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Arab Drilling Inks $366M Aramco Contract Extensions

Four drilling platform contracts between **Arab Drilling Company** and **Aramco** have been extended, totaling $366 million. This move significantly bolsters **Arab Drilling’s** business outlook, setting the stage for future growth.

Contract Details

**Arab Drilling** announced it successfully extended four drilling platform contracts with **Aramco**, with terms ranging from one to ten years. The total value of these extensions is 1.374 billion riyals ($366 million USD).

According to the company’s statement to Tadawul, this extension increases the current backlog to 11.1 billion riyals. The financial impact of the extensions is projected to materialize starting in the third quarter of 2025.

Strategic Renewal

The renewal aligns with **Arab Drilling’s** strategy to prolong the operational lifespan of its drilling platforms. These platforms, numbering 22 as of March 31, 2025, were slated for decommissioning this year.

The company had previously extended contracts for drilling platforms for ten years. Discussions regarding further extensions are ongoing for the remaining platforms. Globally, demand for drilling services is expected to increase, with the market projected to reach $131.7 billion by 2029 (Fortune Business Insights).

Earlier Agreement

Last May, **Arab Drilling Company** disclosed the extension of long-term contracts for two drilling platforms with **Saudi Aramco**, valued at 1.067 billion riyals over a 10-year period.