Arabian Drilling Secures New Gulf Contract as Offshore Operations Expand

Saudi-listed Arabian Drilling Co. has secured a new offshore drilling contract in another Gulf Cooperation Council country, marking another step in the company’s regional expansion beyond Saudi Arabia.

The drilling contractor did not disclose the value of the contract or identify the new client. Operations are expected to begin before the end of the third quarter of 2026.

Arabian Drilling said the contract is expected to strengthen its backlog, improve revenue visibility and support its long-term earnings outlook. The company described the award as evidence of its growing offshore capabilities and ability to win business in other Gulf markets.

The latest agreement follows the early completion of Arabian Drilling’s first international offshore drilling contract and the subsequent redeployment of the company’s jack-up rig to another GCC country.

Chief Executive Officer Fahad Al-Bani said winning another contract outside Saudi Arabia after completing the first international offshore project ahead of schedule represented an important milestone for the company.

He said Arabian Drilling would continue expanding its regional presence while focusing on sustainable growth, shareholder value and the changing requirements of the energy industry.

The development comes as offshore drilling activity in the Gulf begins to recover following a period of regional instability that disrupted some energy operations and led to temporary suspensions of drilling rigs.

Arabian Drilling received notices earlier this month to resume operations at its remaining suspended offshore rigs. The company expects utilisation of its offshore fleet to reach 100 percent by the end of the third quarter.

The recovery follows a similar move by Saudi-listed offshore drilling contractor ADES Holding, which announced that it had received notices to resume an offshore contract and several onshore contracts in Saudi Arabia.

Regional disruptions have affected drilling companies’ financial results. Arabian Drilling reported a net loss of SR24.5 million for the first half of 2026, compared with a net profit of SR82.7 million during the same period last year.

The decline was largely linked to the suspension of some offshore drilling operations during the first half.

Arabian Drilling’s latest contract could help offset some of that pressure by restoring offshore activity and adding work outside its domestic market.

The company’s international expansion comes as Gulf energy firms seek to maintain production capacity and strengthen their positions across the regional oil and gas services market.

In July 2025, Arabian Drilling announced its first international offshore contract, worth SR75 million, for drilling operations with a GCC-based company. The agreement represented the company’s first offshore operation outside Saudi Arabia.

The latest award expands on that initial international move and gives Arabian Drilling another opportunity to build its regional offshore business.

The company did not provide details on the drilling location, contract duration or rig assigned to the project. Further information is expected as operations move toward the planned start before the end of September.