Arabian Drilling $800 Million Contract for 11 Land Rigs 

The $800 million Arabian Drilling land rigs contract was signed on August 31, according to a statement submitted to the Saudi Exchange. The rigs had previously been deployed under an integrated gas drilling project with SLB. Revenue contribution from the agreement is expected to begin in the third quarter of 2026. 

The contract provides support for Arabian Drilling’s land rig operations throughout the five year period. The company said the agreement would strengthen its long term operational backlog and improve visibility over future revenue. 

The deal comes as Arabian Drilling continues its regional drilling expansion beyond Saudi Arabia. Earlier in August, the company announced a separate contract for drilling operations in Oman with Masirah Oil Limited and Northern Offshore Ltd. The agreement covers two firm wells and two optional wells. 

The Oman contract marks Arabian Drilling’s entry into another Gulf Cooperation Council market. Operations are expected to begin before the end of the third quarter of 2026, adding an international component to the company’s ongoing expansion strategy. 

Arabian Drilling is also moving to restore its offshore fleet activity. The company said in August that all temporarily suspended offshore rigs were expected to resume operations by the end of September. The remaining suspended rigs had received notices to restart work, with offshore fleet utilisation expected to reach 100% by the end of the third quarter. 

The $800 million Arabian Drilling land rigs contract also involves SLB, which is a major shareholder in Arabian Drilling, making the agreement a related-party transaction. 

Chief Executive Officer Fahad Albani said the contract strengthens the relationship between the two companies and provides greater visibility over future revenues. The company also highlighted operational performance, service quality and safe execution as priorities under the agreement. 

The land rig operations covered by the contract are expected to support Arabian Drilling’s fleet utilisation while the company continues its regional drilling expansion across Gulf markets. The new agreement adds to its existing activities and marks another step in expanding its drilling portfolio.