SANAD Drilling to Restart Two Suspended Rigs in Saudi Arabia by Mid-2026
Joint venture between Saudi Aramco and Nabors receives official go-ahead to resume land-rig operations with contract extensions
The SANAD drilling joint venture, co-owned by Saudi Aramco and Nabors Industries Ltd., has received formal notices to resume operations of two suspended land-rigs in Saudi Arabia, with one set to restart in March 2026 and the other in June 2026. The contracts for both rigs will be extended by a duration equivalent to the period of their suspension, though specific terms and financial details remain undisclosed.
The reinstatement underscores SANAD’s strategic importance in the Kingdom’s local on-shore drilling-services market and aligns with national priorities to maintain production capacity across oil and gas.
While SANAD continues deploying new-build rigs under its large-scale programme, the reactivation of previously idled assets signals improved demand stability in the region.
Nabors’ chairman and chief executive, Anthony G. Petrello, described the return of the rigs as “a welcome event in this key market.” The timing of the relaunch and the contract extensions imply that both the Kingdom and its drilling partners anticipate a more reliable operating environment after a period of suspension.
With SANAD already operating multiple rigs in Saudi Arabia and participating in a significant expansion programme, the reactivation adds to its operational footprint and contributes to Saudi Arabia’s strategy of building local-industry capability and long-term service-provider partnerships.
The two-rig restart provides a near-term boost to SANAD’s rig-count metrics, but also serves as a barometer of broader sector health — signalling that land-drilling services are regaining momentum after a period of contraction.
As the March and June 2026 start-dates approach, industry watchers will assess the performance of the reactivated rigs and whether contract terms reflect improved margins, stronger localisation or enhanced technology deployment under the joint-venture framework.
The reinstatement underscores SANAD’s strategic importance in the Kingdom’s local on-shore drilling-services market and aligns with national priorities to maintain production capacity across oil and gas.
While SANAD continues deploying new-build rigs under its large-scale programme, the reactivation of previously idled assets signals improved demand stability in the region.
Nabors’ chairman and chief executive, Anthony G. Petrello, described the return of the rigs as “a welcome event in this key market.” The timing of the relaunch and the contract extensions imply that both the Kingdom and its drilling partners anticipate a more reliable operating environment after a period of suspension.
With SANAD already operating multiple rigs in Saudi Arabia and participating in a significant expansion programme, the reactivation adds to its operational footprint and contributes to Saudi Arabia’s strategy of building local-industry capability and long-term service-provider partnerships.
The two-rig restart provides a near-term boost to SANAD’s rig-count metrics, but also serves as a barometer of broader sector health — signalling that land-drilling services are regaining momentum after a period of contraction.
As the March and June 2026 start-dates approach, industry watchers will assess the performance of the reactivated rigs and whether contract terms reflect improved margins, stronger localisation or enhanced technology deployment under the joint-venture framework.
