Arabian Drilling has secured new land rig contract extensions in Saudi Arabia, strengthening its backlog and supporting higher fleet utilisation through 2026.
Arabian Drilling has strengthened its operational outlook after securing three new contract extensions for land rigs in Saudi Arabia, adding a total of 25 active rig years to its backlog. The move reinforces long-term deployment across the company’s onshore fleet at a time when drilling activity in the Kingdom remains resilient.
Of the three rigs covered by the latest extensions, one is already operating, while a second rig is expected to return to service by the end of January. A third rig, which is currently suspended, is scheduled to resume operations during 2026. Together, these contracts enhance visibility on future revenues and ensure continuity across key assets.
The latest awards bring the total number of recently extended contracts to seven. These extensions follow earlier contract announcements made in November 2025 and underline sustained demand for land drilling capacity in Saudi Arabia. By securing longer-term commitments, the company is positioning itself to maintain stable utilisation levels despite fluctuations in regional drilling activity.
Arabian Drilling said that several notices to resume operations issued in late 2025 are expected to further support utilisation across its fleet. In addition, the start of its first international drilling contract within the Gulf Cooperation Council marks an important milestone, expanding the company’s footprint beyond its domestic market.
Looking ahead, Arabian Drilling expects these developments to significantly lift overall fleet performance. The contractor projects full utilisation of its offshore rigs by the second quarter of 2026, while total fleet utilisation, including land and offshore units, is forecast to rise to around 80 percent. This outlook reflects improving market conditions and the impact of recently secured work.
The contract extensions also highlight continued confidence from clients in the company’s operational capabilities. With Saudi Arabia maintaining a strong focus on energy security and upstream investment, demand for reliable drilling services remains steady, supporting contractors with established local experience.
As activity levels recover and international operations ramp up, Arabian Drilling’s growing backlog and improving utilisation rates signal a more robust earnings profile heading into 2026. The latest extensions strengthen the company’s position in the Saudi onshore market while laying the groundwork for broader regional growth.
