Saudi Aramco, Rowan to launch offshore drilling joint venture

New York-listed Rowan Companies Plc is forming a joint venture with state-owned oil giant Saudi Aramco to own, operate, and manage offshore drilling rigs in Saudi Arabia.

The joint venture will build 20 new rigs over the next 10 years, with Rowan contributing three jack-up drilling rigs and Saudi Aramco providing two rigs when the joint venture begins operations in Q2 2017.

Both companies will initially contribute $25 million each as working capital to the project.

Rowan will also provide an additional two jack-up rigs as they complete their current Aramco contracts in late 2018.

“Rigs contributed will 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 Saudi Aramco,” it added.

The new company will also manage the operations of five Rowan jack-up 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 said.