As Saudi Arabia forges ahead with its Vision 2030, the nation is undergoing a profound economic transformation aimed at building a diversified and sustainable industrial base. A key aspect of this transformation is the development of local industries, which is central to creating jobs, developing local talent, and developing economic resilience.
In May 2023, Aramco in collaboration with National Oilwell Varco (NOV) through its joint venture (JV) Arabian Rig Manufacturing (ARM) celebrated the first in-Kingdom fabricated 2000-HP onshore rig and 13-5/8 10M spherical blowout preventers (BOPs). This achievement earned the JV the prestigious “Manufacturer of the Year” accolade in Saudi by The Energy Year Saudi Arabia.
Aramco’s executive vice president of EXPEC & Drilling, Abdul Hameed A. Al-Dughaither, who also serves as chairman of ARM, underscores the significance of this accomplishment: “The ‘Made in Saudi’ ethos lies at the heart of Saudi Arabia’s ambitious Vision 2030 plans, which seek to diversify the national economy, foster localized industries, and unlock the potential of the country’s human capital.”
Nasir K. Al-Naimi ( Aramco’s President of Upstream), Ahmad Alsa’adi (IMI Chairman, and Aramco’s former Executive Vice President of Technical Services), and Abdulhameed Aldughaither (ARM Chairman, and Aramco’s Executive Vice President of EXPEC & Drilling) inaugurate the Kingdom’s first locally-manufactured rig
ARM’s impressive 64% Saudization rate further reflects the Vision’s commitment to a sustainable future. By prioritizing local talent and expertise, this will not only contribute to the national economy but also ensures long-term industry growth and self-sufficiency.
Propelling this initiative forward, ARO drilling, a JV between Aramco and Valaris, marked another milestone in November 2023 with the successful delivery of Kingdom-1, the first offshore jack-up rig constructed in partnership with International Maritime Industries (IMI).
Aramco Upstream President, Nasir K. Al-Naimi, highlighted the significance of this achievement: “Bringing the capabilities in-Kingdom to design and produce a rig of this calibre is demonstrative of the lengths to which Aramco Upstream, and our partners, are willing to go to ensure an ever more competitive, reliable, and sophisticated domestic energy sector, while simultaneously expanding our possibilities in the offshore domain.”
In May 2024, the Kingdom reached a new benchmark with the addition of another offshore jack-up rig. Ahmad Al Sa’adi, Chairman of IMI, said: “Delivering KINGDOM-1 was a major ‘first’ for IMI. Delivering a second rig less than six months later represents something different. It shows that rig-building at scale is ‘business as usual’ for IMI and shines a spotlight on the company as an emerging regional maritime leader. KINGDOM-2 also demonstrates the strength of our partnerships, with ARO and Lamprell in this instance, and how, together, we are boosting the region’s offshore capabilities.” This achievement highlights Saudi Arabia’s ongoing expansion in localised manufacturing and reinforces its growing role in the global drilling industry.
The localization of drilling rig manufacturing is set to not only strengthen the Kingdom’s industrial capabilities, but also pave the way for Saudi Arabia to emerge as a global exporter. As Al-Dughaither stated: “We envision establishing the Kingdom as a strategic regional hub, catering to the growing demands of the broader Middle East and North Africa market”.
This shift aligns with Saudi Vision 2030’s goals of economic diversification and localising industries. As the Kingdom continues to capitalize on its burgeoning manufacturing sector, it is poised to extend its reach to international markets while maintaining its domestic needs. This milestone is sure to be the first of many to come in the Kingdom’s ambitious pursuits.