Under the terms of the two contracts, Nabors will supply and operate the two 3,000-HP rigs for onshore drilling operations over a period of five-years.

The procurement of rigs has become increasingly expensive over the past two years as as oil companies ramp up their exploration and development activities to meet the rising global demand for increased crude production.

Over the last 24 months, KOC alone has spent more than $1bn in procuring rig equipment. Earlier this year, it awarded the local United Precision Drilling Company a similar KD23.4m ($84m) contract to supply and operate a deep drilling rig (MEED 19:2:08).