Arab News: RIYADH: Arabian Drilling Co. will resume work on all temporarily suspended offshore rigs by the end of September, it has announced.

The company halted operations on some of its offshore rigs in the Gulf Cooperation Council region in March as a precautionary measure when the conflict involving  Israel, the US, and Iran escalated.

The restart follows a similar announcement by Saudi-listed offshore drilling contractor ADES Holding Co., which said on Aug. 11 that it had received resumption notices for all of its temporarily suspended offshore rigs in the Kingdom.

In a statement, Saudi Arabia’s largest drilling contractor by fleet size said the resumption notices reflect a recovery in offshore market activity and demonstrate its operational readiness, disciplined execution, and ability to respond to rising demand. 

Fahad Albani, CEO of Arabian Drilling, said: “The return of these rigs is a significant milestone for Arabian Drilling and reinforces our confidence in the outlook for the offshore segment.” 

He added: “As our activity continues to improve, we remain committed to maintaining the highest standards of safety, operational performance and service quality, while delivering sustainable growth and long-term value for all our stakeholders.” 

In its own annoucement, ADES added that resumption notices reflect the sustained strength of the company’s offshore market fundamentals, with contracted jackup utilization holding at around 90 percent and day rates remaining firm.

Earnings impact

Arabian Drilling’s offshore suspensions weighed on earnings during the first half of the year. The company reported a net loss of SR24.5 million ($6.53 million) for the six months ending June 30, compared with a net profit of SR82.7 million a year earlier.

In a Tadawul statement, the company said the net loss in the first half was due to a 10.56 percent decline in revenue as certain offshore drilling operations were suspended during the period. 

In the second quarter, the company swung to a net loss of SR31.5 million, from a net profit of SR7.48 million in the same period last year.