Saudi Aramco has signed a deal with the Bermuda-based Asia Offshore Drilling that will see the state-owned oil major lease two offshore drilling rigs from the company.

The rigs will be leased for a minimum of three years plus an option to extend by a further 12 months. Aramco will pay $197m a rig for the three-year period, plus a mobilisation fee of $34m a rig.

The two rigs are currently under construction at the Keppel shipbuilding yard in Singapore with the first being completed in April and the second in July.