(Adds background about Saudi Aramco's potential IPO)
Nov 21 Rowan Companies Plc 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
Nabors Industries Ltd had said last month that it
would form a joint venture with Saudi Aramco to operate onshore
Saudi Aramco is targeting 2018 for what could be the world's
largest public listing, Chief executive Amin Nasser said in
(Reporting by John Benny in Bengaluru; Editing by Savio D'Souza
and Anil D'Silva)