Nabors Drilling International Limited

Introduction to Nabors Drilling International Limited

2Nabors International Vision Statement

“To be the preferred service provider in the drilling industry and deliver value to our customers and shareholders through world class leadership.”

3An Overview of Nabors

> Largest Drilling Contractor in the world> Core business is Drilling/Service rigs as well as

associated equipment/services> With operations in 25 countries and experience in

more than 50, Nabors is a Global Company> Nabors draws upon acquired expertise, economies of

scale, financial strength, highly developed QMS programs and global access for its Competitive Strategy

> Nabors has some of the Highest Technology Rigs in the world to serve the Libyan market

4Overview: Nabors Acquisitions

> Westburne Group> Loffland Brothers> Henley Drilling Co.> Canrig> Grace Drilling Co.> MND Drilling> Sundowner Offshore> Delta Drilling> Exeter Drilling> Noble land fleet> Epoch Well-logging

November 1988February 1990November 1990June 1991June 1993April 1994October 1994January 1995March 1996November 1996December 1996

5Overview: Nabors Acquisitions

> Samson Rig Co, ChelseyPruett, Adcor-Nicklos

> Cleveland> Veco and Diamond “L”> Can-Tex & New Prospect> MMI> Bayard> Pool> Enserco> Ryan Energy Technologies

April 1997

August 1997November 1997May 1998June 1998March 1999December 1999April 2002October 2002

6

1987 2008

Global Revenue $33 Million $5.28 Billion

Net Income ($21 Million) $551 Million

Earnings Per Share ($5.90) $1.93

Worldwide Land Rig Count 45 1291Workover Rigs 8 763

Drilling Rigs 37 528

Worldwide Employment 1,250 26,000

Market Capitalization $35 Million $5.52 Billion

Shareholders Equity ($27 Million) $4.6 Billion

Cash & Equivalent $6 Million $1.11 Billion

Incorporated into S&P 500 Index in October 2000

Nabors then and now…

7Nabors’ Corporate Structure

Nabors Drilling USA Nabors Drilling Limited(Canada)

Nabors Well ServicesType Title Here

Nabors Drilling International Ltd.

Nabors Offshore Services Epoch

Peak Logistics Canrig Drilling Technologies

Nabors Alaska Drilling

Nabors Industries

8Overview: A Global Company

9

13 JACK-UPS> 8 Drilling> 5 Workover

3 BARGE RIGS

39 PLATFORM RIGS> 23 Workover/Re-Drilling> 14 Drilling

763 LAND WORKOVER RIGS 534 LAND DRILLING RIGS

DRILLINGINSTRUMENTATION

TOP DRIVEMANUFACTURING

OILFIELDSERVICES

Globally Positioned Portfolio of High-End Assets

10People – The Foundation of Every Company

> These Drilling Professionals are the future of NDIL

• Management development • The NDIL ambassadors to the world

market> Employees come to us because

• Focus on safety• We train our people

– Technical – Soft skills training

• Opportunities for growth• Cross company transfers

> We have built a diverse workforce• 45 nationalities currently employed by

Nabors International

“Our Goal is to develop Drilling Professionals, not just rig crews.”

11People – Training Matrix

⇒ Indicates the required training for that position.

⇒ Stuck Pipe Training is available and given at the request of the Area Manager or Operator.

⇒ Required if the assigned rig has this equipment.

« New Employee Orientation as per HSE-WI-18.0 in the HSE-MS manual.

« Well Control Training is IADC WellCap unless otherwise specified by Operator or approved by Training Manager.

12People – Engineering Expertise

> This experience allows us to develop our assets to their maximumpotential, without over leveraging the company

> Nabors is able to engineer the equipment so it is safe to operate –safety system are part of the rig

> Nabors engineering projects • FDPSO• MASE and Mini MASE• Sundowner Series• MODS• Leap Frog

> The engineering expertise enables us to find new ways of improving our customers drilling programs

Nabors Drilling International LimitedEquation for success

Engineering experience and expertise in rig enhancement

+High quality assets

+Strategic Acquisitions

13People – Performance Culture

> Developing a performance “culture” requires• Benchmarking – look for performance patterns

• Knowledge capture• Communicate the knowledge

• Put the knowledge in to action

• Check the “Benchmarks”and start the process again.

> The performance “culture”is supported by our business management systems.

Benchmarking:measure howwe are doing

Foster change managementand put into

action

Trainingto spreadthe word

Knowledgecapture in

lessons learned and processes

14Management Systems

> Based upon ISO 9001:2000 International Quality Standard

• Represents every aspect of how we conducted business

> Considered our “Recipe For Success”; Our strategy!

• Provides standards and guidelines for operations and defines each employee’s role

> Allows Nabors to quickly adjust to our customer’s ever evolving needs

> Continually improved to ensure effectiveness

“Safety and Quality assurance is built into each step”

15

QMS – Quality Management SystemThe system we use to guide our management

HMSHouston

ManagementSystem

AMSArea

ManagementSystem

RMSRig

ManagementSystem

DocumentsRelevant toArea Office

DocumentsRelevant to

Houston Office

DocumentsRelevant to

Rig Site

HSEMS

HSEMS

HSEMS

Systems – Business Management

16Assets – Broad Service Capabilities

Drilling And

WorkoverRigs

Rig ComponentManufacturing

Drilling Instrumentation

and Measurements

Oilfield Logistics and Facilities

Rig Refurbishment and Construction

17Overview: General Characteristics of Nabors Rigs> Designed to move fast> Designed to minimize flat

time> Designed to work in any

environment> All rigs are “plug and play”> Adjustments or changes to

configurations are easily made

> Adaptable to traditional or pad drilling

> Safe and Efficient

18Overview: Drilling Rigs with Potential Application in XXX continued…

•Loadmaster Big Easy 550–Basic Specs

Loadmaster 1000HP DrawworksVFD Controlled AC Motor

» 550 Kip Static Hookload» 2 x 1600HP Triplex Mud Pumps» Automatic Driller

–Fast Moving

19Overview: Drilling Rigs with Potential Application in XXX continued…

> Programmable A/C Electric (“PACE”) Rigs•3000, 2000, 1500, 1000 & 750HP Rigs

•Fast Moving, Fast Rig Up/Down

•Can utilize A/C or D/C Drawworks

•Self – elevating structure moves in three loads

> Value added equipment– Canrig TDS– BOP Handling System– Rotating Mousehole– Iron Roughneck– Air powered Slips– Automated Catwalk

20Examples of Innovative New Rig Designs

> FDPSO (Floating Drilling Production Storage Offloading)

> Mini MASE (Minimum Area Self-Elevating Rig) Platform Rig

• Designed to work on very small platforms

> MODS (Modular Offshore Dynamics Series) platform rig

• Deepwater SPAR & TLP platforms

> Millennium Workover Rig• New generation 500 horsepower workover rig

> PACE II Land Drilling System• Latest generation land rig• Fastest moving rigs in their class• Greater flexibility• Nabors equity partner in manufacturing

facility

21Offshore - Mini MASE Rig

> Modular design> Engineered to match

customer needs•Compact to fit on small platforms

•Highly efficient drilling system –Top drive–PLC controls–Greater hydraulic

horsepower•Fast rig moves between platforms

22Offshore - MODS Rig

> MODS (Modular Offshore Dynamic Series)–A/C drives based on Commander class drilling rig design

•PLC controls provide extra safety features to protect crews and equipment

> Capable of rigging up on conventional platforms, TLPs and Spars

Nabors International