Arabian Drilling Enters Oman with Jackup Contract for Masirah Oil and Northern Offshore
Key Takeaways
- •Arabian Drilling signed a contract with Masirah Oil and Northern Offshore covering two firm wells plus two optional wells offshore Oman.
- •The undisclosed contract value amounts to less than 5% of Arabian Drilling's total revenue according to its audited 2025 financial statements.
- •Operations under the new Oman contract are expected to commence before the end of the third quarter of 2026.
- •The Oman award expands Arabian Drilling's footprint beyond its Saudi-concentrated business, in which Saudi Aramco has been the main customer.
- •Earlier this month, Arabian Drilling resumed operations on offshore rigs in Saudi Arabia that had been suspended in March due to Middle East tensions.
Arabian Drilling, Saudi Arabia's largest drilling contractor by fleet size, has signed a contract with a new client in the Gulf Cooperation Council (GCC), marking the company's entry into an additional market within the six-nation bloc, which also includes Saudi Arabia, Oman, the United Arab Emirates, Qatar, Kuwait and Bahrain.
The Saudi contractor, which is listed on the Saudi stock exchange Tadawul, said it signed the agreement with Masirah Oil and Northern Offshore. Masirah Oil is an exploration and production company with operations offshore Oman, a country whose hydrocarbon output has historically come mainly from onshore fields and which, unlike Saudi Arabia, sits outside OPEC. Northern Offshore is an international offshore drilling contractor. The contract covers the drilling of two firm wells in Oman, plus two optional wells. The company did not reveal which jackup rig will be used. Jackup rigs are mobile drilling units commonly used for shallow-water offshore drilling.
The contract value was not disclosed. However, Arabian Drilling said the value is less than 5% of its total revenue as per its audited financial statements for 2025. Operations are expected to commence before the end of the third quarter of 2026.
The new contract follows the successful early completion of Arabian Drilling's first international offshore drilling contract and the redeployment of that jackup rig to another GCC country. For a contractor whose business has been concentrated in Saudi Arabia, where state oil giant Saudi Aramco has been its main customer, the Oman award is a further step in building a footprint beyond its home market.
"As we continue to expand our regional presence, we remain focused on delivering sustainable growth, creating long-term value for our shareholders, and supporting the evolving needs of the energy sector across the region," said Fahad Albani, CEO of Arabian Drilling.
Earlier this month, Arabian Drilling resumed operations on the remaining offshore rigs that had been suspended in Saudi Arabia. The Saudi driller had suspended operations on several offshore rigs in the Gulf back in March due to ongoing tensions in the Middle East.
Source: Splash247
