Saudi Aramco has signed an agreement with US-based National Oilwell Varco (NOV) to form a joint venture partnership to establish an integrated world-class on-shore rig and equipment manufacturing and aftermarket facility in Ras al-Khair in Saudi Arabia.

Saudi Aramco will own 30 per cent of the joint venture’s shares and NOV will own the remaining 70 per cent.

The joint venture will be located in Ras al-Khair, near Jubail Industrial City on the Kingdom’s east coast.

It will produce high specification drilling rigs using cutting-edge technologies with a capacity to manufacture 10 onshore rigs a-year.  The facility will also offer repair services.

Aramco CEO Amin Nasser says that joint venture will support the development of the King Salman International Complex for Maritime Industries and Services and help Aramco’s In-Kingdom Total Value Add (IKTVA) programme and expand the procurement of locally manufactured goods and services alongside.

The joint venture operation is also expected to create over one thousand direct and indirect jobs in the kingdom. commissioning of the facility is expected by 2020 with the first rig to be delivered in 2021.