Nabors Industries Ltd has recently signed an agreement to form a new joint venture in the Kingdom of Saudi Arabia to own, manage and operate onshore drilling rigs. The joint venture, which will be equally owned by Saudi Aramco and Nabors, is anticipated to be formed and commence operations in Q22017.
As part of its commitment to developing a competitive Saudi energy sector, Saudi Aramco has sought to localize industry hubs in order to foster economic diversification and job creation. This JV is one of the anchor projects that has grown out of this strategy which supports the wider development and localization of industries such as rig and rig equipment manufacturing and casting and forging.
The JV will leverage Nabors’ established business in Saudi Arabia to begin operations, with a focus on Saudi Arabia’s existing and future onshore oil and gas fields. Saudi Aramco and Nabors will each contribute land rigs to the joint venture in the first years of operation along with capital commitments toward future onshore drilling rigs which will be manufactured in Saudi Arabia.