عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Aramco Extends $800 Mn Contracts for Arabian Drilling

A drilling rig belonging to Arabian Drilling (Arabian Drilling's website)
A drilling rig belonging to Arabian Drilling (Arabian Drilling's website)
TT
TT

Saudi Aramco Extends $800 Mn Contracts for Arabian Drilling

A drilling rig belonging to Arabian Drilling (Arabian Drilling's website)
A drilling rig belonging to Arabian Drilling (Arabian Drilling's website)

Saudi Aramco extended several contracts worth close to $800 million with the Arabian Drilling Company (ADC) that were due to expire in 2023.

The contracts have been extended from three to ten years, the company said in a statement.

The company noted that the financial impact of this extension is expected to be reflected in the results of the third quarter of the fiscal year 2023.

The Arabian Drilling, listed on Tadawul, specializes in onshore and offshore drilling activities in the Kingdom.

It announced in July that it had signed long-term contracts with Aramco to provide it with ten new-build land rigs with full crews to conduct drilling and exploration operations within Aramco's unconventional program.

The ADC signed a similar contract with the Saudi oil giant in January for five years to provide it with one offshore drilling platform exceeding SR650 million.

The company's profits grew 36 percent in the first half of this year to reach SR282 million, after it increased by 23 percent in the second quarter to SR140 million.

Most Viewed

 
 
Business

Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
TT
TT

Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir

Lebanese government bonds extended their three-month-long rally on Thursday as the crisis-ravaged country's parliament voted in a new head of state for the first time since 2022.

Lebanese lawmakers elected army chief Joseph Aoun as president. It came after the failure of 12 previous attempts to pick a president and boosts hopes that Lebanon might finally be able to start addressing its dire economic woes.

The country's battered bonds have almost trebled in value since September, when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming its political paralysis.

According to Reuters, most of Lebanon's international bonds, which have been in default since 2020, rallied after Aoun's victory was announced to stand 1.3 to 1.7 cents higher on the day and at just over 16 cents on the dollar.

They have risen almost every day since late December, although they remain some of the lowest-priced government bonds in the world, reflecting the scale of Lebanon's difficulties.

With its economy and financial system still reeling from a collapse in 2019, Lebanon is in dire need of international support to rebuild from the conflict, which the World Bank estimates to have cost the country $8.5 billion.

Hasnain Malik, an analyst at financial research firm Tellimer said Aoun's victory was "the first necessary step on a very long road to recovery".

Malik said Aoun now needs to appoint a prime minister and assemble a cabinet that can retain the support of parliament, resuscitate long-delayed reforms and help Lebanon secure international financial support.

The 61-year old Aoun fell short of the required support in Thursday's first round of parliamentary voting and only succeeded in a second round, reportedly after a meeting with Hezbollah and Amal party MPs.

"That presents significant ongoing risk to any new PM and cabinet, which need to maintain the confidence of a majority of parliament," Malik said.