What ARO Drilling does

ARO Drilling is a private offshore drilling contractor that owns, operates, and manages a fleet of high-specification and premium jack-up drilling rigs. The company is structured as a 50/50 joint venture between Valaris Limited (NYSE: VAL), a major international offshore drilling contractor, and Saudi Aramco, the Saudi Arabian state-owned national oil company. ARO Drilling is headquartered in Dammam, Saudi Arabia, and its operating geography is concentrated in Saudi Arabian waters, where it serves Saudi Aramco under long-term drilling contracts.

The company's core product is contract offshore jack-up drilling services, with its fleet including the Kingdom 1 and Kingdom 2 newbuild jack-up rigs delivered in late 2023 and early 2024, financed via a $359 million loan secured in October 2023. ARO Drilling monetizes through long-term, project-negotiated drilling contracts with Saudi Aramco rather than spot-market dayrates, leveraging Valaris's operational and rig-management expertise alongside Aramco's committed offtake and market access. Revenue model is described as one-time license-style contract payments for drilling services, though pricing is not publicly disclosed.

The company employs between 1,001 and 5,000 people and is positioned as a captive, capital-intensive drilling arm of the Saudi Aramco supply chain. Its competitive position is reinforced by the JV structure itself: Saudi Aramco is simultaneously the anchor customer, the equity partner, and the host-country regulator, which provides contract visibility but also creates near-total revenue concentration risk. No standalone revenue figures are publicly disclosed for ARO Drilling as a private JV entity.

Name

ARO Drilling

Legal name

ARO Drilling

Website

https://arodrilling.com

Company type

Private

Founded year

2017

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

ARO Drilling is a private 50/50 joint venture between Valaris Limited and Saudi Aramco that operates a fleet of high-specification jack-up drilling rigs under long-term contracts serving Saudi Aramco in Saudi Arabian waters.

Ownership category

akta.pro rank

Product category

Offshore Drilling Services

NAICS

Drilling Oil and Gas Wells (213111), Mining and Oil and Gas Field Machinery Manufacturing (33313), Oil and Gas Extraction (2111)

SIC

Drilling Oil & Gas Wells (1381), Oil & Gas Field Services, Nec (1389), Oil & Gas Field Machinery & Equipment (3533)

akta.pro primary industry

Drilling & Workover Rigs (Land & Offshore) (EUALABAA)

Keywords

• Offshore drilling services
• Jack-up drilling rigs
• Contract drilling operations
• Oil and gas drilling
• Offshore drilling contractor

Headquarters

HQ city

Dammam

HQ country

Saudi Arabia

HQ region

Middle East

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Supply Chain, Technology or R&D

Revenue model

1. Offshore Drilling Contracts: Revenue generated through long-term contracts with major oil companies for offshore jack-up drilling services. ARO Drilling operates a fleet of jack-up rigs under contract to Saudi Aramco.

Distribution channels1 record

Core offering

ARO Drilling owns, operates, and manages a fleet of high-specification and premium jack-up drilling rigs, delivering contract drilling services for offshore oil and gas exploration and production. The company primarily serves Saudi Aramco in Saudi Arabian waters, with the newbuild Kingdom 1 and Kingdom 2 rigs expected to commence operations under contract with Saudi Aramco in late 2023 and early 2024 respectively.

Product overview

ARO Drilling is a joint venture between Valaris and Saudi Aramco that operates a fleet of offshore jack-up drilling rigs. The company provides contract drilling services, primarily serving Saudi Aramco in Saudi Arabia. The fleet includes the Kingdom 1 and Kingdom 2 jack-up drilling rigs, which were financed through a $359 million loan and are contracted to begin operations with Saudi Aramco in late 2023 and early 2024 respectively.

Differentiator

Problem solved

Functional benefit

Products and services

• Kingdom 1 Jack-Up Drilling Rig High-specification offshore jack-up drilling rig owned and operated by ARO Drilling for offshore oil and gas exploration and production, contracted to Saudi Aramco.
• Kingdom 2 Jack-Up Drilling Rig High-specification offshore jack-up drilling rig owned and operated by ARO Drilling for offshore oil and gas exploration and production, contracted to Saudi Aramco.
• Contract Jack-Up Drilling Services Long-term contract drilling services delivered to national oil companies (primarily Saudi Aramco) using ARO Drilling's fleet of high-specification jack-up rigs for offshore exploration and production in Saudi Arabian waters.

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered core.

• ValariscoreStrategic or Co-development PartnerValaris Limited, a major offshore drilling contractor, formed a 50/50 joint venture with Saudi Aramco to create ARO Drilling. Valaris contributes operational expertise and drilling fleet management while the JV provides access to the Saudi Arabian offshore drilling market.
• Saudi AramcocoreStrategic or Co-development PartnerSaudi Aramco, the Saudi Arabian national oil company, is the 50% joint venture partner in ARO Drilling. Aramco provides committed drilling contracts and market access in Saudi Arabian waters while benefiting from access to modern jack-up drilling fleet.

Scale indicators2 records

Recent moves4 records

Expansion highlights3 records

Direct peers

• Valaris Limited: 50/50 JV partner and one of the world's largest offshore drilling contractors with a global jack-up and floaters fleet. Directly comparable as ARO's parent operating partner, with overlapping rig categories and customer profile.
• Noble Corporation: Global offshore drilling contractor with a large jack-up and semi-submersible fleet. Competes for the same high-spec jack-up tenders in the Middle East and serves similar NOC and IOC customers.
• Borr Drilling: Premium jack-up drilling specialist with a young, high-spec fleet focused on international and Middle East markets. Directly competes with ARO for premium jack-up day rates and Saudi tender opportunities.
• Shelf Drilling: One of the largest jack-up rig contractors in the Middle East and India, with deep operational presence in Saudi Arabia and a focus on shallow-water drilling for NOCs. Direct competitor for Saudi jack-up contracts.
• ADES Group: Saudi Arabia-headquartered offshore and onshore drilling contractor with a large jack-up fleet serving Saudi Aramco and other regional NOCs. Closest regional competitor given shared geography and Aramco customer base.
• Seadrill: International offshore drilling contractor with a diversified fleet of jack-ups, semi-submersibles, and drillships. Competes for high-value global tenders including Middle East work.

Broad incumbents

• Transocean: Global offshore drilling incumbent with a primarily ultra-deepwater floaters fleet, but also operates high-spec jack-ups. A broader peer given its scale and customer overlap, even though its focus is deeper water.
• Diamond Offshore: Established offshore drilling contractor with floaters and a smaller jack-up fleet. Comparable on business model and customer base, though its core focus is ultra-deepwater rather than jack-up.

Regional players

• Abu Dhabi Drilling (Adesco): Regional jack-up and drilling services provider historically focused on Abu Dhabi and GCC NOC customers. Comparable offering and adjacent geography though primarily serves ADNOC rather than Aramco.

Others

• Aramco (Drilling & Workover In-House Operations): Saudi Aramco's in-house drilling organization is both ARO's sponsor/partner and a potential competitive force as Aramco insources more drilling activity. Relevant as the parent counterparty and ecosystem participant.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/AroDrilling

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about ARO Drilling