Arabian Drilling signs USD 800m five-year land rig contract with SLB
Eleven land rigs will support gas LSTK operations from Q3 2026 under the agreement.
Arabian Drilling signs USD 800m five-year land rig contract with SLB
Arabian Drilling Company signed a five-year contract valued at approximately USD 800m with SLB on 8 January 2025 for the provision of 11 land rigs for gas-related lump-sum turnkey operations. The contract is expected to contribute to Arabian Drilling's revenues from the third quarter of 2026 and will support utilisation of the company's land drilling fleet throughout the five-year term, according to a company statement published by ME Construction News.
The 11 land rigs are units currently deployed under a previous gas LSTK project with SLB. The new agreement extends the deployment of these rigs for an additional five years beyond the completion of the earlier project. The contract will run through 2031 based on the stated five-year duration and the Q3 2026 revenue start date.
SLB relationship and fleet utilisation impact
SLB is one of the major shareholders of Arabian Drilling, making it a related party to the transaction. The company stated the agreement would help maintain utilisation of its land rig fleet and provide revenue visibility over the duration of the contract. The 11 rigs represent a portion of Arabian Drilling's land drilling fleet, which will remain deployed under the new contract terms following completion of the previous LSTK project.
Arabian Drilling has also secured a contract with a new GCC client, extending its regional presence following the early completion of its first international offshore drilling campaign, according to a separate announcement reported by Oil & Gas Middle East.
Contract structure and revenue timeline for gas LSTK operations
The contract covers gas-related lump-sum turnkey operations, a project delivery method in which the contractor assumes responsibility for completing defined scope at a fixed price. Revenue contribution is scheduled to begin in the third quarter of 2026, with the five-year term providing Arabian Drilling with contracted revenue through 2031. The USD 800m contract value represents the total expected revenue over the five-year period, averaging USD 160m per year across the 11 land rigs deployed.
Sources
- ME Construction News · Arabian Drilling signed a 5-year contract worth approximately USD 800m with SLB for provision of 11 land rigs for gas LSTK operations, with revenue contribution expected from Q3 2026. SLB is a major shareholder of Arabian Drilling. The rigs are units currently deployed under the previous Gas LSTK pr
- Oil & Gas Middle East · Arabian Drilling secured a contract with a new GCC client following completion of its first international offshore drilling campaign
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