Saudi and UAE rig owner duo pooling resources to widen offshore drilling horizons

UAE-headquartered shallow water offshore drilling contractor Shelf Drilling (SHLF) has decided to join forces with Arabian Drilling, the largest onshore and offshore drilling company in Saudi Arabia by fleet size, to expand their offshore drilling footprint.

The rig owners’ memorandum of understanding (MoU) aims to form a strategic alliance between the two players to deploy some of Arabian Drilling’s premium jack-up rigs internationally and expand the reach and capabilities of both companies.

Thanks to this alliance, Arabian Drilling will gain access to Shelf Drilling’s international operating platform and diverse customer relationships, while the latter will seek to use some of the former’s high-specification jack-up rigs to meet specific contract requirements.

Greg O’Brien, CEO of Shelf Drilling, highlighted: “The alliance marks a significant step in our commitment to delivering operational excellence and best-in-class services to our customers.

“By leveraging Shelf Drilling’s extensive international presence, unique focus on safety, and fit-for-purpose business strategy with Arabian Drilling’s premium jack-up rigs, we are well-positioned to unlock new opportunities in our core markets and drive value for our stakeholders.”

The duo believes that combining resources, technical expertise, and operational excellence will position them to deliver “outstanding services” to customers and increase the competitiveness of both companies.

Ghassan Mirdad, CEO of Arabian Drilling, commented: “The Alliance gives us a clear path to execute our strategy to develop an international footprint. Shelf Drilling’s expertise and international presence will bring our advanced, high-specification rigs to new markets.

“We see a strong cultural fit and a common focus on the highest Health, Safety and Environmental standards. The Alliance is an exciting new opportunity to create value.”

The duo’s move comes after multiple rig owners received temporary suspensions of operations in the Middle East last year for one or more jack-ups in their fleets working for Aramco. Aside from Arabian Drilling and Shelf Drilling, Valaris’ ARO Drilling, ADES, COSL, and Borr Drilling were also presented with contract suspensions.