Resumption notices lift the offshore fleet back into service
The largest onshore and offshore drill‑ship operator in Saudi Arabia, Arabian Drilling, has been issued a formal notice to restart the remaining rigs it halted earlier this year. The company says the move reflects “continued recovery in offshore market activity” and anticipates utilisation of its entire offshore fleet reaching 100 % by the close of Q3 2026.
In March, Arabian Drilling suspended several Gulf‑based jackups as a precautionary response to escalating regional tensions. The suspension applied only to offshore assets; its land rig inventory of 39 units kept operating uninterrupted. After a staggered restart that saw three rigs return to work last month, the firm now plans to bring the rest back online.
ADES follows suit, confirming full‑fleet comeback
Following Arabian Drilling’s announcement, Saudi driller ADES has also secured resumption orders for all offshore units it had paused. The company stresses that the return “reflects sustained strength of offshore market fundamentals,” noting contracted jackup utilisation already sits near 90 % and day rates remain firm.
ADES operates a fleet of 30 jackups in Saudi Arabia, exclusively under contract to Aramco. Beyond domestic waters, its presence extends to Qatar—where the Admarine 691 serves TotalEnergies and the Aquamarine and Sapphire drillers work for NOC—as well as offshore contracts off Egypt, Nigeria, India, Malaysia, Indonesia and Thailand.
Financial outlook and market implications
The two firms attribute the earlier suspensions to “event‑driven” rather than demand‑driven factors, describing them as short‑term safety precautions. ADES reaffirmed its full‑year 2026 EBITDA guidance of US$1.2 billion to US$1.3 billion (SAR 4.50–4.87 billion). Arabian Drilling did not disclose a revised earnings forecast but expects the renewed activity to bolster offshore revenue streams.
Leadership comments underline confidence
Fahad Albani, CEO of Arabian Drilling, called the rig return “a significant milestone” that reinforces confidence in the offshore segment’s outlook. Similarly, ADES chief executive Mohamed Farouk described the regional easing as “encouraging,” adding that the timely fleet re‑engagement supports a steady, broad‑based resurgence across Middle Eastern drilling operations.
What this means for operators
The coordinated restart of Saudi offshore jackups signals to vessel owners and service providers that demand for support vessels—tugs, supply ships, crew transfer boats—and related logistics is set to climb sharply as utilisation pushes toward full capacity. Operators should therefore anticipate higher charter rates and tighter berth availability at Gulf ports, while also preparing to meet heightened safety and compliance standards demanded by the re‑activated rigs.