IPAA Workforce Committee

1. IPAA Workforce Committee Joe HudsonPresident & COO Nabors Drilling USA, L.P.

2. Nabors Drilling USA, L.P.

3. Nabors Drilling USA, L.P.

4. Nabors Drilling USA, L.P. • Recruiting • Employee Referrals • Internet • Media Advertisements • Job Fairs • Military Outplacement • High School Visitations

5. Nabors Drilling USA, L.P. • Training • Shortage of skilled labor for our industry increased the need to provide training. • Nabors met this challenge by: • Allocating $40 m for training - 2006. • Strategically placing training centers across the US. • Developing simulators for rig based positional training. • Developing positional training sessions and competency testing.

6. Nabors Drilling USA, L.P. • Training Center Locations • Rocky Mountain Center – Casper, Wyoming • Gulf Coast Center – Houma, Louisiana • Mid-Continent Center – Oklahoma City, Oklahoma • East Texas Center – Tyler, Texas (Opening Fall 2006) • Training Center Features • Fully functional rig • Positional Simulators • Field realistic work environment • Trainees/Trainers stay on location

7. Nabors Drilling USA, L.P. Rocky Mountain Training Center

8. Nabors Drilling USA, L.P. Gulf Coast Training Center

9. Nabors Drilling USA, L.P. Mid-Continent Training Center

10. Nabors Drilling USA, L.P. • Floorman Training Seven day/12 hours/day course teaching new hires all aspects of the position: • Roles and responsibility • Introduction to JSA’s • STOP, LO/TO, Hand & Pinch Point Safety • Fall protection, Hazard Identification/Assessment • 56 hours hands-on best practices for tripping in and out of hole, making connections, tong operations, slip usage.

11. Nabors Drilling USA, L.P. • Motorman Training Three day/12 hours/day course teaching all aspects of the position: • Roles and responsibilities • Tasks associated with rig operations and rig moves • SCR system – inspection • Engine inspection – online and offline operation • Electrical components • Accumulator maintenance and operation • Equipment inspection, maintenance, fluid level checks

12. Nabors Drilling USA, L.P. • Derrickman Training Three day/12 hours/day course teaching all aspects of the position : • Dressing the board • Mud pump/mud tank operations • Safe handling of chemicals • Drilling fluids, blow out prevention basics • Positional fall protection • Tripping pipe in & out

13. Nabors Drilling USA, L.P. Derrickman Simulator

14. Nabors Drilling USA, L.P. • PACE Driller/Toolpusher Training Simulator with visuals teaching functionality of cyber chair drilling. Five day/8 hours/day course covering: • Differences in power, control, rig up/down, moves • Advances in automated control systems • Touch screen control technology • Cyber chair drilling – “joy stick” controls • Well control problem solving • BOP controls

15. Nabors Drilling USA, L.P. PACE Rig Simulator

16. Nabors Drilling USA, L.P. • 2006 Training Capacity – 2800 students • Employee Development Programs focused on careers

17. Nabors Drilling USA, L.P. Industry Challenges • Shortage of skilled labor • Retention • Changing technology • Bridging the gap with academia