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Nabors aims to raise $800m in asset sale

Bermuda-domiciled drilling contractor Nabors Industries Ltd hopes to raise at least $800 million by selling off non-core assets.

In a regulatory filing yesterday, Nabors, which is run from Houston, Texas, detailed plans to shed oil and gas properties in Texas, Canada, Alaska and Colombia as well as an Alaskan oilfield service business, three Canadian service units and 18 shallow-water rigs.

In the filing, CEO Anthony Petrello admitted that Nabors “went wrong” by investing in exploration and production businesses. He added that the company’s stock buybacks were made with “unfortunate timing” and Nabors also missed out on growth opportunities in the US, he said. Mr Petrello took over as CEO last October, succeeding Eugene Isenberg, who remains chairman.

Nabors owns the world’s largest fleet of land rigs, with more than 1,200. It also has oilfield service operations and 50 offshore rigs.

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 percent 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 utilises 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.

Selling off assets: A Nabors facility in North Dakota. The Bermuda-based company is to sell off assets in an attempt to raise at least $800 million

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Published March 27, 2012 at 2:00 am (Updated March 27, 2012 at 9:52 am)

Nabors aims to raise $800m in asset sale

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