HOUSTON--(BUSINESS WIRE)--Jun. 28, 2018--
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.”
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180628006190/en/
Source: National Oilwell Varco, Inc.
National Oilwell Varco
Chief Investor &
Industry Relations Officer