Rowan, Saudi Aramco to
form joint venture to operate offshore drilling rigs
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[November 21, 2016]
(Reuters) - Rowan Companies
Plc said it was forming a joint venture with Saudi
Arabian state oil giant Saudi Aramco to operate offshore
drilling rigs in the country.
A Saudi Aramco employee sits in the area of its stand at
the Middle East Petrotech 2016, an exhibition and
conference for the refining and petrochemical
industries, in Manama, Bahrain, September 27, 2016.
REUTERS/Hamad I Mohammed
Rowan said it would provide three jack-up rigs and Saudi Aramco
two when the joint venture begins operations in the second
quarter of 2017.
Both companies would contribute $25 million as working capital,
Rowan said in a regulatory filing on Monday.
Rowan will supply two more rigs in late 2018 and Saudi Aramco
will make a matching cash contribution.
Rowan said the rigs would receive contracts for an aggregate 15
years, renewed and re-priced every three years, provided that
the rigs meet the technical and operational requirements of
Nabors Industries Ltd <NBR.N> had said last month that it would
form a joint venture with Saudi Aramco to operate onshore
Saudi Aramco is targeting 2018 for what could be the world's
largest public listing, Chief executive Amin Nasser said in
(Reporting by John Benny in Bengaluru; Editing by Savio D'Souza
and Anil D'Silva)
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