Joint Ventures

12 Months Ended

Dec. 31, 2025

Joint Ventures

Joint Ventures

Note 12 Joint Ventures

During 2016, we entered into an agreement with Saudi Aramco to form a new joint venture, SANAD, to own, manage and operate onshore drilling rigs in the Kingdom of Saudi Arabia. SANAD is equally owned by Saudi Aramco and Nabors.

During 2017, Nabors and Saudi Aramco each contributed $20 million in cash for the purpose of capitalizing the joint venture upon formation. In addition, since inception Nabors and Saudi Aramco have each contributed a combination of drilling rigs, drilling rig equipment and other assets, including cash, each with a value of approximately $394 million to the joint venture. The contributions were received in exchange for redeemable ownership interests that accrue interest annually, have a twenty-five-year maturity and are required to be converted to authorized capital should certain events occur, including the accumulation of specified losses. In the accompanying condensed consolidated balance sheet, Nabors has reported Saudi Aramco’s share of authorized capital as a component of noncontrolling interest in equity and Saudi Aramco’s share of the redeemable ownership interests as redeemable noncontrolling interest in subsidiary, classified as mezzanine equity. As of December 31, 2025 and December 31, 2024, the amount included in redeemable noncontrolling interest was $482.4 million and $453.3 million, respectively. The accrued interest on the redeemable ownership interest is a non-cash financing activity and is reported as an increase in the redeemable noncontrolling interest in subsidiary line in our condensed consolidated balance sheet. The assets and liabilities included in the condensed balance sheet below are (a) assets that can either be used to settle obligations of the VIE or be made available in the future to the equity owners through dividends, distributions or in exchange of the redeemable ownership interests (upon mutual agreement of the owners) or (b) liabilities for which creditors do not have recourse to other assets of Nabors.

The condensed balance sheet of SANAD, as included in our consolidated balance sheet, is presented below.

	December 31,
	2025		2024
	(In thousands)
Assets:
Cash and cash equivalents	$	179,907	$	229,442
Accounts receivable		101,382		111,497
Other current assets		8,107		12,122
Property, plant and equipment, net		1,068,919		862,031
Other long-term assets		18,497		12,404
Total assets	$	1,376,812	$	1,227,496
Liabilities:
Accounts payable	$	102,543	$	112,373
Accrued liabilities		30,694		12,447
Other liabilities		62,306		47,254
Total liabilities	$	195,543	$	172,074