The board of directors at National Oilwell Varco Inc. (NYSE: NOV) approved a buyback program for up to $3 billion outstanding common shares, the company said Sept. 30.

The buybacks will be made publicly and privately, the company added, noting that the program will be in place for 36 months. Cash will fund the buyback, but borrowings might also fund it, National Oilwell said.

"This authorization comes after several months of careful consideration and reflects the company’s strong financial condition, and the confidence that we have in our future business outlook,” said Clay C. Williams, the chairman, president and CEO.

“We are pleased that the continued execution of a solid business model has resulted in strong operating cash flow that enables us to continue to invest in strategic growth opportunities, while simultaneously returning capital to shareholders through both a healthy dividend and a share repurchase program," he added.

Houston-based National Oilwell Varco Inc. serves the worldwide oil and natural gas industry.