Arabian Drilling Adds Eight Gas Rigs in Five-Year Deal with SLB
Saudi Arabia-based Arabian Drilling has signed a five-year contract with oilfield services giant SLB covering eight additional drilling rigs dedicated to natural gas projects, according to an announcement covered by Oil & Gas Middle East.
The agreement expands the collaboration between the two companies in the Kingdom’s upstream sector — the exploration and production side of the industry — where demand for gas-directed drilling capacity has been building as Saudi operators pursue the country’s unconventional and non-associated gas resources. Rig contracting deals of this length provide drilling contractors with multi-year revenue visibility, a feature that has become increasingly valued in a cyclical services market.
Market snapshot
Investors tracking the services space saw modest moves. SLB, listed on the New York Stock Exchange, traded at $57.10, up 0.18% from its previous close of $57.00, with a market capitalization of roughly $84.7 billion. Separately, offshore driller DTI was essentially flat at $2.61, unchanged on the day, valuing the company at about $92.1 million — a reminder of the wide gap in scale between large-cap service providers and smaller drilling names.
Why it matters
Gas drilling in Saudi Arabia has become a key growth avenue for contractors operating in the region. Unlike oil rigs tied to OPEC+ production targets, gas-directed programs — often linked to petrochemical feedstock, power generation, and industrial demand — have continued to attract long-term investment. A five-year award spanning eight rigs suggests sustained drilling activity rather than a short-cycle campaign.
For SLB, the contract reinforces its position in Saudi Arabia, one of its largest international markets, where it supplies drilling technology and integrated services to national operators. For Arabian Drilling, adding eight rigs to its contracted fleet extends backlog and deepens an existing service relationship.
The companies did not disclose contract value in the announcement, and neither firm has stated exact mobilization timelines for the additional units.
What to watch
- Quarterly earnings from both companies for commentary on Middle East rig demand and contract economics
- Disclosure of further Saudi gas program awards or fleet expansion announcements
- Details on rig mobilization and delivery schedules as the contract term begins
Source: original release
