Arabian Drilling Company has signed a contract with Masirah Oil Limited and Northern Offshore Ltd to drill two firm wells and two optional wells offshore Oman, the Saudi-listed drilling contractor announced on August 19.

Arabian Drilling, Saudi Arabia's largest drilling contractor by fleet size, said the contract follows the early completion of its first international offshore drilling contract and subsequent redeployment of the jack-up rig to another GCC country. Operations under the new contract are expected to begin before the end of the third quarter of 2026.

The company did not disclose the monetary value of the agreement, which will remain in force until completion of the drilling operations. The financial impact is expected to be reflected in Arabian Drilling's 2026 results.

Fahad Albani, chief executive officer of Arabian Drilling, said securing the contract after the successful completion of the company's first international offshore assignment ahead of schedule marked an important milestone in its growth strategy.

“As we continue to expand our regional presence, we remain focused on delivering sustainable growth, creating long-term value for our shareholders, and supporting the evolving needs of the energy sector across the region,” Albani said.

The contract represents a new phase in the development of Block 50, an offshore concession located off Oman's east coast in the Arabian Sea and operated by Masirah Oil. The company holds a 100% interest in the block, where it has developed the Yumna oil field. First oil from Yumna was achieved in February 2020, followed by approval of the field development plan and declaration of commerciality in July of that year.

Masirah Oil has been seeking to sustain production from Yumna and increase recovery from the field. Cumulative production had reached about 9.07 mn stock-tank barrels by the end of 2024. The operator had previously outlined plans for a three-well development drilling programme in 2026, although the timing of the programme has been subject to subsequent updates.

The latest drilling contract could therefore support renewed development activity at Block 50 as Masirah Oil seeks to offset declining production. Gross production from the concession averaged about 742 bpd in March 2026, down from 854 bpd in January, according to company updates.

For Arabian Drilling, the Oman contract expands its international operating footprint beyond Saudi Arabia and demonstrates the ability to redeploy offshore assets across regional markets. The company said the agreement would support backlog growth, improve future revenue visibility and strengthen its long-term earnings profile.