Arabian Drilling announces record orders of 12.7 billion rials

Arabian Drilling, a company specializing in the supply of drilling platforms for the oil projects and gas in Saudi Arabia and the neutral zone shared with Kuwait, recently announced a record backlog of orders worth 12.7 billion rials, equivalent to around $3.39 billion, as of September 30. This news reflects the steady growth of the oil and gas industry in the region.

Long-term contracts for drilling platforms

The company currently manages a fleet of 47 active platforms, with an average remaining contract duration of 25 years per platform. The long duration of these contracts testifies to the trust customers place in Arabian Drilling to provide reliable, high-quality drilling services.

Expansion and growth for Arabian Drilling

One of the highlights of this record demand was the order placed by Saudi Aramco, the Saudi oil giant, for 10 new unconventional platforms. In addition, Arabian Drilling has obtained contract extensions from Aramco, including a 10-year extension for an offshore platform already in operation. In addition, three offshore platforms started their 5-year contracts in July.

Arabian Drilling CEO Ghassan Mirdad stressed the importance of focusing on delivering the new package of 10 unconventional platforms over the next few quarters. This expansion is essential to meet pending demand and the needs of new customers, particularly in view of the development of the unconventional Jafurah gas field.

Solid financial performance in the third quarter

Other Arabian Drilling customers include major industry players such as Baker Hughes, Al-Khafji Joint Operations in the neutral zone shared by Saudi Arabia and Kuwait, and SLB, formerly known as Schlumberger. These solid partnerships help to strengthen Arabian Drilling’s market position.

In terms of financial performance, the company announced third-quarter sales of 920 million rials, representing a significant 16% year-on-year increase. In addition, prices for drilling services have also risen, particularly in the offshore segment.

It’s worth noting that the company didn’t provide specific details on the rates charged, but in March it had indicated that the average daily rate in 2022 for onshore platforms was in the mid-$30,000 range, while for offshore platforms it was in the high $90,000 range.