Saudi Arabia’s drilling contractor Arabian Drilling has signed a four-year contract worth about $533 million (SAR 2 billion) with Khafji Joint Operations (KJO) to provide four high-specification offshore jack-up drilling rigs.
The contract will support KJO's offshore drilling operations, with the financial contribution to Arabian Drilling expected to begin at the end of the fourth quarter of 2026.
The award will increase Arabian Drilling's total backlog to a record of about $4.8 billion (SAR 18 billion).
It is the largest single offshore drilling contract awarded by KJO to Arabian Drilling and will increase the company's drilling rig fleet serving KJO by 200%.
“This award is a major strategic achievement for Arabian Drilling and marks a significant expansion of our offshore business. As the largest single offshore drilling contract awarded by KJO to the company, it reflects the strength of our partnership and our proven ability to deliver reliable, resilient and efficient operations at scale.
“The contract raises our backlog to record of $4.8 billion (SAR 18 billion), significantly enhances future revenue and further strengthens the quality and resilience of our earnings profile. This milestone positions Arabian Drilling to capture long-term offshore growth opportunities while creating sustainable value for our shareholders,” said Fahad Albani, Arabian Drilling’s CEO.
Arabian Drilling operates an onshore and offshore drilling fleet and serves customers including Saudi Aramco, KJO, SLB and Baker Hughes.