The Middle East’s jackup drilling fleet has continued to contract in recent months, as additional suspensions and contract terminations tied to Saudi Arabia’s offshore slowdown prompt rigs to exit the region or remain idle.

Market data indicate that the number of active jackups operating in the Gulf has fallen steadily since Saudi authorities instructed the national oil company earlier this year to pause expansion plans aimed at raising crude production capacity.

The suspension of several offshore drilling contracts has had a ripple effect across regional operators, with a number of rigs either released early from long-term charters or left without follow-on work.

Contractors have responded by stacking units, seeking alternative markets in Southeast Asia and West Africa, or negotiating reduced day rates to preserve utilisation.

Industry analysts note that the decline in fleet size reflects both the Saudi policy shift and broader capital discipline across upstream producers.

Saudi Arabia’s decision to halt its planned increase in maximum sustainable capacity from thirteen million barrels per day has translated into fewer development wells and deferred offshore campaigns.

While production levels remain robust, the reduced need for incremental drilling has directly impacted demand for jackup rigs, which are primarily deployed in shallow-water fields across the Gulf.

The contraction has intensified competition among drilling contractors operating in the Middle East, historically one of the most stable and lucrative offshore markets.

Some companies have already redeployed modern, high-specification rigs to other regions with firmer demand, while older units face prolonged idle periods.

Market observers suggest that unless offshore investment rebounds or new projects are sanctioned, fleet rationalisation may continue through the remainder of the year.

Despite the near-term pressure, industry executives maintain that the Gulf remains a strategically important basin with long-term development potential.

However, in the immediate term, the cumulative effect of Saudi suspensions has reshaped utilisation patterns and reduced the overall footprint of jackup rigs across the Middle East.