Nabors Industries Ltd. (NYSE: NBR) formed a new joint venture (JV) in the Kingdom of Saudi Arabia to own, manage and operate onshore drilling rigs, the company said Oct. 31.

The Houston-based company signed an agreement with Saudi Aramco for the JV, which will be equally owned by Saudi Aramco and Nabors.

The JV, anticipated to commence in second-quarter 2017, will leverage Nabors' established business in Saudi Arabia to begin operations, with a focus on the kingdom's existing and future onshore fields.

Saudi Aramco and Nabors will each contribute land rigs to the JV in the first years of operation along with capital commitments toward future onshore drilling rigs which will be manufactured in Saudi Arabia.

The partnership is one of the anchor projects that has grown out of Saudi Aramco's strategy to localize industry hubs in order to foster economic diversification and job creation, according to the press release.

Nabors has had a "decades-long" relationship with Saudi Aramco, said Anthony G. Petrello, the company's chairman, president and CEO.

"We welcome this opportunity to expand that relationship, extend our commitment to the Kingdom, and create a long-term, profitable growth partnership with high skills career opportunities for Saudi employees. This venture represents a new chapter in the operator-contractor relationship," Petrello said in a statement.