Nabors Industries reported the commencement of operations of Saudi Aramco Nabors Drilling Company (SANAD), the previously announced 50/50 joint venture between Saudi Aramco and Nabors. SANAD is one of the anchor projects that has emerged from Saudi Arabia’s efforts to introduce world-class industry hubs locally, in order to foster economic growth and job creation.
Nabors Chairman, President and CEO Anthony G. Petrello stated, “SANAD represents a new paradigm in the operator / contractor relationship. This pioneering partnership between the world’s largest oil producer and land driller represents a new era in our decades-long relationship with Saudi Aramco and a key element in the advancement of the Kingdom’s Vision 2030. It is also an exceptional opportunity to achieve significantly higher operating efficiency and well productivity through the implementation of new cost-effective technologies and practices.”
Nabors and Saudi Aramco have made contributions of equal value consisting of cash and/or assets into the entity. Additionally, Nabors and Saudi Aramco have agreed that SANAD will purchase and operate 50 locally-sourced newly constructed rigs over a 10 year period, at defined contracted economics