Arabian Drilling has landed a new four-year contract with Khafji Joint Operations (KJO) for the provision of four high-specification offshore jack-up drilling rigs to support the client’s offshore drilling operations.

The contract is estimated to be worth approximately SAR 2bn, or around US$534mn.

KJO operates across both onshore and offshore areas of the Partitioned Zone, which is located between Saudi Arabia and Kuwait.

It is a joint venture formed between a subsidiary of Saudi Aramco, Aramco Gulf Operations Company, and Kuwait Gulf Oil Company.

“This four-year contract represents the largest single offshore drilling contract awarded by KJO to the company for the provision of four high-specification offshore jack-up drilling rigs to support KJO's offshore drilling operations,” a statement released by Arabian Drilling noted.

It added that the award increases the company’s total backlog to approximately SAR 18bn (US$4.8bn) and expands its offshore fleet operating under contracts with KJO — representing a 200% increase in its drilling rig fleet serving KJO.

KJO’s activities in the Partitioned Zone, previously known as the Neutral Zone, have provided a steady stream of work for industry contractors in recent times.

Flagship projects in the area include the Dorra gas field development, the Khafji oilfield expansion and the Hout gas field.