Joint Ventures

12 Months Ended

Dec. 31, 2019

Joint Ventures

Joint Ventures

Note 13 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, which is equally owned by Saudi Aramco and Nabors, began operations during the fourth quarter of 2017.

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 which 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 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 interests in subsidiary, classified as mezzanine equity.

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

	December 31,
	2019		2018
	(In thousands)
Assets:
Cash and cash equivalents	$	289,575	$	211,618
Accounts receivable		68,624		73,699
Other current assets		18,149		17,198
Property, plant and equipment, net		455,751		457,963
Other long-term assets		15,118		36,583
Total assets	$	847,217	$	797,061
Liabilities:
Accounts payable	$	64,365	$	60,087
Accrued liabilities		17,929		8,530
Total liabilities	$	82,294	$	68,617