-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 QzZ8v0bjr9iePsB9LmLP+o2rw1mhcNTkaheR5PqIh183OqmtCMyAM3RuuPr2yjor
 TUC363YCBUHpolHoE5DDHA==

<SEC-DOCUMENT>0001179110-08-021445.txt : 20081223
<SEC-HEADER>0001179110-08-021445.hdr.sgml : 20081223
<ACCEPTANCE-DATETIME>20081223163728
ACCESSION NUMBER:		0001179110-08-021445
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081222
FILED AS OF DATE:		20081223
DATE AS OF CHANGE:		20081223

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KEY ENERGY SERVICES INC
		CENTRAL INDEX KEY:			0000318996
		STANDARD INDUSTRIAL CLASSIFICATION:	DRILLING OIL & GAS WELLS [1381]
		IRS NUMBER:				042648081
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1301 MCKINNEY STREET
		STREET 2:		SUITE 1800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77010
		BUSINESS PHONE:		713-651-4300

	MAIL ADDRESS:	
		STREET 1:		1301 MCKINNEY STREET
		STREET 2:		SUITE 1800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77010

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KEY ENERGY GROUP INC
		DATE OF NAME CHANGE:	19950217

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NATIONAL ENVIRONMENTAL GROUP INC
		DATE OF NAME CHANGE:	19921228

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	YANKEE COMPANIES INC
		DATE OF NAME CHANGE:	19891012

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			AUSTIN WILLIAM M
		CENTRAL INDEX KEY:			0001013065
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT [3721]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08038
		FILM NUMBER:		081267785

	BUSINESS ADDRESS:	
		STREET 1:		2101 CITYWEST BLVD
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77042
		BUSINESS PHONE:		713-757-5502

	MAIL ADDRESS:	
		STREET 1:		C/O KEY ENERGY SERVICES, INC.
		STREET 2:		1301 MCKINNEY STREET, SUITE 1800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77010
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-12-22</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000318996</issuerCik>
        <issuerName>KEY ENERGY SERVICES INC</issuerName>
        <issuerTradingSymbol>KEG</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001013065</rptOwnerCik>
            <rptOwnerName>AUSTIN WILLIAM M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1301 MCKINNEY STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1800</rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77010</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>SVP and CFO</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-12-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>F</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6076</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.42</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>200068</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Payment of tax liability by delivery of stock incident to the vesting on December 22, 2008 of 16,667 shares of restricted stock.</footnote>
        <footnote id="F2">Vesting price is based on the closing price of common stock on December 19, 2008, pursuant to the Key Energy Services, Inc. 1997 Incentive Plan (the &quot;1997 Plan&quot;).</footnote>
        <footnote id="F3">Includes 94,508 unvested restricted stock shares granted under the 1997 Plan and Key Energy Services, Inc.'s 2007 Equity and Cash Incentive Plan.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By Kimberly R. Frye, Attorney-in-fact for William M. Austin</signatureName>
        <signatureDate>2008-12-22</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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