Saudi Aramco and National Oilwell Varco (NOV) kicked-off their joint venture – a facility for onshore rig and equipment manufacturing.
Arabian Rig Manufacturing (ARM), will be set up in Ras al-Khair, 80 kilometres north of Jubail. The JV has seen the appointment of senior officials at its first board of managers meeting, Aramco said in a statement. NOV holds 70 per cent share in the JV with Aramco holding the rest.
The facility’s construction work will be completed in two years, while commissioning of the facility is expected by 2020 and the first rig to be delivered by 2021.
ARM will be supported by a commitment from the recently announced Saudi Aramco Nabors Drilling Company to buy drilling rigs from the JV, Aramco said.
When fully operational, the integrated facility is expected to have the capacity to produce 10 rigs per year to serve the Middle East and North Africa region. Spanning over 500,000 square meters, ARM will be the single largest state-of-the-art rig, drilling equipment, and aftermarket facility to date.
The complex will complement engineering, training, service, and repair capabilities, with additional cross-functional efficiency and design flexibility to address market requirements and technological advancements.
The fully integrated manufacturing and services hub includes a two-floor office block, warehouse, raw material laydown yard, fabrication shop, machine and assembly shop, total paint and blast, rig-up yard, repair shop, and a future expansion area.