Arabian Drilling has officially signed a significant agreement to bolster its presence within the regional energy sector. The company entered into a five-year land rig contract valued at approximately SR3 billion, or $800 million, with SLB Middle East. This strategic land rig contract focuses on the deployment of 11 land rigs specifically for integrated gas drilling operations.
Operational Details and Financial Impact
The agreement, finalized on 30th August 2026, will cover rigs that were previously active under an integrated gas drilling project managed by SLB. According to the official statement, the financial contribution from this deal is anticipated to commence in the third quarter of 2026. By securing this land rig contract, the firm aims to maintain high utilization rates across its land-based fleet.
Fahad Albani, CEO of Arabian Drilling, said, “We are pleased to sign this strategic contract with SLB, reaffirming our long-standing relationship and providing greater visibility over future revenues.”
“This contract reflects the confidence our client places in Arabian Drilling’s operational performance, service quality and commitment to safe and efficient execution. We remain focused on supporting our customers’ long-term objectives, contributing to the Kingdom’s energy sector development and creating sustainable value for our shareholders,” he added.
Regional Market Expansion
In August 2026, Arabian Drilling announced that it had secured a contract with a new client in another Gulf Cooperation Council (GCC) market, marking the drilling contractor’s entry into a new regional market as it expands its offshore operations beyond Saudi Arabia.
At the time of the initial announcement, the company did not reveal the identity of the client or the value of the agreement. Arabian Drilling said operations were expected to commence before the end of the third quarter of 2026.
A 19th August 2026 addendum to the announcement subsequently revealed that Arabian Drilling had signed the contract with Masirah Oil Limited and Northern Offshore Ltd. on 17th August 2026. Under the agreement, the company will drill two firm wells and two optional wells in Oman.
The contract value is equivalent to less than 5 percent of Arabian Drilling’s total revenue, based on its audited 2025 financial statements.
The latest contract comes after the successful early completion of Arabian Drilling’s first international offshore drilling contract, followed by the redeployment of its jack-up rig to another GCC market. The move highlights the company’s efforts to expand its offshore drilling presence across the region.
Resumption of offshore operations
Arabian Drilling also announced in August 2026 that it planned to resume operations on all temporarily suspended offshore rigs by the end of September.
The company had suspended operations on several offshore rigs in the GCC region in March as a precautionary measure after the conflict involving Israel, the US and Iran escalated.
On 12th August 2026, Arabian Drilling said it had received notices to restart operations involving its remaining suspended offshore rigs. The company also indicated that utilization across its offshore fleet was expected to reach 100 percent by the end of the third quarter.
The resumption of offshore activities, combined with the new Oman contract, represents a significant step in Arabian Drilling’s regional offshore expansion strategy.
