Subsequent Event

9 Months Ended

Sep. 30, 2011


Note 14	Subsequent Event

On October 28, 2011, the Board of Directors appointed Anthony Petrello as President and Chief Executive Officer. Due to the transfer of the CEO responsibilities, Eugene Isenberg may be entitled to terminate his employment agreement with the Company and Nabors Delaware based on a Constructive Termination Without Cause. If he elects to do so, he may be entitled to a payment of $100 million from Nabors Delaware pursuant to the agreement. In addition, the agreement provides for Mr. Isenberg’s unvested restricted shares and stock options to vest immediately, any accrued but unpaid amounts (including a prorated annual bonus) owed to him to be paid, continued participation by him and his wife in our medical, dental and life insurance coverage, and the continuation of certain other executive benefits. Mr. Isenberg will have no unvested restricted shares or stock options at the time the charge discussed below is taken, and we do not believe that the value of any of the unaccrued benefits will be significant.

The Board also terminated the automatic extension contemplated in Mr. Isenberg’s employment agreement. In the event he does not terminate the agreement as described above, it will expire according to its terms on March 30, 2015.

As a result of these events, we have determined that it is probable that Nabors Delaware will be obligated to make the severance payment and intend to record a charge in the amount of our estimated obligation of approximately $100 million in our fourth-quarter results and year-end financial statements. See Note 8 Commitments and Contingencies.