Saudi Aramco has agreed a 10 per cent discount with Singapore’s Asia Offshore Drilling for three jack-up rigs operating off the Gulf coast of Saudi Arabia.

The rigs have been in operation for Aramco since 2013 and the initial deal is set to run out in 2016. However, a one-year option is expected to be taken up.

The reductions are effective from April 1 to March 31 2016.

MEED reported in February that Aramco was asking for markdowns of anything between 15-25 per cent, but most providers of rigs for both onshore and offshore are willing to offer is between 5-7 per cent.