SAUDI ARABIA —Arabian Drilling, Saudi Arabia's largest drilling contractor by fleet size, has signed a major four-year offshore contract valued at approximately SAR 2 billion with Khafji Joint Operations for the provision of four high-specification offshore jack-up drilling rigs to support ongoing offshore drilling operations.
The newly awarded contract represents the largest single offshore drilling agreement granted by Khafji Joint Operations to Arabian Drilling. Under the terms of the contract, Arabian Drilling will deploy four high-specification jack-up rigs across offshore fields, expanding its active fleet serving Khafji Joint Operations by 200%. The four-year operational charter is scheduled to begin contributing to the company's financial results and revenue streams towards the end of the fourth quarter of 2026. This contract award expands Arabian Drilling's total order backlog to an all-time record of approximately SAR 18 billion, offering multi-year revenue visibility and reinforcing the contractor's strategic positioning within the Kingdom of Saudi Arabia's energy sector.
Established in 1964, Arabian Drilling is a premier onshore and offshore drilling service provider based in Saudi Arabia, backed by majority shareholders Industrialization & Energy Services Company and SLB. Khafji Joint Operations operates as a joint venture entity managing petroleum exploration and production activities in the offshore Divided Zone between Saudi Arabia and Kuwait. This sizable charter reflects a broader trend of sustained capital deployment in Middle Eastern offshore hydrocarbon basins, where state-backed entities and regional joint ventures are securing long-term offshore assets to maintain production capacity and fulfill long-term energy mandates.
For energy sector investors and supply chain vendors, the expansion highlights strong operational resilience and sustained offshore rig demand in Saudi Arabia. The SAR 2 billion contract significantly enhances Arabian Drilling's earnings quality and revenue backlog, protecting margins against regional market volatility. Furthermore, the sizable commitment underscores the continued strategic prioritization of offshore upstream infrastructure investments across the Arabian Gulf, signaling steady demand for offshore equipment suppliers and specialized maritime logistics support through the decade.
