HOUSTON, Oct. 19, 2017 /PRNewswire/ -- Rowan Companies plc
("Rowan" or the "Company") (NYSE: RDC) announced today that ARO
Drilling, a 50/50 joint venture with the Saudi Arabian Oil Company
("Saudi Aramco"), commenced operations on October 17, 2017.
Tom Burke, President and Chief
Executive Officer, stated, "We are extremely pleased to announce
the launch of ARO Drilling. This is a groundbreaking joint venture
that supports Saudi Arabia's
Vision 2030, and provides Rowan with an unparalleled long-term
growth opportunity throughout the next decade and beyond."
As part of the initial startup of ARO Drilling, Rowan and Saudi
Aramco contributed equal amounts of cash into the joint venture.
Following these contributions, Rowan sold three of its jack-up
drilling rigs to ARO Drilling, including the J.P. Bussell, which
was previously idle, and Saudi Aramco sold one of its jack-up
drilling rigs to ARO Drilling. Following the purchase of these
drilling rigs, ARO Drilling distributed excess cash in the amount
of approximately $88 million to each
of Rowan and Saudi Aramco maintaining each party's 50% ownership
interests in the joint venture.
Pursuant to the ARO Drilling shareholders' agreement, Saudi
Aramco will sell an additional jack-up rig in 2017 to ARO Drilling
and Rowan will sell an additional two jack-up rigs to ARO Drilling
once they complete their current contracts in late 2018.
ARO Drilling also now manages the operations of Rowan's seven
remaining jack-up rigs currently in Saudi
Arabia. Rowan and Saudi Aramco have agreed that ARO Drilling
will purchase twenty future newbuild rigs that will be constructed
by a Saudi Aramco manufacturing joint venture and are expected to
be delivered between 2021 and 2030. Each newbuild is expected to
have a sixteen year drilling commitment upon delivery to ARO
Drilling.
Interested parties are invited to view reference materials on
the Investor Relations page of Rowan's website
at www.rowan.com.
Rowan is a global provider of contract drilling services with a
fleet of 26 mobile offshore drilling units, composed of 22
self-elevating jack-up rigs and four ultra-deepwater
drillships. The Company's fleet operates worldwide, including
the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the
North Sea, the Middle East, and
Trinidad. Additionally, the Company is a 50/50 partner in a
joint venture with Saudi Aramco, entitled ARO Drilling, that owns a
fleet of four self-elevating jack-up rigs that operate in the
Arabian Gulf. The Company's Class A Ordinary Shares are traded on
the New York Stock Exchange under the symbol "RDC." For more
information on the Company, please visit www.rowan.com.
Statements herein that are not historical facts are forward
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, without limitation,
statements as to the expectations, beliefs and future expected
business, financial and operating performance and prospects of the
Company and ARO Drilling, the anticipated timing, terms and
delivery of any additional newbuild rigs to ARO Drilling, the
timing and terms of any future contributions by the Company to ARO
Drilling, and future contractual commitments of ARO Drilling. These
forward-looking statements are based on our current expectations
and are subject to certain risks, assumptions, trends and
uncertainties that could cause actual results to differ materially
from those indicated by the forward-looking statements. Among the
factors that could cause actual results to differ materially
include oil and natural gas prices, the level of offshore
expenditures by energy companies, variations in energy demand,
changes in day rates, cancellation, early termination or
renegotiation by our customers of drilling contracts, risks
associated with fixed cost drilling operations, cost overruns or
delays in transportation of drilling units, cost overruns or delays
in maintenance and repairs, cost overruns or delays for conversion
or upgrade projects, operating hazards and equipment failure, risks
of collision and damage, casualty losses and limitations on
insurance coverage, customer credit and risk of customer
bankruptcy, conditions in the general economy and energy industry,
weather conditions and severe weather in the Company's operating
areas, increasing complexity and costs of compliance with
environmental and other laws and regulations, changes in tax laws
and interpretations by taxing authorities, civil unrest and
instability, terrorism, piracy and hostilities in our areas of
operations that may result in loss or seizure of assets,
impairments, the outcome of disputes, including tax disputes, and
legal proceedings, effects of the change in our corporate
structure, and other risks disclosed in the Company's filings with
the U.S. Securities and Exchange Commission. Each forward-looking
statement speaks only as of the date hereof, and the Company
expressly disclaims any obligation to update or revise any
forward-looking statements, except as required by law.
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SOURCE Rowan Companies plc