Action Energy Secures KOC Contract Worth KWD 62.1 Million to Supply Drilling Rigs Over Five Years

Kuwait | EcoPulse24

Action Energy Company announced that its subsidiary, Sun Drilling – WLL, has secured a contract from Kuwait Oil Company (KOC) to supply and operate five onshore drilling rigs, in addition to providing well intervention and support services. The contract duration is five years.

According to the official disclosure issued in line with the requirements of the Capital Markets Authority of Kuwait, the total contract value is approximately KWD 62.14 million, representing a significant long-term operational addition to the company’s drilling and energy services portfolio.

Action Energy clarified that the financial impact of the contract will begin to appear starting from the fourth quarter of 2026, also confirming that no related parties are involved in the awarding process.

This contract aligns with KOC’s programs to enhance its operational capabilities and improve drilling and development efficiency in its oil fields, relying on specialized local and regional providers of onshore drilling services.

EcoPulse24 Analysis

This contract marks a significant development in Action Energy's business portfolio for the following reasons:

• The five-year duration provides the company with clearer visibility into future revenues and greater cash flow stability.

• The contracting party (KOC) reduces credit and execution risk, enhancing the quality of revenues.

• Deferring financial impact to Q4 2026 means the effect will not be immediate on short-term financials, but it supports medium- and long-term valuation.

• The contract strengthens the company’s positioning in Kuwait’s onshore drilling services sector, which is closely tied to expansion and oil production plans.