National Oilwell And Nabors Extend Purchasing Alliance

National-Oilwell, Inc. announced that Nabors Industries and National Oilwell have extended their purchasing alliance agreement through 2006. Worldwide, the Nabors companies actively market over 500 land drilling and 740 land workover and well-servicing rigs, and 37 platform, 11 jack-up and four barge rigs. The alliance allows Nabors to leverage purchasing activities, streamline procurement procedures and significantly reduce materials management costs. Under the agreement, National Oilwell is the primary provider of maintenance, repair and operating commodities, expendables and OEM drilling spare parts -- estimated to exceed $300 million over the next five years -- for all the Nabors companies operations and locations.

Pete Miller, National Oilwell's President and Chief Executive Officer, said "This agreement continues our strong relationship with Nabors. We are grateful for the opportunity to continue to partner with Nabors in initiatives that will reduce their overall supply chain costs and offer the optimal product or service solution."

Gene Isenberg, Nabors' Chairman and Chief Executive Officer, stated "This alliance continues to benefit Nabors, National Oilwell, and, most importantly, our customers. It ensures that we will have what we need, when we need it -- whether it be spare parts or capital components."

National Oilwell is a worldwide leader in the design, manufacture and sale of comprehensive systems and components used in oil and gas drilling and production, as well as in providing supply chain integration services to the upstream oil and gas industry.