Arabian Drilling MoU with Shelf Drilling to support low-cost global expansion

Ghassan Mirdad, CEO of Arabian Drilling Co. (ADC)

Ghassan Mirdad, CEO of Arabian Drilling Co. (ADC), said that the company’s strategic alliance with Shelf Drilling Co. will help expand into new offshore drilling markets in Africa and Asia.

Speaking to Argaam on the sidelines of the Capital Markets Forum (CMF), Mirdad told Argaam that demand for offshore drilling rigs is increasing.

He added that the collaboration with Shelf Drilling, a global leader in the industry, will accelerate expansion at lower costs compared to setting up independent branches in each country.

Mirdad said the company focused on executing unconventional gas projects within Saudi Arabia in recent months, which temporarily delayed overseas expansion. The company has won 13 out of 23 rigs offered in recent tenders, strengthening its position in the gas sector.

Currently, Arabian Drilling owns 60 rigs, including 11 offshore units. It is looking to expand into new markets as demand for offshore drilling rigs rises.

In addition, the company is preparing to participate in new tenders in Kuwait as part of its plans for land-based expansion in the region.

Arabian Drilling has a strong financial position, with SAR 3 billion in loans, including SAR 2 billion sukuk and SAR 1 billion conventional loans, Mirdad added.

This financial strength provides significant flexibility to access additional facilities when needed, the CEO said, adding that the decline in interest rates will lower financing costs, supporting future growth.

Arabian Drilling recently signed a memorandum of understanding with Shelf Drilling to establish a strategic international offshore drilling alliance, Argaam data showed.