Saudi Aramco and Rowan establish joint venture for Saudi Arabian offshore operations

Offshore rigSaudi Aramco entered into 50/50 joint-venture agreement with Rowan Companies for operation of offshore drilling rigs in Saudi Arabia. The new established joint venture will be commenced in second quarter of 2017 and will use the Rowan’s established business in the country, covering the Saudi Arabia’s existing and future offshore oil and gas fields. It will combine the expertise and equipment of both companies in development of the country’s offshore oil blocks. Into the joint venture, Rowan Companies will contribute with three existing drilling jack-up rigs and two newbuilding platforms, while Saudi Aramco will contribute two of its jack-up drilling rigs.

“Rowan has had a long and mutually beneficial relationship with Saudi Aramco and we welcome this opportunity to further strengthen our partnership and extend our commitment to the region”, said the President and CEO of Rowan, Tom Burke. “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”, added he.

The new joint venture will operate also the existing jackup rigs of Rowan in Saudi Arabia until the associated drilling contracts expire.

Rowan Companies is an American offshore drilling contractor, which provides drilling services to the petroleum industry. The company is headquartered in Houston, Texas. Rowan Companies operates a fleet of 31 rigs including 27 offshore drilling jackup rigs and 4 ultra-deepwater drillships. The company operates worldwide in the Gulf of Mexico, Trinidad, North Sea, Southeast Asia, Mediterranean, Middle East and Southeast Asia.