Cairn Awards NESR Integrated Production Services Contract in India

Rhea-AI Summary

National Energy Services Reunited Corp. (NASDAQ:NESR, NESRW) announced the awarding of an integrated Production Services contract by Cairn Oil & Gas in India, effective Q3 2022. The contract encompasses various services, including Coiled Tubing and Hydraulic Fracturing, aimed at enhancing Cairn's energy supply across key regions in Rajasthan. This partnership will not only foster significant investment but also aims to create in-country value, aligning with NESR's localization strategy. CEO Sherif Foda emphasized the contract's role in extending NESR's operational footprint in India and investing in sustainable energy technologies.

Positive

• Award of integrated Production Services contract from Cairn Oil & Gas enhances NESR's operational footprint in India.
• Diverse service portfolio including Hydraulic Fracturing and Well Testing illustrates NESR's integrated service capabilities.
• Contract supports local investment and job creation, aligned with NESR's localization strategy.
• Focus on sustainable energy technologies and decarbonization to support India's energy growth.

Negative

• None.

HOUSTON, TX / ACCESSWIRE / April 12, 2022 / National Energy Services Reunited Corp. ("NESR" or "the Company") (NASDAQ:NESR)(NASDAQ:NESRW), an international, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") region, has announced that the company has been awarded an integrated Production Services contract from Cairn Oil & Gas ("Cairn") in India. Commencing by 3Q22, the contract scope spans Coiled Tubing, High-Rate Pumping, Wireline, TCP, Slickline, Thru-Tubing Services, Well Testing, Wellhead Maintenance, Heating Services, Completion Fluids & Equipment, Hydraulic Fracturing and Stimulation Chemicals, which underscores NESR's augmented integrated service delivery capabilities across a broad Production Services portfolio. The project is focal to Cairn's energy supply growth across the Rajasthan Assets Mangla, Bhagyam, Aishwarya, Barmer Hill & Satellite fields. Furthermore, the contract will underpin significant investment and in-country value ("ICV") creation in India, as NESR aims to bolster the domestic energy services industry while delivering on this broad service scope.

NESR CEO & Chairman Sherif Foda commented, "Anchor contract awards like this one from our esteemed partners at Cairn Oil & Gas are crucial to our continued investment in growth beyond our core GCC footprint. With this significant integrated Production Services award, NESR has achieved critical scale in India, with the multi-year growth visibility to be able to invest in local people, equipment, and next-generation upstream technologies, including key decarbonization technologies that will support sustainable energy expansion in the country. NESR understands the utmost importance of ICV creation and is uniquely positioned to invest domestically aligned with the company's localization strategy."

Mr. Foda continued, "I want to express my sincere gratitude to the Cairn leadership team, for their trust in NESR and their vision in supporting our National Champion growth strategy in India for years to come. We look forward to building upon our budding partnership with Cairn, and especially in exploring leading-edge sustainability technologies and processes to lower the carbon intensity of Cairn's ambitious domestic energy growth."

Commending the partnership, Prachur Sah, Deputy CEO, Cairn Oil & Gas, said, "At Cairn, we are firmly set on our target of doubling capacities and contributing 50% to India's domestic production. We are delighted to commence this new partnership with NESR. This partnership is another firm step in our goal of augmenting production in the country. NESR is an industry leader in providing energy technology services and will help us further our commitment to fulfilling India's energy security needs. Technology intervention in our most prolific fields in Rajasthan will help fully actualise their underlying potential. We look forward to our partnership with NESR to enhance production from our existing wells across Rajasthan block."

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 5,000 employees, representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, statements regarding the potential scope and timing of the financial restatement, plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: the amount, scope and timing of any financial restatement that may be required, information that may be discovered in the course of the Company's completion of the reconciliations of its financial results and related analysis; the ability to recognize the anticipated benefits of the Company's recent business combination transaction, which may be affected by, among other things, the price of oil, natural gas, natural gas liquids, competition, the Company's ability to integrate the businesses acquired and the ability of the combined business to grow and manage growth profitably; integration costs related to the Company's recent business combination; estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, political disturbances, war, terrorist acts, international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").

You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

For inquiries regarding NESR, please contact:

Blake Gendron - VP Investor Relations & Business Development
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

About Cairn Oil & Gas

Cairn Oil & Gas, Vedanta Ltd., is the largest private oil and gas exploration and production company in India, accounting for more than a quarter of India's domestic crude oil production. It has a world-class resource base, with a current interest in 58 blocks in India, including the 41 blocks under the Open Acreage Licensing Policy (OALP) Round I auction, five blocks each under Round II and Round III, and two awarded under the Discovered Small Fields (DSF) Round-II. In 2004, Cairn made the largest onshore discovery in more than two decades in India at Mangala, Rajasthan. In its operations of 20 years, Cairn has opened four frontier basins with numerous discoveries, 38 in Rajasthan alone. Cairn Oil & Gas has recently reiterated that it is a separate entity with no connection to the erstwhile Cairn Energy PLC, the Scottish oil and gas exploration company which has now been rebranded Capricorn Energy PLC. The brand name ‘Cairn' is now exclusively owned by Vedanta Limited, and all others will discontinue the use of the brand name ‘Cairn'.

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world's leading Oil & Gas and Metals companies with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa and Namibia. For two decades, Vedanta has been contributing significantly to nation-building. Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and the environment. Vedanta has put in place a comprehensive framework to be the ESG leader in the natural resources sector. Vedanta is committed to reducing carbon emissions to zero by 2050 or sooner and has pledged $5 billion over the next 10 years to accelerate the transition to net-zero operations. Giving back is in the DNA of Vedanta, which is focused on enhancing the lives of local communities. The company's flagship social impact program, Nand Ghars, has been set up as model anganwadis focused on eradicating child malnutrition, providing education, healthcare, and empowering women with skill development. Under the aegis of the Anil Agarwal Foundation, the umbrella entity for Vedanta's social initiatives, the Vedanta group has pledged Rs 5000 crore over the next five years on social impact programmes with a thrust on nutrition, women & child development, healthcare, animal welfare, and grass-root level sports. Vedanta and the group companies company have been featured in Dow Jones Sustainability Index 2020, and was conferred Frost & Sullivan Sustainability Awards 2020, CII Environmental Best Practices Award 2020, CSR Health Impact Award 2020, CII National Award 2020 for Excellence in Water Management, CII Digital Transformation Award 2020, ICSI National Award 2020 for excellence in Corporate Governance, People First HR Excellence Award 2020, ‘Company with Great Managers 2020' by People Business and certified as a Great Place to Work 2021. Vedanta's flagship Nand Ghar Project was identified as the best CSR project by the Government of Rajasthan. Vedanta Limited is listed on the Bombay Stock Exchange and the National Stock Exchange.

For more information, please visit cairnindia.com

SOURCE: National Energy Services Reunited Corp

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FAQ

What contract was awarded to NESR by Cairn Oil & Gas?

NESR was awarded an integrated Production Services contract by Cairn Oil & Gas in India.

When does the NESR contract with Cairn Oil & Gas commence?

The contract commences in the third quarter of 2022.

What services does NESR provide under the Cairn contract?

NESR will provide services including Coiled Tubing, Hydraulic Fracturing, Well Testing, and more.

How does the NESR contract impact local investment in India?

The contract aims to create significant in-country value and bolster local investment in the energy services industry.

What is the significance of NESR's partnership with Cairn Oil & Gas?

The partnership is crucial for NESR's growth strategy and enhances its scale and capabilities in the Indian market.