National Energy Services Reunited Corp. Announces Multiple Contract Awards in Oman

Rhea-AI Summary

National Energy Services Reunited Corp. (NASDAQ:NESR, NASDAQ:NESRW) announced significant contract extensions and awards valued over $1 billion with Gulf Energy SAOC in Oman by Petroleum Development of Oman (PDO). The contracts cover Cementing, Coil Tubing, Stimulation, and more, extending up to nine years with a main term of five years. These awards reinforce NESR’s presence in Oman, facilitating growth and technology advancements while supporting local workforce development as part of its ESG strategy.

Positive

• Contract extensions and awards valued over $1 billion strengthen NESR's position in Oman.
• Long-term contracts (up to nine years) provide stability for future operational investments.
• Focus on local workforce development aligns with ESG strategies and enhances community contributions.

Negative

• None.

MUSCAT, OMAN / ACCESSWIRE / October 21, 2020 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR) (NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") and Asia Pacific regions, today reported multiple extensions and awards to Gulf Energy SAOC ("GES") in the Sultanate of Oman by Petroleum Development of Oman ("PDO") valued at over $1 billion. With these awards, NESR has cemented its position in Oman for the foreseeable future and has opened new growth avenues to expand its product lines over the next decade in the Sultanate of Oman and in the MENA region.

These contract extensions include Cementing, Coil Tubing and Stimulation, Fishing and Milling, and Downhole Tools contracts for a period up to nine years, including a main term of five years with two possible extensions of two years each, with contracts expiring between 2030 and 2032. In addition, a new contract for Directional Drilling and Turbine Drilling was also awarded for a term of up to six years.

Raoul Restucci, Managing Director, PDO, commented: "I am pleased to see local companies, such as Gulf Energy, come of age due to PDO's localization efforts and In-Country Value Strategy, which while delivering world class technology advances for the upstream sector also ensures creation of jobs, training and learning opportunities for Omanis and enhancements in the domestic supply chain and manufacturing. Companies such as Gulf Energy are leading the change in transforming the upstream sector in Oman as well as the region, and I wish them the best for the future."

Salman Al Maimani, PDO Wells Contract Manager, commented "PDO has always encouraged and supported local companies to take on ever larger work scopes and expects market leading delivery and technologies within a competitive framework. We also believe that to create a successful business we need to provide the local companies enough runway so that they can build a sustainable enterprise around a stable framework. Hence, we are very pleased to see the progress GES has made up to this point, and these contract extensions and awards are in line with our strategy to reward the best performers who show the potential to further contribute to PDO's In-Country Value objectives. I wish GES the best for the future and hope they continue to contribute to PDO's and Oman's success in the coming years."

Mr. Sultan Al-Ghafri, Gulf Energy Vice President commented: "We would like to thank the Ministry of Oil and Gas and PDO for their continued faith and confidence in our capabilities as well as the differentiated level of service which GES has delivered over the years. The last fifteen years have seen GES, a local Omani company, grow from a startup to one of the largest oilfield service providers in Oman and the region. These awards and extensions allow GES to further grow and contribute to the Oman E&P Industry and get to the next level. GES has invested heavily in both building manufacturing and operating facilities and these awards allow us to build on this base to bring cutting edge technologies for the benefit of our customers in Oman and train and deploy Omani Nationals as we have done in the past."

"We are very pleased to further consolidate our presence in the Sultanate of Oman, one of our key foundational countries and where NESR has longstanding history and deep roots. I am deeply thankful to the Ministry of Oil and Gas and PDO as these awards validate and recognize the alignment and understanding we have had with the larger goals of In-Country Value creation in Oman. Beyond the monetary value, which is significant for these awards, the almost decade-long scope provides the business with the stability that allows us to invest heavily in recruiting and training Omani engineers and field personnel. The Omani talent has provided support to all our operations across the globe, and with this award we are able to intensify our efforts to place more Omani internationally. This is NESR's ESG strategy in action, with direct bearing on the sustainability of our business as well as social contributions to the countries where we operate," said Sherif Foda, Chairman of the Board and CEO of NESR. Mr. Foda added, "Additionally, the new drilling scope gives us a very good platform to build on for the next phase of growth and increase the technology intensity in our portfolio, and we look forward to delivering top quality service to PDO and our other customers in Oman."

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 benefits resulting from the Company's recent business combination transaction, the 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 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:

Christopher Boone or Dhiraj Dudeja
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

SOURCE: National Energy Services Reunited Corp. via EQS Newswire

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FAQ

What are the recent contract awards for NESR in Oman?

NESR received contract extensions and awards valued over $1 billion from PDO, covering multiple services.

How long are the contract extensions for NESR in Oman?

The contracts are for a main term of five years with potential extensions totaling up to nine years.

What is the significance of the recent contracts for NESR's future?

These contracts solidify NESR's presence in Oman and open growth avenues for product lines in the region.

What services will NESR provide under the new contracts in Oman?

NESR will provide services including Cementing, Coil Tubing, Stimulation, and Directional Drilling.