NESR Secures Over $100M in North Africa Contracts

NESR has secured over $100 million in production services contracts in North Africa, spanning 3-5 years and providing stable revenue through 2028-2030. The contracts involve core services such as coiled tubing, cementing, and hydraulic fracturing. NESR operates with 100% national crews in Algeria and Libya, enhancing local integration and talent development. This strategic development solidifies NESR's market leadership in the region and aligns with its broader regional strategy.

National Energy Services Reunited Corp. (NASDAQ:NESR) has secured multiple Production Services contracts in Algeria and Libya, with a combined value exceeding $100 million. The contracts, spanning three to five years, cover essential services including Coiled Tubing, Nitrogen & Pumping Services, Cementing, and Hydraulic Fracturing. This strategic development strengthens NESR's regional leadership in North Africa, where the company operates with 100% national crews.

The magnitude of these awards is particularly notable as they provide significant revenue visibility for the company's North African operations. The multi-year nature of these contracts offers valuable stability to NESR's revenue stream, extending through at least 2028-2030, depending on the specific contract terms. These contracts reflect growing energy sector activity in North Africa, with NESR's CEO highlighting "steady activity growth" across these key markets. The company's strategy of maintaining a strong local presence and investing "countercyclically" appears to be yielding results in securing long-term business.

Operating with 100% national crews likely provides both cost advantages and strengthens relationships with national oil companies in the region. These contracts reinforce NESR's position in what they identify as key "anchor countries" in their regional strategy, potentially providing a platform for future expansion in these markets. For context, NESR operates across 16 countries with approximately 6,000 employees.

NESR's CEO and Chairman Sherif Foda commented, "These awards not only enhance our existing leadership within our largest product lines but also provide the platform upon which innovation and technology development can thrive in both Algeria and Libya. The activity growth in both countries remains solid, with several strategic projects in both oil and gas, and these wins reflect the commitment we've made to maintain our strong local presence, empower local talent by operating 100% with national crews, and invest countercyclically in the coming years to be the reliable and trusted provider to our customers."

References:
[1] https://www.stocktitan.net/news/NESR/nesr-secures-multiple-awards-in-north-africa-exceeding-100-1o8m7auzonks.html
[2] https://finance.yahoo.com/news/national-energy-services-reunited-nesr-021304600.html