Blog Coverage: Saudi Aramco and National Oilwell Varco Join Hands to Build Land Rigs, Rig and Drilling Equipment in Saudi Arabia

Upcoming AWS Coverage on Tesoro Logistics Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 24, 2017 / Active Wall St. blog coverage looks at the headline from National Oilwell Varco, Inc. (NYSE: NOV) as the Company announced on May 22, 2017 that it has signed a Memorandum of Understanding (MoU) with Saudi Aramco to form a joint venture (JV) in the Kingdom of Saudi Arabia (KSA) to provide high-specification drilling rigs and advanced drilling equipment. Register with us now for your free membership and blog access at:

http://www.activewallst.com/register/

One of National Oilwell Varco’s competitors within the Oil & Gas Equipment & Services space, Tesoro Logistics L.P. (NYSE: TLLP), reported on May 08, 2017, its financial results for Q1 2017. AWS will be initiating a research report on Tesoro Logistics in the coming days.

Today, AWS is promoting its blog coverage on NOV; touching on TLLP. Get all of our free blog coverage and more by clicking on the link below:

http://www.activewallst.com/register/

The MoU includes a detailed commercial term sheet and is subject to final negotiation.

Sharing his views on the signing of MoU with Saudi Aramco, Clay William, Chairman, President and CEO of National Oilwell Varco said:

“With the formation of this joint venture, we will be harmonizing two important goals: supporting Saudi Aramco’s supply chain integration initiative and strengthening NOV’s US-based, world-leading drilling technology franchise. This will create jobs and economic growth in both the Kingdom and in our operations around the globe, including the United States.”

Scope of the JV

The National Oilwell Varco/ Saudi Aramco JV envisions the establishment of a state-of the art manufacturing and fabrication facilities in KSA where the JV will manufacture high-specification land rigs, rig and drilling equipment using National Oilwell Varco’s leading drilling technologies. The National Oilwell Varco/ Saudi Aramco JV will also offer certain aftermarket services.

Apart from the above the National Oilwell Varco /Saudi Aramco JV will establish a training center to develop and train Saudi technicians to maintain and operate the various sophisticated drilling technology produced by the venture.

National Oilwell Varco will own 70% stake in the JV and the remaining 30% stake will be owned by Saudi Aramco.

The NOV – Saudi Aramco JV has already received commitment from the recently formed JV Company – Saudi Aramco Nabors Drilling Company, which plans to purchase 50 onshore drilling rigs over the next ten years. The NOV – Saudi Aramco JV will get an opportunity to sign an exclusive agreement with the drilling Company to supply its products and services in the Saudi Arabia, GCC, and MENA region.

The JV is expected to create 1,000 new jobs.

About National Oilwell Varco

Houston, Texas based National Oilwell Varco provides equipment and components that are used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The Company’s business is divided into four verticals: Rig Systems, Rig Aftermarket, Wellbore Technologies, and Completion & Production Solutions. National Oilwell Varco also offers a range of training solutions across product lines in these business verticals.

Backdrop

Following the maiden visit of President Donald Trump to KSA on May 20, 2017, US and Saudi Arabian Companies signed deals worth billions of dollars.

On May 20, 2017, Saudi Aramco signed a range of agreements with major US Companies totaling over $50 billion. The National Oilwell Varco/Saudi Aramco MoU is a part of these agreements.

Commenting on the signing of these agreements with US Companies, Amin Nasser, President and CEO of Saudi Aramco said:

“The agreements signed today by Saudi Aramco with major American Companies underscore the purposeful collaboration between Saudi Arabia and the United States in areas of strategic importance linking Saudi Vision 2030 and America’s own economic depth and strength.”

Some of the other US Companies with whom Saudi Aramco signed agreements include: GE, Rowan, Nabors, McDermott, Honeywell, Schlumberger, Halliburton, Weatherford, Baker Hughes, and Emerson.

Stock Performance

At the close of trading session on Tuesday, May 23, 2017, National Oilwell Varco’s stock price marginally rose 0.14% to end the day at $35.00. A total volume of 2.19 million shares were exchanged during the session. The stock has surged 10.90% in the previous twelve months. The stock currently has a market cap of $13.00 billion and has a dividend yield of 0.57%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 464092