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Rowan, Saudi Aramco to form JV ahead of huge IPO

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Staff Writer | November 21, 2016
Rowan Companies is forming a joint venture with Saudi Arabian state oil giant Saudi Aramco to operate offshore drilling rigs in the country.
Saudi Aramco
Oil exploration   Saudi Aramco is targeting 2018
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. 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 Saudi Aramco.

Nabors Industries had said last month that it would form a joint venture with Saudi Aramco to operate onshore drilling rigs.

Saudi Aramco is targeting 2018 for what could be the world's largest public listing, CEO Amin Nasser said in October.