Saudi Aramco has signed an agreement to create an on-shore rig and equipment manufacturing and aftermarket facility with US rig making firm National Oilwell Varco (NOV) Inc.
Aramco will own 30 percent of the joint venture’s shares, while NOV will own the remaining 70 percent of the operation to be based out of Ras Al-Khair in Saudi Arabia.
The JV will have a “significant impact” in localising oil and gas sub-sectors in Saudi Arabia and in attracting investments from international partners, said.Saudi Aramco president and CEO, Amin Nasser.
“Saudi Aramco’s agreement with NOV today is a step 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 added.
The new firm will be located near Jubail Industrial City on the kingdom’s east coast, and will create high specification drilling rigs at a rate of up to 10 onshore rigs per year. Commissioning of the facility is expected by 2020 with the first rig to be delivered in 2021.
By adding to its oil field equipment development portfolio, Saudi Aramco will optimise its supply chain costs and creating up to 1,000 direct and indirect employment and training opportunities for Saudi youth, according Ziad Al-Murshed, executive director of new business development at Saudi Aramco, and CEO of the Saudi Aramco Development Company.
“Over the past few years, Saudi Aramco has taken major steps to localise oil field 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 localizing oil field equipment manufacturing and after-market services, starting with rig manufacturing,” added Al-Murshed.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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