Nabors is the largest land drilling contractor in the world, with almost 600 land
drilling rigs. We conduct oil, gas and geothermal land drilling operations in
the U.S. Lower 48 states, Alaska, Canada, South and Central America, the Middle
East, the Far East, and Africa. We are also one of the largest land well-servicing
and workover contractors in the United States and Canada. We own approximately
750 land workover and well-servicing rigs in the United States, primarily in the
southwestern and western United States, and approximately 200 land workover and
well-servicing rigs in Canada. Nabors is a leading provider of offshore platform
workover and drilling rigs, and owns 45 platform, 16 jack-up and three barge rigs
in the Gulf of Mexico and international markets. These rigs provide well-servicing,
workover and drilling services. We also have a 50% ownership interest in a joint
venture in Saudi Arabia, which owns 17 rigs.
To further supplement and complement our primary business, we offer a wide range
of ancillary well-site services, including engineering, transportation, construction,
maintenance, well logging, directional drilling, rig instrumentation, data collection
and other support services in selected domestic and international markets. Our
land transportation and hauling fleet includes approximately 240 rig and oilfield
equipment hauling tractor-trailers and a number of cranes, loaders and light-duty
vehicles. We maintain approximately 300 fluid hauling trucks, approximately
800 fluid storage tanks, ten salt water disposal wells and other auxiliary equipment
used in drilling, workover and well-servicing operations in the United States.
In addition, we time charter a fleet of 31 marine transportation and supply
vessels, which provide transportation of drilling materials, supplies and crews
for offshore operations primarily in the Gulf of Mexico. We manufacture and
lease or sell top drives for a broad range of drilling applications, directional
drilling systems, rig instrumentation and data collection equipment, and rig
reporting software. We have also made selective investments in oil and gas exploration,
development and production activities, most recently with El Paso Corporation.
The majority of our business is conducted through our various Contract Drilling
operating segments, which include our drilling, workover and well-servicing
operations, on land and offshore. Our operating segments engaged in marine transportation
and supply services, drilling technology and top drive manufacturing, directional
drilling, rig instrumentation and software, and construction and logistics operations
are aggregated in a category labeled Other Operating Segments for segment reporting
purposes. Our limited oil and gas exploration, development and production operations
are included in a category labeled Oil and Gas for segment reporting purposes.
Our rigs include land-based rigs and offshore platform, jack-up and barge rigs.
Drilling rigs come in a wide variety of sizes and capabilities, and may include
specialized equipment, such as top drives, or have design features or modifications
for specialized drilling conditions, such as arctic drilling. The rigs are classified
by their depth capabilities and by whether their power systems are mechanical
or electric. They generally are powered by two to four large diesel engines.
An electric rig differs from a mechanical rig in that it converts the diesel
power into electricity to power the rig. This gives the rig operator the ability
to deliver the same amount of torque at high and low speeds, permitting more
finite control of the primary rig components, including the drawworks and mud
pumps. We believe this electric capability enhances operating efficiency and
safety, reduces drilling time and saves the customer money, particularly in
deeper applications. Because of these advantages, diesel electric rigs, known
in the industry as silicon-controlled rectifier or SCR rigs, generally are preferred
by our customers, and often enjoy higher utilization and dayrates than similarly
sized mechanical rigs.
Our customers include major oil and gas companies, foreign national oil and
gas companies and independent oil and gas companies.
Our industry remains very competitive. The number of rigs continues to exceed
demand in many of our markets, resulting in strong price competition. Many rigs
can be readily moved from one region to another in response to changes in levels
of activity, which may result in an oversupply of rigs in such areas. Many of
the total available contracts are currently awarded on a bid basis, which further
increases competition based on price. The land drilling, workover and well-servicing
market is generally more competitive than the offshore market due to the larger
number of rigs and market participants.
Nabors has two primary competitors, Doyon Drilling, Inc. and Nordic Calista
Services. Kuukpik Drilling has also made attempts to enlarge its presence in
this market. In Canada and offshore, Nabors competes with many firms of varying
size, several of which have more significant operations in those areas than
Nabors.
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