(Yicai Global) March 15 -- Sinopec International Petroleum Service, part of China's state-backed Sinopec Group, has secured USD340 million in drilling rig orders from Saudi Arabian Oil, or Saudi Aramco.

The Middle Eastern gas and oil giant signed two deals for gas drilling rigs and two for oil drillers, SIPS's direct parent, Sinopec Oilfield Service, said in a statement yesterday.

The agreements cement the supplier's status as Saudi Aramco's largest onshore drilling rig contractor, it added. The pair have worked closely in recent times, and renewed four five-year contracts in December worth about USD286 million, according to the statement.

Three of the new contracts are five-year leases and the last is for 10 years, SIPS said, adding that this indicates the lessee is upbeat about the supplier's technology.

The two gas rig deals are Sinopec International Petroleum Service's first in the Middle East, and should lay a solid foundation for future expansion into the business, it added.

Editor: James Boynton