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Arabian Drilling Co. has officially signed a five-year contract valued at approximately SAR 3 billion with SLB Middle East to supply 11 land rigs for integrated gas drilling operations. The agreement extends the deployment of the same rigs previously utilized under a prior integrated gas project between the two parties. SLB is a major shareholder in Arabian Drilling, making this a related-party transaction according to the company's filing on Tadawul.
The commercial agreement provides significant operational visibility for Arabian Drilling, ensuring sustained utilization of its land rig fleet over the next five years. The financial impact of this major contract will begin materializing in the company's financial statements from the third quarter of 2026, reinforcing its long-term revenue pipeline and business stability within the Kingdom's expanding energy services sector.
For equity markets, the development highlights ongoing capital investment in Saudi Arabia's domestic gas production and energy infrastructure. Investors will likely monitor future quarterly reports starting in mid-2026 to evaluate operational margins and revenue contributions from this deal, as well as any broader sector developments involving Aramco's gas expansion initiatives.
