RIYADH: Oil giant Saudi Aramco has launched Arabian Rig Manufacturing, a joint venture firm with American entity NOV, to manufacture drilling rigs and related equipment for the first time in Saudi Arabia. Located at Ras Al-Khair, the new facility is expected to reduce dependence on imported products in one of the largest oil-producing nations, reported Argaam. Quoting a press release, it reported that this new joint venture is a part of Saudi Aramco’s ongoing efforts to localize rig manufacturing, in line with the Kingdom’s Vision 2030 and the In Kingdom Total Value Add program. It should be noted that the IKTVA program is created by Saudi Aramco to baseline, measure and support increased levels of localization in the Kingdom. This new project is one of NOV’s largest investments for rig manufacturing outside the US, and it will have an area of nearly 500,000 sq. m. Amin Nasser, president and CEO of Saudi Aramco, said that the new facility in Ras Al-Khair is expected to manufacture at least 10 drilling rigs annually. The joint venture aims to boost Saudi Arabia’s economic growth and generate employment opportunities within the Kingdom, the press release noted. “Drilling rigs are one of the most important symbols of the oil and gas industry and one of the main equipment used in global energy supplies, and now Saudi Arabia has become a site for designing and manufacturing highly efficient and technical onshore drilling rigs,” said Nasser. Earlier in September, Majid Al-Mohammed, supervisor of IKTVA Action Plan and Support, said that the program aims to enable and sustain the economy and supply chain in the energy sector. Al-Mohammed, while speaking at the Local Content Forum, added that the Kingdom witnessed a massive rise in prospective local investments post the launch of the IKTVA program. “The most important effect of the IKTVA program is the increase in the number of prospective local investments to 500, with a capital of SR26 billion ($6.9 billion),” he said. Al-Mohammed further revealed that 132 factories have been established so far in the Kingdom since the start of the program, which contributed to adding SR12 billion in addition to the domestic product.