Nabors Industries Ltd. and Saudi Aramco have entered into a joint
venture in the kingdom of Saudi Arabia to oversee and operate 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.
