NOV SAUDI ARAMCO JOINT VENTURE

May 24, 2017

National Oilwell Varco (NOV) announced entering into a memorandum of understanding with Saudi Aramco to form a NOV Saudi Aramco joint venture in Saudi Arabia. Through its state-of the art manufacturing and fabrication facilities and NOV’s market-leading drilling technologies, the joint venture will manufacture high-specification land rigs, rig and drilling equipment, and offer certain aftermarket services. Additionally, the companies announced their proposed joint venture will establish a training center to develop Saudi technicians to maintain and operate the sophisticated drilling technology produced by the venture.
The joint venture will be supported by a commitment from the recently announced Saudi Aramco Nabors Drilling Company to purchase fifty (50) onshore drilling rigs over a ten (10)-year period, and 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%.
“We are excited 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. “With the formation of this joint venture, we will be harmonizing two important goals: supporting Saudi Aramco’s supply chain integration initiative and strengthening NOV’s U.S.-based, world-leading drilling technology franchise. This will create jobs and economic growth in both the Kingdom and in our operations around the globe, including the United States.” (Source and image: NOV – NOV drilling rig draworks)