Nabors' Subsidiaries Enter Agreement with MPO
Nabors announced its wholly owned subsidiaries Canrig Drilling Technology International Ltd. and Canrig Drilling Technology Ltd. (collectively, "Canrig") have entered into long-term agreements with Managed Pressure Operations International Ltd. ("MPO") whereby Canrig will license from MPO certain technologies related to managed pressure drilling ("MPD"). MPO is a leading provider of MPD solutions including its Non-Stop Driller and Total Control Driller. The Canrig license is exclusive to several major onshore markets, including North, Central and South America and Saudi Arabia. In addition, Canrig will have non-exclusive rights in other onshore markets. The agreements also facilitate technological and engineering collaboration between Canrig and MPO in developing more advanced, cost-efficient MPD systems.
Chris Papouras, Canrig's President, commented, "Over 70% of Nabors US rigs are doing some form of managed pressure drilling utilizing third party equipment and technology. A primary goal of this venture is to develop and implement a fleet of MPD-Ready(TM) rigs across the global operations of Nabors utilizing these leading edge technologies. We extensively evaluated the various MPD systems and concluded that MPO was the best alternative to facilitate our entry into this growing area, while creating economies and efficiencies for our customers."
Charlie Orbell, CEO of MPO, commented, "The relationship with Nabors and Canrig allows for a rapid deployment of our leading edge technology within Nabors' key onshore markets while MPO builds its business in the other land markets and offshore. This agreement will also lead to the further development of MPD systems that will help customers drill wells faster, safer and at a lower cost."
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