Arabian Drilling has signed a five-year contract with SLB Middle East for 11 land rigs, strengthening its position in Saudi Arabia’s expanding gas sector.
The agreement, valued at approximately $800 million, will support gas lump sum turnkey (LSTK) operations in the Kingdom and provide continued work for Drilling’s land rig fleet over the coming five years.
Existing Fleet to Continue Operations
The 11 rigs covered by the new contract are already deployed under Arabian Drilling previous gas LSTK project with SLB. The earlier agreement was extended for one year in August 2025, allowing the rigs to remain operational while the companies worked toward a longer-term arrangement.
Under the newly signed contract, the rigs will continue supporting SLB’s gas operations in Saudi Arabia. Arabian Drilling expects the agreement to begin contributing to its revenue from the third quarter of 2026.
The long-term commitment is also expected to provide greater visibility into fleet utilization and revenue, supporting the drilling company’s efforts to maintain consistent activity across its land rig portfolio.
SLB’s Stake in Arabian Drilling
SLB holds a 34% stake in Arabian Drilling, making it a related party to the transaction. The new agreement therefore represents a significant commercial relationship between the two companies, while further reinforcing their collaboration in Saudi Arabia’s gas development activities.
The contract comes as Arabian Drilling continues to pursue growth opportunities beyond its core Saudi market. The company has been working to broaden its international footprint and capitalize on opportunities across the wider Middle East energy sector.
Expanding Beyond Saudi Arabia
In August, Arabian Drilling signed an agreement with Masirah Oil Limited and Northern Offshore Ltd covering two firm wells and two optional wells in Oman. The deal forms part of the company’s broader strategy to expand its presence in international markets.
The latest SLB contract, meanwhile, gives Arabian Drilling a substantial multi-year commitment in its home market while supporting ongoing gas development activity in Saudi Arabia. With an estimated value of $800 million, the agreement is set to become an important contributor to the company’s revenue and fleet utilization from 2026 onward.
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