Rowan Companies Plc (RDC.N) said it was forming a joint venture with Saudi Arabian state oil giant Saudi Aramco to operate offshore drilling rigs in the country.
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 Saudi Aramco.
(Reporting by John Benny in Bengaluru; Editing by Savio D’Souza and Anil D’Silva)
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
