Arabian Drilling secures SAR2bn contract for eight gas rigs

Arabian Drilling Company has signed a five-year contract with SLB covering eight land rigs for gas drilling operations in Saudi Arabia. The agreement is valued at approximately SAR2 billion ($533 million), with revenue expected to begin contributing during the fourth quarter of 2026.

The award is separate from Arabian Drilling’s SAR3 billion contract for 11 rigs announced on 31 August and constitutes a new procurement milestone rather than republication of the earlier transaction. The latest award increases the company’s committed gas-drilling workload and demonstrates continued investment in Saudi unconventional and domestic gas production. Reuters and the Saudi Exchange reported the contract.

Why it matters: Although the prime contract has been awarded, it creates substantial downstream demand for drilling equipment, pressure-control systems, tubulars, instrumentation, rig maintenance, logistics, specialist personnel, digital well services and health-and-safety support. International suppliers should pursue vendor and subcontracting routes through Arabian Drilling and SLB.

Sources: Saudi Exchange; Reuters; Argaam.