Nabors Industries has signed an agreement to set up a new joint venture (JV) in the Kingdom of Saudi Arabia to own, manage and operate onshore drilling rigs.
The JV will be equally owned by Saudi Aramco and Nabors and is expected to be formed and begin operations in the second quarter of 2017.
As part of its commitment to developing a competitive Saudi energy sector, Saudi Aramco plans to localise industry hubs in order to foster economic diversification and job creation and this JV is considered as one of the anchor projects emerging out of this strategy.
The strategy supports the wider development and localisation of industries such as rig and rig equipment manufacturing along with casting and forging.
The JV will leverage Nabors' business in Saudi Arabia to commence operations, with a focus on Saudi Arabia's existing and future onshore oil and gas fields.
Saudi Aramco and Nabors will both contribute land rigs to the JV in the first years of operation, as well as capital commitments toward future onshore drilling rigs, which will be manufactured in Saudi Arabia.
Nabors chairman, president and CEO Anthony G Petrello said: "Nabors has had a decades-long and mutually beneficial relationship with Saudi Aramco.
"We welcome this opportunity to expand that relationship, extend our commitment to the Kingdom, and create a long-term, profitable growth partnership with high skills career opportunities for Saudi employees.
"This venture represents a new chapter in the operator / contractor relationship. We fully expect the venture's shared interest and collaborative efforts to result in even higher levels of safety and efficiency while enhancing Saudi Aramco's well productivity and cost savings."
Nabors Industries owns and operates land-based drilling rig fleet and is a provider of offshore platform rigs in the US and several other markets.