VARIABLE INTEREST ENTITIES	9 Months Ended
Sep. 30, 2011
VARIABLE INTEREST ENTITIES	NOTE 18. VARIABLE INTEREST ENTITIES On March 7, 2010, we entered into an agreement with AlMansoori Petroleum Services LLC (“AlMansoori”) to form the joint venture AlMansoori Key Energy Services LLC under the laws of Abu Dhabi, UAE. The purpose of the joint venture is to engage in conventional workover and drilling services, pressure pumping services, coiled tubing services, fishing and rental tools and services, rig monitoring services, pipe handling services, fluids, waste treatment, and handling services, and wireline services. AlMansoori holds a 51% interest in the joint venture while we hold a 49% interest. Future capital contributions to the joint venture will be made on equal terms and in equal amounts and any future share capital increases will be issued in proportion to the initial share capital percentages but paid for by AlMansoori and Key in equal amounts. Also, we share the profits and losses of the joint venture on equal terms and in equal amounts with AlMansoori. However, we hold three of the five board of directors seats and a controlling financial interest. The joint venture does not have sufficient resources to carry on its activities without our financial support, and as such we have determined it to be a variable interest entity of which we are the primary beneficiary. We consolidate the entity in our financial statements. For the three and nine months ended September 30, 2011, we recognized $3.1 million and $7.3 million of revenue, respectively, and $0.2 million and $0.9 million of net income, respectively, associated with this joint venture. For the three and nine months ended September 30, 2010, we recognized no revenue or net income associated with this joint venture. Also, we have guaranteed the performance of the joint venture under its sole services contract valued at $2 million. At September 30, 2011, there were approximately $8.0 million of assets and $8.6 million of liabilities in the joint venture. There are no restrictions on the use of assets and liabilities associated with the joint venture. Also, creditors of the joint venture have no recourse against us other than the $2 million performance guarantee previously mentioned.

NOTE 18. VARIABLE INTEREST ENTITIES

On March 7, 2010, we entered into an agreement with AlMansoori Petroleum Services LLC (“AlMansoori”) to form the joint venture AlMansoori Key Energy Services LLC under the laws of Abu Dhabi, UAE. The purpose of the joint venture is to engage in conventional workover and drilling services, pressure pumping services, coiled tubing services, fishing and rental tools and services, rig monitoring services, pipe handling services, fluids, waste treatment, and handling services, and wireline services. AlMansoori holds a 51% interest in the joint venture while we hold a 49% interest. Future capital contributions to the joint venture will be made on equal terms and in equal amounts and any future share capital increases will be issued in proportion to the initial share capital percentages but paid for by AlMansoori and Key in equal amounts. Also, we share the profits and losses of the joint venture on equal terms and in equal amounts with AlMansoori. However, we hold three of the five board of directors seats and a controlling financial interest. The joint venture does not have sufficient resources to carry on its activities without our financial support, and as such we have determined it to be a variable interest entity of which we are the primary beneficiary. We consolidate the entity in our financial statements.

For the three and nine months ended September 30, 2011, we recognized $3.1 million and $7.3 million of revenue, respectively, and $0.2 million and $0.9 million of net income, respectively, associated with this joint venture. For the three and nine months ended September 30, 2010, we recognized no revenue or net income associated with this joint venture. Also, we have guaranteed the performance of the joint venture under its sole services contract valued at $2 million. At September 30, 2011, there were approximately $8.0 million of assets and $8.6 million of liabilities in the joint venture. There are no restrictions on the use of assets and liabilities associated with the joint venture. Also, creditors of the joint venture have no recourse against us other than the $2 million performance guarantee previously mentioned.