Rowan Companies Plc said it was forming a joint venture (JV) with Saudi Arabia's Saudi Aramco to operate offshore drilling rigs in the country.
Rowan said it would provide three jackup rigs, and Saudi Aramco, two, when the JV begins operations in the second quarter of 2017.
Both companies would contribute $25 million as working capital, Rowan said in a regulatory filing on Nov. 21.
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 Ltd. said in October that it would form a JV 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.
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