier in August, Arabian Drilling signed a separate contract with a new client in another Gulf Cooperation Council market, marking its entry into a new region as part of its offshore expansion beyond Saudi Arabia. The company initially withheld details of the client and contract value, saying operations were expected to begin before the end of the third quarter of 2026. A subsequent addendum filed August 19 revealed that the contract was signed with Masirah Oil Limited and Northern Offshore Ltd. on August 17 to drill two firm wells and two optional wells in Oman. The deal is valued at less than 5 percent of the company’s total revenue based on its audited 2025 financial statements, and follows the early completion of Arabian Drilling’s first international offshore drilling contract and the redeployment of its jack-up rig to another GCC market.
On the offshore front, Arabian Drilling said in August that it expects to resume work on all temporarily suspended offshore rigs by the end of September. The company had paused operations on some offshore rigs across the GCC region in March as a precautionary measure amid escalating tensions involving Israel, the US, and Iran. On August 12, the company confirmed it had received notices to resume operations on its remaining suspended offshore rigs, with offshore fleet utilization expected to reach 100 percent by the end of the third quarter.
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