US independent Chesapeake Energy has reached an agreement with Nabors Industries that will make Nabors its preferred drilling contractor across its shale oil and natural gas assets.
Once one of the largest independent producers in the US, Chesapeake contracted considerably in the years leading up to its 2019 bankruptcy filing.
When the company emerged from Chapter 11 bankruptcy in February of this year, Chesapeake executives said the company would refocus on unconventional natural gas production.
In a statement released Thursday, the two companies said they had both played significant roles in advancing the industry’s “digital maturity”, and they would now work together to forge a new generation of drilling technology.
"Operating safely, efficiently, and responsibly is core to Chesapeake's commitment to leading a responsible energy future, and we look forward to partnering with Nabors to drive further improvements across our drilling program,” said Roi Lam, Chesapeake’s vice president for drilling.
Nabors chairman, chief executive officer and president Anthony Petrello said his company was looking forward to collaborating with Chesapeake to achieve new technology goals.
“We aim to innovate the future of energy and it is through relationships and collaborations that we will achieve our ambition,” he said. “We will continue to push the envelope and develop new solutions that further empower real-time decisions aimed at improving safety, efficiency and our customers' environmental footprint."
Chesapeake is currently operating in the Haynesville shale of Louisiana; Appalachia; the Powder River basin of Wyoming and multiple locations across Texas. In the second quarter of this year, its production mix consisted of 77% natural gas, 17% oil and 8% natural gas liquids.