RIYADH: Arabian Drilling Co., listed on Saudi Arabia’s main market, has renewed contracts for 11 onshore gas drilling rigs, with the value of the agreement representing 15 to 20 percent of the company’s 2024 revenues.
In a Tadawul statement, the company said the agreement, which has a tenure of one year, was signed with global technology firm SLB, which holds a 34.3 percent stake in the company.
In a March bourse filing, Arabian Drilling reported a 2024 net profit of SR3.61 billion ($962 million), with 15 to 20 percent of that total equating to around SR542.4 million to SR723.8 million.
“This extension reinforces our market position as a preferred partner in the energy sector. Our ability to secure this extension is a testament to our client’s confidence in our capabilities and the consistent, high-quality service we deliver,” said Ghassan Mirdad, CEO of Arabian Drilling.
“Extending the contract confirms our commitment to excellence and strategic insight, which are crucial in maintaining valuable, long-term partnerships within the industry,” he added.
The company said that all 11 rigs are currently in operation, and Arabian Drilling will continue to provide drilling services to SLB under a lump sum turnkey contract.
An LSTK contract is a comprehensive form of agreement used in construction and engineering projects. Under this type of deal, the contractor agrees to complete the project for a predetermined and fixed price.
The contractor is responsible for both designing and constructing the project to meet specific requirements while ensuring that it is fully operational upon completion.
Arabian Drilling further said that the impact of the contract extension will be reflected in the company’s revenues starting from the current quarter.
“Looking ahead, Arabian Drilling remains committed to driving operational excellence, maintaining robust partnerships, and delivering innovative, sustainable solutions to the energy sector,” said the company.
“The successful extension of these rig contracts reinforces the company’s leadership in the Saudi drilling industry, highlighting its unwavering commitment to safety, quality, and long-term value creation for its stakeholders,” it added.
In July, Arabian Drilling said it signed an international contract valued at SR75 million for offshore drilling operations with a company based in the Gulf Cooperation Council region, initiating its first offshore operation outside Saudi Arabia.
