The pair signed a memorandum of understanding which will run for six months, unless extended by both parties or is replaced by definitive agreements.
In a statement to the Malaysian stock exchange Handal said the MoU set out the framework for it to work with Nabors to explore business opportunities relating to Malaysian rig business, comprising drilling and workover operations.
It could lead the pair to jointly developing and marketing conventional workover rigs, as well as overhauling and maintenance, manufacturing or fabrication of new offshore pedestal cranes, offshore crane rental business, workover projects and related services.
