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Saudi Offshore Drilling Resumes as Rigs Restart Operations
🇸🇦 Saudi Arabia /Energy & Infrastructure

Saudi Offshore Drilling Resumes as Rigs Restart Operations

From Asharq Al-Awsat · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Saudi Arabia is gradually restoring operational capacity in its offshore drilling sector.
  • ADES Holding and Arabian Drilling announced the resumption of operations at suspended offshore rigs.
  • The restart is attributed to an improvement in regional developments, not weak demand.

Saudi Arabia's offshore drilling sector is showing signs of recovery as ADES Holding and Arabian Drilling have announced the resumption of operations at previously suspended offshore rigs. This move brings a significant portion of the offshore fleet back into service, boosting visibility for drilling activities and reviving demand across a network of suppliers and service providers.

The development reflected an improvement in the regional situation and the readiness of the company’s teams to resume operations, while stressing that the safety of employees and assets remained its top priority.

— Mohamed Farouk, ADES Holding CEOThe CEO of ADES Holding commented on the reasons for resuming operations and the company's priorities.

ADES Holding, backed by Saudi Arabia's Public Investment Fund, was the first to report receiving notices to resume operations at all its offshore rigs. The company stated that its contracted jack-up rigs are now operating at over 90% utilization, supported by strong day rates. ADES attributed the suspensions to regional developments rather than weak market demand, highlighting the resilience of the Gulf offshore drilling market.

Following ADES, Arabian Drilling announced similar notices to restart its remaining suspended offshore rigs. The company anticipates its offshore fleet utilization will reach 100% by the end of the third quarter of 2026. This restart signifies a continued recovery in offshore drilling activity and marks an important milestone for the company's operational readiness and ability to meet market demand.

the suspensions stemmed from regional developments rather than weak demand.

— ADES HoldingADES Holding clarified that the temporary suspension of its rigs was due to regional events, not a lack of demand.

Both companies emphasized that the suspensions were precautionary measures taken due to regional conditions. The resumption of these operations is expected to restore demand for essential services, including transport, port operations, warehousing, equipment supply, maintenance, and engineering services, which are critical for offshore drilling activities.

full fleet utilization marking an important milestone that would strengthen its operational readiness and ability to meet market demand.

— Arabian DrillingArabian Drilling highlighted the significance of achieving full fleet utilization.
DistantNews Editorial

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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