Arabian Drilling Signs SAR 2 Billion Contract to Operate 8 Land Gas Rigs with SLB
Arabian Drilling Company has signed a new contract worth approximately SAR 2 billion with SLB Schlumberger Middle East to provide eight additional land rigs for gas operations in a five-year deal that will give fresh momentum to drilling services activity in the Kingdom.
According to data published on Monday, September 14, 2026, the contract covers the operation of eight land rigs for gas operations under an integrated projects model. The announcement quickly affected Arabian Drilling’s share price on the Saudi market. Reuters reported that the stock rose about 2.2% during trading, while the Saudi index came under broader pressure.
Image for illustrative purposes — photographed by Aritra Roy / Unsplash.
Five-Year Contract Worth SAR 2 Billion
The new contract represents a long-term operational commitment for Arabian Drilling, ensuring the operation of eight land rigs for five years. Such contracts are important because they give energy services companies greater visibility into future revenue and help raise fleet utilization rates, particularly in the land drilling sector linked to gas projects.
Argaam reported that the agreement was signed with SLB Schlumberger Middle East S.A. to provide eight additional rigs for Gas LSTK operations, while Reuters confirmed the contract’s value of SAR 2 billion, equivalent to approximately $532.5 million.
Why Is the Deal Important for Saudi Arabia’s Energy Sector?
The deal comes as demand continues for gas-related drilling services in the Kingdom. For Arabian Drilling, adding a long-term contract of this size increases its contracted backlog and supports the continued operation of part of its land-rig fleet—an important factor for drilling companies whose performance depends heavily on asset utilization rates.
The agreement with SLB also continues the operational relationship between the two companies on integrated drilling projects. On August 31, Arabian Drilling announced a separate five-year contract with SLB to provide 11 land rigs worth approximately SAR 3 billion, according to a previous official disclosure on the Saudi Exchange. The new contract reflects continued contracting activity in the sector in recent weeks.
Stock Moves Against the Market Trend
The announcement affected Monday’s trading session, with Reuters reporting that Arabian Drilling’s share price rose 2.2% after the contract was announced, while the Saudi index fell about 0.3%. A stock move in a single session does not necessarily represent the contract’s full value to financial results, but it indicates that investors responded to the addition of several years of new business.
The timing of the start of operations and the actual utilization rates of the rigs will remain important factors when assessing the deal’s financial impact in future periods. The amount of recognized revenue and the operating margins associated with the contract will also be among the indicators investors monitor when the company releases subsequent financial results.
Expanding Contract Portfolio
The new contract adds eight rigs to Arabian Drilling’s recent contracts and strengthens the company’s presence in land drilling services for gas. With a five-year term, the deal goes beyond its short-term impact on the share price by providing greater visibility into the company’s future business.
For Saudi Arabia’s energy sector, the continued signing of land-rig contracts reflects ongoing activity across the gas services chain, from rig operations to the related technical and logistical services.
