Nabors Continues To Shed Assets
Bermuda’s Nabors Industries Ltd. on Monday [Mar. 26] detailed plans to shed its oil and gas properties and other non-core businesses as the drilling contractor seeks to refocus amid a change in leadership.
In a securities filing, Nabors said it hopes to raise at least $800 million selling energy fields in Texas, Canada, Alaska and Colombia as well as an Alaskan oilfield service business, three Canadian service units and 18 shallow-water rigs.
Nabors’ began selling its oil and gas fields late last year and its plans to broaden divestitures were first reported last month by “The Wall Street Journal”.
Nabors, which is registered in Bermuda but has operational headquarters in Houston, owns the world’s largest fleet of land rigs, with more than 1,200. It also has oilfield service operations and 50 offshore rigs.
Mr. Petrello was named chief executive in October. He succeeded Eugene Isenberg, who remains chairman. The change could have generated for Mr. Isenberg what would have been one of the largest largest termination payments in corporate history. But Nabors said in early February that he would waive the $100 million payment.
The company said it is in the process of selling oil-and-gas fields in Colombia, Alaska’s North Slope and the Eagle Ford Shale in south Texas, and should complete those deals in the second half of this year. It expects those assets to return between $300 million and $400 million. It will also sell energy-producing properties in western Canada’s Horn River Basin and its 49.7% stake in oil and gas producer NFR Energy. It gave no estimate on the value of those assets.
Nabors expects to raise another $300 million to $400 million selling Peak Oilfield Services business in Alaska and three Canadian service units, including one that utilizes helicopters to service rigs when roads are impassible. The company didn’t suggest a value of the offshore rigs it plans to sell, 10 of which are in the US Gulf of Mexico and the rest of which are stationed in international shallow waters.
