NOV Announces Joint Venture to Provide High-Specification Drilling Rigs and Advanced Drilling Equipment
June 28 2018 - 5:00PM
Business Wire
National Oilwell Varco, Inc. (NYSE: NOV) today announced the
signing of an agreement with Saudi Aramco to form a joint venture
in the Kingdom of Saudi Arabia. Through its state-of-the-art
manufacturing and fabrication facilities in the Kingdom and NOV’s
market-leading drilling technologies, the joint venture will
provide high-specification land rigs, rig and drilling equipment
and offer certain aftermarket services. Additionally, the companies
announced their proposed joint venture will establish an education
center to train Saudi technicians in the maintenance and operation
of the sophisticated drilling technology that the venture will
bring to the Kingdom.
The joint venture will be supported by a commitment from the
previously announced Saudi Aramco Nabors Drilling Company to
purchase fifty (50) onshore drilling rigs from the NOV / Saudi
Aramco joint venture over a ten (10)-year period. 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%.
Through this joint venture, NOV, working with Saudi Aramco, will
develop capabilities in the Kingdom to support Saudi Aramco’s
drilling plans for decades to come and to allow for the local
workforce to be part of this initiative.
“We are excited to take this next step 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. “Commissioning of the
facility is expected by 2020 with the first rig to be delivered by
2021. The joint venture adds to NOV’s growing manufacturing foot
print in the Middle East to better serve our customers in the
region. This will create jobs and economic growth in both the
Kingdom and in our operations around the globe, including the
United States.”
About NOV
National Oilwell Varco (NYSE: NOV) is a leading provider of
technology, equipment, and services to the global oil and gas
industry. NOV has been pioneering innovations that improve the
cost-effectiveness, efficiency, safety, and environmental impact of
oil and gas operations since 1862. The depth and breadth of NOV’s
offerings support customers’ full-field, drilling, completion, and
production needs. NOV powers the industry that powers the
world.
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version on businesswire.com: https://www.businesswire.com/news/home/20180628006190/en/
National Oilwell VarcoLoren SingletaryChief Investor &
Industry Relations OfficerLoren.Singletary@NOV.com
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