SAUDI ARABIA —Arabian Drilling has secured a major five-year contract valued at approximately SAR 3 billion from Schlumberger Middle East S.A. (SLB) for the provision of 11 land rigs for Gas Lump Sum Turnkey (LSTK) operations in Saudi Arabia. The awarded units serve as the incumbent rigs under the previous Gas LSTK project with SLB, ensuring uninterrupted service execution across key natural gas developments within the Kingdom. Financial contributions from the five-year agreement are scheduled to commence in the third quarter of 2026, supporting high utilization rates across the company's onshore drilling operations.
Arabian Drilling is Saudi Arabia's largest drilling contractor by fleet size, providing onshore and offshore energy services to major national and international operators. SLB is a global technology company specializing in energy innovation, subsea solutions, and complex field management services.
This multi-billion-riyal extension underscores the robust demand for specialized land drilling assets amid Saudi Arabia's strategic push to expand domestic natural gas production capabilities. By locking in a five-year commitment, Arabian Drilling significantly enhances its long-term revenue visibility while solidifying its backlog, reinforcing its market leadership in the Middle Eastern drilling services sector. For SLB, maintaining operational continuity with established rig assets reduces execution risk across complex turnkey gas projects.
From a sector perspective, long-dated rig commitments reflect steady capital deployment in upstream infrastructure, directly supporting Saudi Vision 2030 energy transition goals and gas capacity expansion programs. The agreement demonstrates strong operator confidence in localized drilling capabilities, setting a positive benchmark for fleet utilization, supply chain stability, and ongoing energy service investments across the region.
