Saudi Arabia’s Arabian Drilling has signed contract extensions for five of its rigs, one with Khafji Joint Operations (KJO), which is a joint venture between Aramco Gulf Operations Company and Kuwait Gulf Oil Company, and four with compatriot Aramco.
The contract extension with KJO, which is in direct continuation of the existing contract, is said to account for 8% to 12% of Arabian Drilling’s 2024 revenues. KJO operates in the Saudi Arabian–Kuwaiti neutral zone.
Ghassan Mirdad , Chief Executive Officer of Arabian Drilling, noted: “We are proud to renew this offshore drilling contract with KJO; our first client since commencement of our operations in 1964, which reaffirms our ongoing commitment to providing exceptional service to our clients.”
As of March 31, 2025, contracts for 19 rigs from the UAE player’s fleet are set to expire within the year. Contracts for six of these have been renewed, and the company claims to be engaged in talks with other clients to secure the renewal of the remaining rigs.
The contract extensions for four rigs with Aramco have a combined backlog value of SAR 1.3 billion, or approximately $366 million, and durations varying between one and ten years.
Mirdad believes the contract extensions with Aramco enhance his company’s financial stability and reinforce its strategic position within the industry.
In February, Arabian Drilling decided to join forces with Shelf Drilling to deploy some of the former’s jack-up rigs internationally and expand the reach and capabilities of both companies.