Arabian Drilling Gets $366 Million Contract Extensions from Saudi Aramco
Arabian Drilling, a company from Saudi Arabia that provides oilfield services, has received new contract extensions from Saudi Aramco for four of its drilling rigs. These extensions are worth $366.4 million (about SAR 1.4 billion), according to a filing on the Saudi stock exchange.
Long-Term Deals
The new contracts will last between one and ten years. With these extensions, Arabian Drilling’s total future work value (called backlog) has increased to $2.9 billion (SAR 11.1 billion).
The company said the new deals will start affecting its financial results from the third quarter of 2025. These contracts also strengthen its long-term partnership with Saudi Aramco, which has been a key client since 1972.
These renewals are part of Arabian Drilling’s plan to keep its rigs working longer, especially those that were supposed to stop working in 2025.
CEO Ghassan Mirdad said these contracts will help the company stay financially strong and continue growing in a competitive market.
More Rigs Up for Renewal
As of March 31, 2025, the company had 22 rigs that needed contract renewals. Two of these were renewed in May, and talks are ongoing for the rest.
Arabian Drilling was founded in 1964 and is one of the top drilling companies in Saudi Arabia. It is mostly owned by TAQA and SLB (formerly Schlumberger). The company works with big clients like Aramco, KJO, SLB, and Baker Hughes. It operates many onshore and offshore rigs that can handle the tough desert environment.
Past Contracts
In November 2024, Arabian Drilling signed a five-year extension for one land rig with Aramco, worth $77.2 million (SAR 290 million). Before that, it signed a 10-year deal for another rig worth $117.1 million (SAR 440 million).
Strong Start to 2025
In the first quarter of 2025, Arabian Drilling made record revenue of $242.9 million (SAR 911 million), which is a 7.2% increase. This was mostly due to good performance of its new land rigs and high movement activity of rigs.
Published: 3rd July 2025
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