Nabors Industries has received interest from multiple operators regarding potential oil and gas development work in Venezuela following the recent political change in the country. The company, which historically operated 18 rigs there, ceased operations in 2020 due to US sanctions and payment issues. It currently maintains five idle rigs and some personnel in Venezuela and is prepared to return pending suitable commercial and security terms, with discussions already underway.

Saudi Arabia Operations Update

Through its SANAD joint venture with Saudi Aramco, Nabors has received notices that two of its three suspended rigs in Saudi Arabia will resume operations in 2024. The first rig will restart in late first quarter, and the second in the second quarter, under extended existing contracts. Concurrently, SANAD chose not to renew three of its own, smaller rigs that generated minimal earnings. The joint venture is evaluating alternatives for these rigs and will utilize their experienced crews on other planned deployments.

Future Fleet Expansion

SANAD has a significant expansion plan, with five newbuild rigs scheduled for launch in 2026 and an additional one in 2027. The joint venture is also negotiating a fifth tranche of new rigs with Saudi Arabia, with discussions expected to conclude in the coming months. This latest tranche would bring SANAD's total newbuild fleet to 25 rigs. This reactivation and expansion occur in a broader context where, from a peak of 80 idled land rigs in Saudi Arabia, approximately 40 have now received notices to return to work.