Saudi-listed Arabian Drilling enters new GCC market with offshore contract

19/08/2026 03:50 AST

Saudi-listed Arabian Drilling Co. has secured a contract with a new Gulf client, marking its entry into another regional market as the drilling contractor expands its offshore operations beyond the Kingdom.

The company did not disclose the value of the contract or who it is with, but said operations are expected to begin before the end of the third quarter of 2026. The award is expected to increase backlog, improve revenue visibility and strengthen its long-term earnings profile.

In a statement, the company said the deal underscores Arabian Drilling's ability to leverage its offshore expertise to secure new opportunities and support its long-term growth objectives.

The new contract follows the successful early completion of Arabian Drilling's first international offshore drilling contract and the redeployment of the jack-up rig to another Gulf Cooperation Council country.

Arabian Drilling's announcement arrives against a backdrop of extended regional instability in the Gulf, where conflict involving Israel, the US, and Iran has disrupted energy operations and raised concerns over the security of key supply routes, including the Strait of Hormuz.

Fahad Al-Bani, CEO of Arabian Drilling, said: "Securing a new contract in another GCC country after the successful completion of our first international offshore contract ahead of schedule represents an important milestone in Arabian Drilling's growth journey."

He added: "As we continue to expand our regional presence, we remain focused on delivering sustainable growth, creating long-term value for our shareholders, and supporting the evolving needs of the energy sector across the region."

In July 2025, the company announced that it had signed an international contract valued at SR75 million ($20.02 million) for offshore drilling operations with a company based in the GCC region, initiating its first offshore operation outside Saudi Arabia.

Offshore recovery
The development comes as offshore drilling activity in the Gulf recovers after regional tensions led to temporary suspensions of some rigs earlier this year.

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

The restart follows a similar announcement earlier this month by Saudi-listed offshore drilling contractor ADES Holding Co., which said it had received resumption notices for an offshore contract and several onshore contracts in the Kingdom.

The disruption, however, had an impact on Arabian Drilling's performance, with the company reporting a net loss of SR24.5 million in the first half of this year, compared with a net profit of SR82.7 million in the same period a year earlier, as certain offshore drilling operations were suspended during the period.

Arab News