Rowan, Saudi Aramco to form joint venture to operate offshore drilling rigs

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.