Arabian Drilling, Aramco extend land rig contract for SAR 440M

Arabian Drilling Co.'s land rig

Arabian Drilling Co. (ADC) extended a long-term contract for one of its Saudi Aramco land rigs for SAR 440 million.

The extension is for 10 years starting from the expiration of the current contract during the fourth quarter of 2024, the company said in a statement to Tadawul.

There are no related parties to the deal.

Commenting on the extension, CEO Ghassan Mirdad said it builds on the company’s long-term partnership with Aramco.

The material backlog of approximately SAR 440 million will support ADC’s future growth.

ADC generated SAR 2 billion in revenue from land rigs, accounting for 57.8% of the company’s total topline in 2023, according to Argaam data.