Saudi Arabia’s Arabian Drilling and Oslo-listed Shelf Drilling announced on 18 February that they have signed an MoU to cooperate internationally. Under the agreement, Arabian Drilling will provide access to some of its “premium offshore rigs” for development overseas, with Shelf Drilling using its international footprint to secure contracts.
The announcement comes a year after Saudi Aramco announced that it had cancelled its plans to expand crude oil capacity by 1mn b/d (MEES, 2 February 2024). Subsequently, Saudi Aramco suspended a number of rig contracts with firms including with Arabian Drilling (MEES, 12 April 2024). The kingdom’s offshore rig count has subsequently dropped from 16 in January 2024 to just nine last month, according to Baker Hughes data. This week’s MoU provides an opportunity for the firm to monetize its idling rigs. (CONTINUED - 129 WORDS)