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State-run Aramco inked a shareholder deal with National Oilwell Varco (NOV) to form a joint venture partnership to establish an integrated world-class on-shore rig and equipment manufacturing and aftermarket facility in Ras Al-Khair in Saudi Arabia, Aramco said in a statement Thursday.
The facility will have a capacity to manufacture 10 high specification onshore drilling rigs per year, using cutting-edge technologies. It will offer repair services and recertification of a large portfolio of equipment, in addition to the capabilities to supply drilling packages for offshore Jack-up rigs, the statement added.
It is expected to operate by 2020 with the first rig to be delivered in 2021.
Under the agreement, Saudi Aramco will own 30 percent of the joint JV shares, while NOV will own the remaining 70 percent.
Saudi Aramco’s agreement with NOV today is a step in that direction towards the creation of a vibrant energy services sector which helps us to further advance our In-Kingdom Total Value Add program and expand the procurement of locally manufactured goods and services alongside the development of Giga Projects such as the King Salman International Complex for Maritime Industries and Services,” Aramco CEO, Amin Nasser, said.
Moreover, Saudi Aramco Development Company CEO, Ziad Al-Murshed, highlighted that the investment will strengthen the integrated portfolio of oil field services and equipment, being developed by his firm.
He added that Aramco has established two rig operations joint ventures, offshore and onshore, as steps to localize oil field services in the Kingdom. He pointed that the deal with NOV is a major step toward localizing oil field equipment manufacturing and after-market services, starting with rig manufacturing.
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