Nabors Drilling International Limited

Introduction to Nabors Drilling International Limited

Nabors 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.

An 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

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

Overview: Nabors Acquisitions

> Samson Rig Co, Chelsey Pruett, Adcor-Nicklos > Cleveland > Veco and Diamond L > Can-Tex & New Prospect > MMI > Bayard > Pool > Enserco > Ryan Energy Technologies

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

Nabors then and now

1987 Global Revenue Net Income Earnings Per Share Worldwide Land Rig Count
Workover Rigs Drilling Rigs

2008 $5.28 Billion $551 Million $1.93 1291

763 528

$33 Million ($21 Million) ($5.90) 45

8 37

Worldwide Employment Market Capitalization Shareholders Equity Cash & Equivalent

1,250 $35 Million ($27 Million) $6 Million

26,000 $5.52 Billion $4.6 Billion $1.11 Billion

Incorporated into S&P 500 Index in October 2000

Nabors Corporate Structure

Nabors Industries

Nabors Drilling USA

Nabors Drilling Limited (Canada) Nabors Drilling International Ltd.

Nabors Well Services Type Title Here Nabors Offshore Services

Epoch

Peak Logistics

Canrig Drilling Technologies

Nabors Alaska Drilling

Overview: A Global Company

Globally Positioned Portfolio of High-End 9 Assets

763 LAND WORKOVER RIGS

534 LAND DRILLING RIGS

13 JACK-UPS
> 8 Drilling > 5 Workover

3 BARGE
RIGS
DRILLING INSTRUMENTATION

39 PLATFORM RIGS
> 23 Workover/ReDrilling > 14 Drilling
TOP DRIVE MANUFACTURING OILFIELD SERVICES

People The Foundation of Every Company

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

> 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

People Training Matrix

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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.

People Engineering Expertise

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Nabors Drilling International Limited Equation for success

Engineering experience and expertise in rig enhancement + High quality assets + Strategic Acquisitions

> This experience allows us to develop our assets to their maximum potential, 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

People 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.
Foster change management and put into action Training to spread the word Benchmarking: measure how we are doing Knowledge capture in lessons learned and processes

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

Management Systems

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> 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 employees role

> Allows Nabors to quickly adjust to our customers ever evolving needs > Continually improved to ensure effectiveness

Safety and Quality assurance is built into each step

Systems Business Management

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QMS Quality Management System

The system we use to guide our management

HMS
Houston Management System HSE MS
Documents Relevant to Houston Office

AMS
Area Management System HSE MS
Documents Relevant to Area Office

RMS
Rig Management System HSE MS
Documents Relevant to Rig Site

Assets Broad Service Capabilities

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Oilfield Logistics and Facilities

Drilling Instrumentation and Measurements

Drilling And Workover Rigs

Rig Component Manufacturing

Rig Refurbishment and Construction

Overview: 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

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Overview: Drilling Rigs with Potential Application in XXX continued

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Loadmaster Big Easy 550 Basic Specs Loadmaster 1000HP Drawworks VFD Controlled AC Motor 550 Kip Static Hookload 2 x 1600HP Triplex Mud Pumps Automatic Driller Fast Moving

Overview: 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

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Examples of Innovative New Rig Designs

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> FDPSO (Floating Drilling Production Storage Offloading) > Mini MASE (Minimum Area SelfElevating 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

Offshore - 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

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Offshore - MODS Rig

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> 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