Arabian Drilling Extends Contracts for Jackup Rigs in Saudi Arabia

The largest onshore and offshore drilling company in Saudi Arabia by fleet size, Arabian Drilling, has secured contract extensions for several of its jackup rigs. The company recently signed a three-year extension with Khafji Joint Operations (KJO), a joint venture between Aramco Gulf Operations and Kuwait Gulf Oil operating in the Saudi Arabia-Kuwait Neutral Zone.

While the financial details of the contract were not disclosed, Arabian Drilling stated that the total backlog addition from this deal would contribute between 8.0% to 12.0% of the company’s 2024 revenues, amounting to approximately $77m to $116m.

The contract extension with KJO is a direct continuation of the existing agreement and became effective on Monday, July 14. The specific rig involved in the extension was not named in the announcement.

As of March 31, 2025, Arabian Drilling had 19 rigs with contracts set to expire within the year. To date, the company has successfully renewed contracts for six rigs, with four of those extensions finalized earlier this month. Aramco, the national oil company of Saudi Arabia, extended these deals with a combined backlog value of SAR 1.3bn ($366m) and durations ranging from one to 10 years.

The first two jackup rig extensions secured by Arabian Drilling in 2025 were both for 10-year terms, with the contracts awarded in May signaling continued confidence in the company’s services.