BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 29.Apr.2025) — Nabors Industries Ltd., through its 50/50 joint venture in Saudi Aramco Nabors Drilling Company (SANAD) with Saudi Aramco, expects 3 newbuild rigs to commence operations during the balance of 2025. This, after SANAD began operating its tenth newbuild rig during the first-quarter 2025 (1Q:25), and the eleventh in Apr. 2025.
The twelfth rig is expected to commence late in the 2Q:25, while 2 additional rigs are slated for startup in the second-half 2025 (2H:25).
As these rigs come online, they should make a material contribution to SANAD’s adjusted EBITDA while supporting their customer’s program to maintain production capacity and develop its natural gas resources, Nabors announced on 29 Apr. 2025 in its 1Q:25 financial press release.
SANAD is 1 of the anchor projects that has emerged from Saudi Arabia’s efforts to introduce world-class industry hubs locally, in order to foster economic growth and job creation.
Both Nabors and Saudi Aramco have made contributions of equal value consisting of cash and/or assets into the entity. SANAD looks to acquire and operate 50 locally-sourced newly constructed rigs over a 10-year period, at defined contracted economics.
“SANAD, with its newbuild program totaling 50 rigs over 10 years, is growing rapidly and provides a source of significant value to Nabors and our shareholders,” Nabors chairman, CEO and president Anthony G. Petrello said in the press release.
“SANAD is on track to operate 15 newbuild rigs by early 2026, with additional newbuilds already under discussion. The outlook for this program, and SANAD in total, is for considerable free cash generation, which should lead to material value creation for our shareholders,” Petrello said.
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By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
