Saudi Aramco, US Firm NOV Sign Deal for Onshore Oil Rigs, Equipment

Saudi Aramco signed a deal with Houston-based National Oilwell Varco Inc. (NOV) to form a joint venture to make onshore rigs and equipment in Saudi Arabia, according to a press release by Aramco and reported in several news outlets.

The Houston Chronicle reports the joint venture with Saudi Aramco is for “the manufacturing of land rigs and other drilling and services equipment to feed Aramco’s other JV with Nabors Industries, which operates out of Houston, to own and operate much of Aramco’s onshore drilling operations. The Nabors deal was announced in late 2016.”

Aramco and Nabors have agreed to purchase 50 rigs from the new NOV joint venture over a 10-year period. NOV will own 70 percent of the JV with Aramco.

NOV will expand its manufacturing facilities in Saudi Arabia and deliver the first new rig by 2021.