Connecting capital markets globally to energy stakeholders locally

In an exclusive interview with ADIPEC News, Sherif Foda, Chairman of Board & CEO of NESR discusses the once-in-a-generation energy upcycle currently unfolding in MENA, underpinned by a heightened focus on sustainability and uniquely marked by the emergence of Voluntary Carbon Markets (VCMs) that are poised to connect industry stakeholders and global capital markets.

Why was it important for you to list on NASDAQ, having been one of the few companies from the region to do so?

Our philosophy at NESR since its creation was to connect local, international, institutional and retail investors and enable them to invest in the MENA region. This in itself is a unique offering since many US investors, for example, wanted to have access to Middle East activity, but cannot find a company solely linked to the MENA O&G sector that is also publicly listed on a major US exchange.

The creation of NESR as a national champion with deep knowledge of not only the business, but the various cultures in the region, is incredibly powerful to the outside world. I’m a strong believer in our people’s capabilities to make a difference and lead our region into a better, brighter future.

What is your outlook for the energy industry in the MENA region, and what are some of your main challenges and opportunities?

The outlook for upstream energy investment in MENA is stable, and we predict growth will continue until the end of the decade. Years of structural underinvestment in supply, combined with global energy security demand drivers, have created an environment in which MENA is already experiencing a significant, multi-year expansionary cycle. For NESR, there are exciting opportunities in traditional oilfield services, including landmark contract wins in the high-end directional drilling market, as well as decarbonisation technology through our NEDA segment.

What are some key technologies you are launching at ADIPEC? 

In February at the International Petroleum Technology Conference (IPTC) in Saudi, we launched ROYA, our platform of next-gen, advanced drilling technologies, which has since enabled us to successfully execute multiple jobs. The launch, considered an industry-wide breakthrough, is the first time a national company revealed and delivered advanced R&D, enabling the development and deployment of the foremost sophisticated drilling technologies.

NESR is grateful to our customers for their trust and confidence in our abilities, underscored by our recent directional drilling contract awards, as we continue to proudly commercialise various services during ADIPEC. 

How are you supporting your customers in their decarbonisation and sustainability objectives? 

NESR has executed several flagship projects through our NEDA segment, which stands for NESR Environmental & Decarbonisation Applications, but also translates into “call to action” in Arabic. In Saudi, we successfully implemented a circular economy water treatment solution to produce freshwater (<100ppm) from high salinity produced water, proving that the industry can be a net supplier of water resources to the region.

In Iraq, we deployed different water treatment technologies to produce workover fluid from brackish reservoir water, thereby shielding consumption of precious RO freshwater at the NESR brine plant. Additionally, at NESR, we continue to gain traction with pilot projects in methane detection, flare capture, and carbon capture and sequestration (CCS) across the MENA region. At the moment, we are working to scale these projects, together with our customers.