OTHER OPERATING SEGMENTS

Canrig

This unit achieved a more than 50 percent increase in operating income in 2010, largely driven by a significant increase in third-party capital equipment sales. Services and Rentals was also a major contributor as income from our ROCKIT® technology almost tripled.

Canrig absorbed its sister company, Academy Services in Canada, consolidating all manufac-turing operations into a single entity for greater efficiency. This unit also rolled out its innovative SUREGRIP™ casing running tool in 2010 and introduced ROCKIT® PILOT™ and ROCKIT® HEADS UP DISPLAY,™ both enhancements to our ROCKIT® technology that enable more efficient directional drilling control from the surface, utilizing our proprietary top drive software.

Canrig’s total recordable incident rate remained below 1.0 during the year, but this unit took steps to further improve performance and continue the corporate-wide Mission to Zero safety program. New safety initiatives now include an increased emphasis on advanced safety audits and a company-wide incentive rewarding projects that improve safety.

This unit expects to see a significant increase in operating income in 2011 again driven by an increase in third-party equipment sales, particularly in international markets, and the continued expansion of the aforementioned ROCKIT® technology in the various shale plays where it is replacing more expensive rotary steerables in drilling applications. Canrig’s ability to work in partnership with our International unit should also result in more rapid penetration of international markets in a cost-effective manner since the two will share existing facilities and infrastructure.

Ryan Energy Technologies

Results for Ryan were up for the year as activity and pricing improved in both the U.S. and Canada on the strength of a steadily increasing number of directional wells. The company also expanded into new geographic areas, most notably the oil-rich Niobrara Shale in the Rocky Mountains.

New technology continued to improve Ryan’s position in a very competitive marketplace. The company introduced the next generation of EM Telemetry designed to improve drilling efficiency by delivering survey data more rapidly. A new mud motor design was also deployed that is capable of drilling the curved and lateral sections of a well in one run, significantly reducing costs.

Safety remained a strong point for this unit with no lost-time accidents reported for the second year in a row.

The outlook for 2011 is strong with this unit’s Canadian operation having drilled more wells in the first quarter than ever before. A significant increase in directional wells is again projected and Ryan is opening new offices in Texas’ Permian Basin and in Pennsylvania’s Marcellus Shale to better service the increased demand there. Ryan is also using Nabors’ global infrastructure to expand internationally.

Ryan continues to test new technology in tandem with other Nabors units, particularly the deployment of Canrig’s ROCKIT® PILOT™ software on selected Nabors rigs as a means of improving efficiency while slide drilling.