Nabors reveals SEC probe over personal jet use

AP News
Posted: Nov 10, 2011 3:43 PM
Nabors reveals SEC probe over personal jet use

Nabors Industries said that it is cooperating with the SEC in an informal inquiry over prerequisites for executives, including how corporate jets were used by its executives.

The oil-drilling contractor first revealed the inquiry Wednesday in a filing with the Securities and Exchange Commission.

The possible use of Nabors' jets for personal travel was the focus of broader June story in The Wall Street Journal on corporate jets that frequently head to resort spots. The paper said that Nabors jets made frequent stops in places where Chairman Eugene Isenberg has homes, but Nabors reported no personal use of company aircraft by Isenberg in the last two years.

Isenberg, 81, is slated to receive $100 million in cash for giving up his title as CEO, though he is not leaving the company. The company announced in October that long-time executive Anthony G. Petrello would take over as CEO, triggering a payment to Isenberg that is more similar to a severance package. The cash payout exceeds the company's third-quarter net income of $74.3 million. `

The company said this week it first received an informal inquiry request from the SEC on Sept. 21 related to perquisites and personal benefits received by officers and directors. The company posted its third quarter earnings in late October.

Nabors Industries Ltd. is registered in Bermuda and headquartered in Houston.