Arabian Drilling suspends 2 rigs with Aramco, won’t extend third contract

Arabian Drilling Co. (ADC) and Saudi Aramco finalized their discussions on the suspension of three offshore drilling platforms, as announced previously.

The statement clarified that business contracts for two offshore drilling platforms were suspended for a period of up to 12 months.

In addition, an agreement was reached not to extend the current contract for a third platform that expires in June 2024, due to high capital expenditures necessary to extend the contract.

ADC is currently in discussions with various parties, including those outside Saudi Arabia, to find new opportunities for the suspended offshore platforms.

ADC expected an increase in revenues on an annual basis, in line with the previously announced indicative expectations for 2024, with a value ranging between SAR 3.6 billion and SAR 3.9 billion.

This was despite lower offshore drilling rig activity, which is expected to impact revenues at approximately SAR 190 million.

ADC’s revenues will be supported by the start of three unconventional onshore drilling rigs, whose contracts began before the planned start date, while the remaining seven rigs are projected to begin their operations gradually during Q3 2024. In April, ADC announced that it discussed its options with Saudi Aramco regarding suspending contracts for three offshore drilling rigs, Argaam reported.