Rowan, Aramco in JV to manage offshore

HOUSTON, November 21, 2016 – Saudi Aramco and Houston-based Rowan Companies announced on Monday they would form a joint venture to manage offshore rigs in the Gulf country.

Each company would initially contribute USD 25 million to the new company, which is expected to start operations in Q2 of 2017, Reuters reported.

“The new company will uniquely position Rowan to participate in the growing Saudi Arabian offshore drilling market, and provide Rowan with a compelling opportunity for a long-term partnership with the world’s leading oil and gas company, and create a long-term, profitable growth platform with firm rig commitments,” Rowan CEO Tom Burke said in a statement.

The agreement, which came as Aramco has been seeking to increase its transparency ahead of an IPO planned for early 2018, mirrors a similar deal struck last month between Aramco and US-based Nabors Industries for the management of onshore rigs.

Rowan is initially expected to contribute three jack-up rigs and to add two more in 2018 after their current contracts expire, the press release added, while Aramco would contribute two units and matching cash contributions. The joint venture will also manage five other rigs Rowan has on contract in the country and contract newbuild rigs for construction in Saudi Arabia.

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