Saudi Aramco inks drilling JVs with Nabors, Rowan
Saudi Aramco’s joint venture agreements with Nabors Industries and Rowan Companies will see approximately $13bn invested into offshore and onshore drilling
Saudi Aramco has signed joint venture (JV) agreements with Nabors Industries and Rowan Companies.
The kingdom-based energy giant said that the deals will create two new ‘national champions’ within the fields of onshore and offshore drilling.
The JVs have been penned in a bid to develop a competitive Saudi Arabian energy sector, as set out in Saudi Aramco’s In-Kingdom Total Value Add (iktva) programme, and Saudi Vision 2030.
Amin H Nasser, president and chief executive officer of Saudi Aramco, said: “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 localisation of energy value chain, and enhance in-kingdom technical capabilities.
“These initiatives represent an unprecedented new large-scale model of collaboration, with substantial value creation for both Saudi Aramco and its partners through a closer working relationship.
“These investments are part of a wider programme to leverage our core activities, to help enable the sustainable development of the kingdom’s economy through diversification, and the development of an internationally competitive and dynamic local energy sector, supported by national champions,” he added.
The Nabors and Rowan JVs will involve a total investment of approximately $13bn (SAR48.8bn), money that will be used to purchase onshore rigs and offshore jack-ups manufactured in Saudi Arabia by other Saudi Aramco JVs.
The agreements, which will come into effect in Q2 2017, are expected to create 5,000 jobs, 80% of which will be awarded to Saudi nationals.
The JVs were announced during Saudi Aramco’s iktva Forum 2016, which marked the first anniversary since the scheme was launched. iktva aims to achieve 70% localisation of all spending on goods and services, and to enable 30% export of Saudi energy sector products by 2021.