Aramco, NOV to set up rigs JV in Saudi Arabia

Saudi Aramco has signed an agreement with National Oilwell Varco (NOV) to form a joint venture for an integrated world-class on-shore rig and equipment manufacturing and aftermarket facility in Ras Al-Khair in Saudi Arabia.
 
As per the shareholder agreement, Saudi Aramco will own 30 per cent of the joint venture’s shares, while NOV will own the remaining 70 per cent.
 
“The kingdom's leadership’s efforts to accelerate economic diversification as part of Vision 2030 is having a significant impact in enabling the creation of new sub-sectors and also in attracting investments from our international partners to our nation’s vital oil and gas industry," said Amin Nasser, Saudi Aramco’s president and CEO.
 
"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,” he said.
 
“The new manufacturing facility will further strengthen the integrated portfolio of oilfield services and equipment being developed by the Saudi Aramco Development Company, which also optimizes Saudi Aramco’s supply chain costs and improves its agility. This investment will also create employment and training opportunities for Saudi youth,” said Ziad Al-Murshed, executive director of new business development at Saudi Aramco, and chief executive officer of the Saudi Aramco Development Company.
 
“Over the past few years, Saudi Aramco has taken major steps to localise oilfield services in the kingdom, starting with drilling services, through establishing two rig operations joint ventures, one for onshore drilling and the other for offshore drilling. This joint venture with NOV is a major step toward localising oilfield equipment manufacturing and after-market services, starting with rig manufacturing,” added Al-Murshed.
 
The new joint venture with NOV will be located in Ras Al-Khair, near the Jubail Industrial City on the kingdom’s east coast, and will serve as a major hub for high specification drilling rigs using cutting-edge technologies with a capacity to manufacture 10 onshore rigs per year. Additionally, the facility will offer repair services and recertification of a large portfolio of equipment. The facility will also have the capabilities to supply drilling packages for offshore jack-up rigs.  It will localise expertise in multiple disciplines related to on-shore rig manufacturing and is expected to create over 1,000 direct and indirect jobs in the kingdom.
 
Commissioning of the facility is expected by 2020 with the first rig to be delivered in 2021.

Source: tradearabia.com