Saudi Aramco signed an agreement to form a new joint venture (JV) in Saudi Arabia to manage and operate onshore drilling rigs with the Anglo Energy company, Nabors. The joint venture, which will be equally owned by Saudi Aramco and Nabors, is anticipated to be formed and commence operations in the second quarter of 2017, reported Trade Arabia.

The joint venture will leverage Nabors’ established business in Saudi Arabia to begin operations, with a focus on existing and future onshore oil and gas fields. Saudi Aramco and Nabors will each contribute land rigs to the joint venture in the first years of operation along with capital commitments toward future onshore drilling rigs which will be manufactured in Saudi Arabia, PR News Wire.

This joint venture is one of the anchor projects to foster economic diversification and job creation. It is expected to supports the wider development and localization of industries such as rig and rig equipment manufacturing and casting and forging.

It is noted that Nabors Industries owns and operates the world’s largest land-based drilling rig fleet and is a leading provider of offshore platform rigs in the United States and numerous international markets.