Saudi Aramco, Nabors partner to manage onshore drilling rigs
The companies will have equal ownership of the rigs. Operations are expected to begin in spring 2017.
Part of Saudi Aramco’s strategic plan has been to localize industry hubs in an effort to develop more jobs, stimulate economic growth and build a competitive energy sector in Saudi Arabia. The joint venture is the main project within the strategy focused on broadening local work sectors in areas like manufacturing, casting and forging rig equipment.
“Nabors has had a decades-long and a mutually beneficial relationship with Saudi Aramco,” Nabors President and CEO Anthony Petrello said. “We welcome this opportunity to expand that relationship, extend our commitment to the kingdom and create a long-term, profitable growth partnership with high-skills career opportunities for Saudi employees. This venture represents a new chapter in the operator-contractor relationship. We fully expect the venture's shared interest and collaborative efforts to result in even higher levels of safety and efficiency, while enhancing Saudi Aramco's well productivity and cost savings.”
Nabors is an established name in the Saudi Arabia business world, and this project allows the company to channel its focus on the development of onshore oil and gas fields. During the first years of the joint venture, both Nabors and Saudi Aramco must contribute land rigs and pledge to capital commitments toward the future of onshore drilling rigs.