Rowan Companies plc, a US offshore drilling contractor, has announced that it is forming a 50/50 joint venture with state-run oil giant Saudi Aramco to operate offshore drilling rigs in Saudi Arabian waters.
Rowan will provide three jack-up rigs — and Saudi Aramco two — when the joint venture begins operations in the second quarter of 2017.
Both will contribute $25 million of working capital to the joint venture, according to Rowan, and the US group will supply two more rigs in late 2018, while Saudi Aramco will make a matching cash contribution.
Rowan said the rigs will receive contracts for an initial 15-year period — to be renewed and re-priced every three years — provided that they meet the technical and operational requirements of Saudi Aramco.