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IPAA Workforce Committee Joe Hudson President & COO Nabors Drilling USA, L. P. IPAA Workforce Committee Joe Hudson President & COO Nabors Drilling USA, L. P.

Nabors Drilling USA, L. P. Nabors Drilling USA, L. P.

Nabors Drilling USA, L. P. Nabors Drilling USA, L. P.

Nabors Drilling USA, L. P. • Recruiting • • • Employee Referrals Internet Media Nabors Drilling USA, L. P. • Recruiting • • • Employee Referrals Internet Media Advertisements Job Fairs Military Outplacement High School Visitations

Nabors Drilling USA, L. P. • Training • Shortage of skilled labor for our Nabors Drilling USA, L. P. • Training • Shortage of skilled labor for our industry increased the need to provide training. • Nabors met this challenge by: • • Allocating $40 m for training - 2006. Strategically placing training centers across the US. Developing simulators for rig based positional training. Developing positional training sessions and competency testing.

Nabors Drilling USA, L. P. • Training Center Locations • • Rocky Mountain Center Nabors Drilling USA, L. P. • Training Center Locations • • Rocky Mountain Center – Casper, Wyoming Gulf Coast Center – Houma, Louisiana Mid-Continent Center – Oklahoma City, Oklahoma East Texas Center – Tyler, Texas (Opening Fall 2006) • Training Center Features • • Fully functional rig Positional Simulators Field realistic work environment Trainees/Trainers stay on location

Nabors Drilling USA, L. P. Rocky Mountain Training Center Nabors Drilling USA, L. P. Rocky Mountain Training Center

Nabors Drilling USA, L. P. Gulf Coast Training Center Nabors Drilling USA, L. P. Gulf Coast Training Center

Nabors Drilling USA, L. P. Mid-Continent Training Center Nabors Drilling USA, L. P. Mid-Continent Training Center

Nabors Drilling USA, L. P. • Floorman Training Seven day/12 hours/day course teaching new Nabors Drilling USA, L. P. • Floorman Training Seven day/12 hours/day course teaching new hires all aspects of the position: • • • Roles and responsibility Introduction to JSA’s STOP, LO/TO, Hand & Pinch Point Safety Fall protection, Hazard Identification/Assessment 56 hours hands-on best practices for tripping in and out of hole, making connections, tong operations, slip usage.

Nabors Drilling USA, L. P. • Motorman Training Three day/12 hours/day course teaching all Nabors Drilling USA, L. P. • Motorman Training Three day/12 hours/day course teaching all aspects of the position: • • Roles and responsibilities Tasks associated with rig operations and rig moves SCR system – inspection Engine inspection – online and offline operation Electrical components Accumulator maintenance and operation Equipment inspection, maintenance, fluid level checks

Nabors Drilling USA, L. P. • Derrickman Training Three day/12 hours/day course teaching all Nabors Drilling USA, L. P. • Derrickman Training Three day/12 hours/day course teaching all aspects of the position : • • • Dressing the board Mud pump/mud tank operations Safe handling of chemicals Drilling fluids, blow out prevention basics Positional fall protection Tripping pipe in & out

Nabors Drilling USA, L. P. Derrickman Simulator Nabors Drilling USA, L. P. Derrickman Simulator

Nabors Drilling USA, L. P. • PACE Driller/Toolpusher Training Simulator with visuals teaching functionality Nabors Drilling USA, L. P. • PACE Driller/Toolpusher Training Simulator with visuals teaching functionality of cyber chair drilling. Five day/8 hours/day course covering: • • • Differences in power, control, rig up/down, moves Advances in automated control systems Touch screen control technology Cyber chair drilling – “joy stick” controls Well control problem solving BOP controls

Nabors Drilling USA, L. P. PACE Rig Simulator Nabors Drilling USA, L. P. PACE Rig Simulator

Nabors Drilling USA, L. P. • 2006 Training Capacity – 2800 students • Employee Nabors Drilling USA, L. P. • 2006 Training Capacity – 2800 students • Employee Development Programs focused on careers

Nabors Drilling USA, L. P. Industry Challenges • Shortage of skilled labor • Retention Nabors Drilling USA, L. P. Industry Challenges • Shortage of skilled labor • Retention • Changing technology • Bridging the gap with academia