Arabian Drilling Secures Five-Year SLB Contract Worth Roughly SAR 2 Billion
Saudi Arabian onshore and offshore drilling contractor Arabian Drilling Company (TADAWUL: 2381) has signed a five-year agreement with SLB that adds approximately SAR 2 billion to the company’s contract backlog, according to a release circulated via TradingView.
The contract extends the working relationship between the Riyadh-listed driller and SLB, one of the world’s largest oilfield services providers. Long-duration service agreements of this kind give drilling contractors visibility over rig utilization — a key metric in a business where day rates and fleet deployment drive revenue. A multi-year backlog also matters to investors tracking how contracted work underpins future cash flow.
Context for the services sector
Drilling contractors sit upstream in the energy value chain, meaning they provide the rigs and crews that physically explore for and produce oil and gas before crude moves into midstream transport or downstream refining. Demand for their services tends to track operator drilling budgets, which in Saudi Arabia remain closely tied to national production strategy and long-term capacity targets.
SLB, which trades at $57.10, up 0.18% from a previous close of $57.00, and carries a market capitalization of roughly $84.7 billion, has been expanding partnership-style contracts across the Middle East. Such arrangements typically bundle drilling with digital and drilling-fluids or measurement services, deepening integration between the contractor and the services provider. Separately, DTI — a smaller drilling-related name trading flat at $2.61 with a market cap near $92.1 million — illustrates the wide range of scale among companies competing in energy services.
What the contract means operationally
A backlog addition of about SAR 2 billion spread over five years implies roughly SAR 400 million per year of contracted revenue, though actual recognition will depend on rig performance, mobilization timing, and contract terms that were not detailed in the announcement. Backlog figures are a standard disclosure for listed drillers because they signal how much of the forward revenue pipeline is already secured versus subject to spot-market day rates.
The announcement reinforces the strategic importance of Saudi Arabia’s drilling market, where localization programs and sustained upstream investment have made long-term local partnerships a centerpiece of international services companies’ regional strategies.
Source: original release via TradingView.
What to watch
- Arabian Drilling’s next quarterly earnings release for updated backlog and utilization figures
- Details on the specific rigs, scope, and service lines covered under the SLB agreement
- SLB’s upcoming earnings commentary on Middle East contract momentum
- Any additional contract awards announced by Arabian Drilling during 2025
