Riyadh – Mubasher: Saudi Aramco signed two agreements with Nabors Industries Ltd.(“Nabors”) and Rowan Companies plc (“Rowan”) to create two new national champions focused on onshore and offshore drilling, according to a press release on Wednesday.
The onshore and offshore drilling Joint ventures will invest $6bn to $7bn to purchase onshore rigs and offshore jack-ups, manufactured in Saudi Arabia by Saudi Aramco manufacturing joint ventures, which are in the process of being setup, said the company, adding that this collaboration will create an additional 5,000 jobs with an aim to achieve 80% Saudization levels.
Operations are anticipated to start by the second quarter of 2017, the press release indicated.
The onshore joint venture will combine Nabors and Saudi Aramco’s existing onshore drilling operations in Saudi Arabia, with the joint venture covering segments of our current and future onshore oil and gas fields in the Kingdom.
It will initially own 15 contributed rigs (five from Saudi Aramco and 10 from Nabors) and manage the remaining Nabors-owned rigs currently in Saudi Arabia, for a total fleet of 41 rigs.
The total value of initial contributions from both partners through domestic operations, assets, equipment and capital is estimated at over $1 billion dollars.
In addition, the joint venture has committed to a substantial order of newbuild rigs over a 10-year period from an in-Kingdom manufacturing joint venture.
“The new joint ventures mark a major milestone towards the development of a competitive Saudi energy sector, as encapsulated in the company’s In-Kingdom Total Value Add (iktva) program and Saudi Vision 2030”, the press release revealed.
“We look forward to successful partnerships with Nabors and Rowan to drive a best-in-class drilling industry, provide opportunities to manage drilling costs through increased collaboration, drive localization of the energy value chain, and enhance in-Kingdom technical capabilities”, said Amin H. Nasser, Saudi Aramco President and CEO said.
