Arabian Drilling to Reactivate Two Offshore Jack-Up Rigs with Saudi Aramco in Early 2026
Resumption notices mark sharp rebound in Saudi offshore drilling utilisation after widespread contract suspensions
Saudi Arabia’s drilling contractor Arabian Drilling has received formal notice from Saudi Aramco to recommence operations on two suspended offshore jack-up rigs, with work scheduled to restart at prevailing market day-rates in the first quarter of 2026. The move lifts offshore segment utilisation to 100 per cent in the second quarter of that year.
The recall follows a spring 2024 suspension by Aramco of contracts for three of Arabian Drilling’s jack-ups, a decision that formed part of a broader trend in which more than twenty rigs across eight operators were pulled out of service amid strategic capacity adjustments.
At the time, Arabian Drilling indicated the suspensions would last up to twelve months.
In tandem with the resumption announcement, Arabian Drilling revealed that it had successfully renewed twenty-two of twenty-four rig contracts expiring in 2025, covering eleven land rigs and one jack-up assigned to the Khafji Joint Operations offshore cluster, bolstering backlog and revenue visibility.
Chief Executive Ghassan Mirdad described the upcoming re-activations as “an encouraging signal” for both the company and the broader energy sector in Saudi Arabia.
Industry analysts view the development as emblematic of growing confidence in Saudi offshore drilling activity ahead of the Kingdom’s 2030 energy agenda.
The turnaround comes amid a global jack-up fleet pressured by contract suspensions and shifting investment patterns; yet sources now anticipate a rebound in demand as idle rigs are redeployed and activity normalises by 2026.
For Arabian Drilling, the restart enhances operational throughput and helps restore earnings in its high-margin offshore segment.
The firm remains the third-largest offshore driller in the Kingdom, and the resumption places it well into execution mode for an expected uplift in rigs working for the national oil company.
The company emphasised that the two rigs will return under standard day-rate terms, not special standby rates, while work commencement remains subject to final mobilisation and contract formalities.
Overall, the development signals a notable step in Saudi Arabia’s broader pursuit of drilling efficiency, capacity renewal and energy-sector momentum heading into 2026.
The recall follows a spring 2024 suspension by Aramco of contracts for three of Arabian Drilling’s jack-ups, a decision that formed part of a broader trend in which more than twenty rigs across eight operators were pulled out of service amid strategic capacity adjustments.
At the time, Arabian Drilling indicated the suspensions would last up to twelve months.
In tandem with the resumption announcement, Arabian Drilling revealed that it had successfully renewed twenty-two of twenty-four rig contracts expiring in 2025, covering eleven land rigs and one jack-up assigned to the Khafji Joint Operations offshore cluster, bolstering backlog and revenue visibility.
Chief Executive Ghassan Mirdad described the upcoming re-activations as “an encouraging signal” for both the company and the broader energy sector in Saudi Arabia.
Industry analysts view the development as emblematic of growing confidence in Saudi offshore drilling activity ahead of the Kingdom’s 2030 energy agenda.
The turnaround comes amid a global jack-up fleet pressured by contract suspensions and shifting investment patterns; yet sources now anticipate a rebound in demand as idle rigs are redeployed and activity normalises by 2026.
For Arabian Drilling, the restart enhances operational throughput and helps restore earnings in its high-margin offshore segment.
The firm remains the third-largest offshore driller in the Kingdom, and the resumption places it well into execution mode for an expected uplift in rigs working for the national oil company.
The company emphasised that the two rigs will return under standard day-rate terms, not special standby rates, while work commencement remains subject to final mobilisation and contract formalities.
Overall, the development signals a notable step in Saudi Arabia’s broader pursuit of drilling efficiency, capacity renewal and energy-sector momentum heading into 2026.
