National Oilwell Varco Signs MoU With Saudi Aramco To Form JV In Saudi Arabia

(RTTNews) - National Oilwell Varco Inc. (NOV), A provider of technology, equipment, and services to oil and gas industry, announced Monday that it is entering into a memorandum of understanding with Saudi Aramco to form a joint venture in Saudi Arabia. The JV will manufacture high-specification drilling rigs and advanced drilling equipments.

In the joint venture, NOV will own a 70% interest, while Saudi Aramco will own 30%.

The memorandum of understanding, which includes a detailed commercial term sheet, remains subject to final negotiation.

The joint venture will manufacture high-specification land rigs, rig and drilling equipment, and offer certain aftermarket services. Additionally, the companies announced their proposed joint venture will establish a training center to develop Saudi technicians to maintain and operate the sophisticated drilling technology produced by the venture.

The JV will be supported by a commitment from the recently announced Saudi Aramco Nabors Drilling Company to purchase fifty onshore drilling rigs over a ten-year period. The joint venture will have the opportunity to supply, through an exclusivity agreement, Saudi Arabia, GCC and MENA region.