Saudi Arabian Drilling Expands Operations with New Contract

Saudi Arabia’s Arabian Drilling has recently made a significant move by signing a contract with a company from the Gulf Cooperation Council (GCC). This marks the firm’s first offshore operation outside Saudi Arabia, demonstrating its strategic efforts to broaden its presence beyond the domestic market. The undisclosed contract, valued at SAR 75 million (approximately $20 million), is seen as a pivotal moment for Arabian Drilling following its listing on the Saudi financial market Tadawul in November 2022.

The contract entails conducting preliminary drilling of exploration wells over a period of 5 to 7 months, with the possibility of extension based on the outcomes of the exploratory activities. Scheduled to commence in Q1 2026, this venture reflects Arabian Drilling’s ambition to expand its operational footprint internationally.

Speaking on this development, Ghassan Mirdad, the Chief Executive Officer of Arabian Drilling, stated, “Signing this contract signifies a strategic milestone for Arabian Drilling as it marks our first major step in expanding our operational footprint internationally. We are on the verge of fulfilling what we promised, and I am confident in our team’s ability to deliver exceptional value through this important step, which we see as the beginning of many future contracts.”

He added, “As we witness the unfolding events of this year, we are preparing to take significant steps to implement a major transformation with the aim of becoming a stronger and more flexible company, with a sustainable financial structure, and we look forward to facing the future with confidence, aiming to achieve long-term sustainable returns for our shareholders.”

In addition to the contract signing, Arabian Drilling has established a new branch in Sharjah, United Arab Emirates, to serve as a regional base for its operations within the GCC and beyond. This move further solidifies the company’s commitment to expanding its presence and capabilities in the region.

Earlier this month, Arabian Drilling secured contract extensions for five of its rigs, including agreements with Khafji Joint Operations (KJO) and Aramco. These developments underscore the company’s growing presence and reputation in the oil and gas industry.