HOUSTON – Rowan Companies plc and Saudi Aramco have signed, through their subsidiaries, an agreement to create a 50/50 joint venture to own, operate, and manage offshore drilling rigs in Saudi Arabia.
The new joint venture company will use Rowan’s established business in Saudi Arabia as its base with a scope of operations covering Saudi Arabia’s existing and future offshore oil and gas fields.
The new company is anticipated to begin operations in 2Q 2017. At that time, Rowan will contribute three of its jackup drilling rigs andSaudi Aramco will contribute two of its jackup drilling rigs. The drilling contractor will contribute an additional two jackup rigs as they complete their current Saudi Aramco contracts in late 2018.
The new company will also manage the operations of five Rowan jackup rigs currently in Saudi Arabia, until their associated drilling contracts expire, which then may be released, leased by, or contributed to the new company thereafter.
Rowan and Saudi Aramco have committed the new company to purchase future newbuild rigs that will be constructed in Saudi Arabia.
Tom Burke, president and CEO of Rowan, said: “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.”