NOV Announces Joint Venture with Saudi Aramco to Manufacture High-Specification Drilling Rigs and Advanced Drilling Equipment
May 22 2017 - 6:45AM
Business Wire
National Oilwell Varco, Inc. (NYSE: NOV) today announced
entering into a memorandum of understanding with Saudi Aramco to
form a joint venture in Saudi Arabia. Through its state-of the art
manufacturing and fabrication facilities and NOV’s market-leading
drilling technologies, the joint venture will manufacture
high-specification land rigs, rig and drilling equipment, and offer
certain aftermarket services. Additionally, the companies announced
their proposed joint venture will establish a training center to
develop Saudi technicians to maintain and operate the sophisticated
drilling technology produced by the venture.
The joint venture will be supported by a commitment from the
recently announced Saudi Aramco Nabors Drilling Company to purchase
fifty (50) onshore drilling rigs over a ten (10)-year period, and
the joint venture will have the opportunity to supply, through an
exclusivity agreement, Saudi Arabia, GCC and MENA region. NOV will
own a 70% interest in the joint venture, while Saudi Aramco will
own 30%.
“We are excited to bring together NOV’s industry-leading
technology, manufacturing expertise and rig products with Saudi
Aramco’s E&P capabilities,” commented Clay Williams, NOV
Chairman, President and CEO. “With the formation of this joint
venture, we will be harmonizing two important goals: supporting
Saudi Aramco’s supply chain integration initiative and
strengthening NOV’s U.S.-based, world-leading drilling technology
franchise. This will create jobs and economic growth in both the
Kingdom and in our operations around the globe, including the
United States.”
The memorandum of understanding, which includes a detailed
commercial term sheet, remains subject to final negotiation.
About NOV
National Oilwell Varco (NYSE: NOV) is a leading provider of
technology, equipment, and services to the global oil and gas
industry that supports customers’ full-field drilling, completion,
and production needs. Since 1862, NOV has pioneered innovations
that improve the cost-effectiveness, efficiency, safety, and
environmental impact of oil and gas operations. NOV powers the
industry that powers the world.
Visit www.nov.com for more information.
Cautionary Statement for the Purpose of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act of
1995
Statements made in this press release that are forward-looking
in nature are intended to be “forward-looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934
and may involve risks and uncertainties. These statements may
differ materially from the actual future events or results. Readers
are referred to documents filed by National Oilwell
Varco with the Securities and Exchange Commission,
including the Annual Report on Form 10-K, which identify
significant risk factors which could cause actual results to differ
from those contained in the forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170522005262/en/
National Oilwell Varco, Inc.Investor and Media
Contact:Loren Singletary, 713-346-7807Chief Investor &
Industry Relations OfficerLoren.Singletary@nov.comorCustomer
Contact:Kevin Chapman, 346-223-4005Chief Sales Officer, NOV Rig
SystemsKevin.Chapman@nov.com
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