Saudi Arabian drilling contractor Arabian Drilling has secured three new contract extensions from Aramco for onshore rigs, valued at 1.4 billion Saudi riyals ($373.3 million). This follows four previous extensions announced in November 2025, bringing the total to seven extensions in recent months. The combined value of these agreements is 3.4 billion Saudi riyals, adding 55 committed rig years to the company's backlog.

Contract Details and Operational Status

The three latest extensions are for periods of 10, 10, and 5 years. Currently, one of these rigs is operational, a second is expected to become operational by the end of January, and the third is suspended with operations anticipated to resume in 2026. The latest three extensions alone contribute 25 active rig years to the backlog.

Market Context

The contract extensions are driven by Aramco's significant investments aimed at maintaining production at major oil fields and expanding its gas production capacity. This strategic focus has created strong, sustained demand for drilling rigs within Saudi Arabia.