National Energy Services Reunited Corp. (NESR): PESTLE Analysis [Nov-2025 Updated]

You're trying to gauge the true risk and opportunity in National Energy Services Reunited Corp. (NESR), and honestly, it's not just about the Brent crude price averaging around $65 per barrel. The real story is political: NESR's future is defintely locked into the national development mandates of its major Middle East and North Africa (MENA) customers, not just market cycles. They are betting big on this, with strategic capital expenditures (CapEx) for 2025 projected between $140 million and $150 million to secure contracts in key unconventional gas projects like Saudi Arabia's Jafurah. This PESTLE analysis cuts through the noise to show you exactly how political alignment, a strong commitment to local content (Sociological), and proprietary technology like the Roya rotary steerable platform are the core drivers, not just the economic headwinds.

National Energy Services Reunited Corp. (NESR) - PESTLE Analysis: Political factors

You're operating in the Middle East and North Africa (MENA) oilfield services market, so political factors aren't just a risk; they are the primary driver of contract flow and revenue visibility. The political landscape in 2025 confirms a clear mandate: success for National Energy Services Reunited Corp. (NESR) is inseparable from its strategic alignment with the long-term economic visions of its key host nations.

Honestly, your business model is a direct function of government policy. The most significant political opportunity is the multi-billion-dollar contract NESR secured from Saudi Aramco in October 2025 for completion services in the Jafurah unconventional gas field. This deal is explicitly tied to Saudi Arabia's national economic blueprint, Vision 2030, which aims to diversify energy sources and boost domestic gas production. This alignment is the ultimate political risk mitigation.

Alignment with National Oil Company (NOC) visions is crucial for contract awards.

Winning large, multi-year contracts requires more than just competitive pricing; it demands a demonstrated commitment to the NOC's long-term strategic goals, often called 'In-Country Value' (ICV) programs. NESR's role in the Jafurah project solidifies its position as a cornerstone partner supporting a national energy transition, moving beyond just oil to unconventional gas. This is a powerful, defintely political, competitive advantage.

The NOCs are pushing for higher output and efficiency. For example, in Q1 2025, NESR's year-over-year revenue growth was specifically attributed to increased activity in key markets like Kuwait and Iraq. These NOC-driven capital expenditure (CapEx) plans are the lifeblood of your operation.

2025 Key Financial/Operational Metric	Value (as of Q3 2025)	Political Significance
Trailing Twelve-Month (TTM) Revenue	$1.31 Billion USD	Scale of operations tied directly to NOC spending mandates.
Q3 2025 Revenue	$295.3 Million	Reflects short-term fluctuations, including contract transitions in Saudi Arabia.
Major Contract Award (Oct 2025)	Multi-Billion Dollar (Jafurah)	Direct alignment with Saudi Vision 2030-a national political priority.

Geopolitical stability in core MENA markets like Kuwait, Qatar, and Iraq drives activity.

Regional stability is the baseline for all capital investment, and while the Gulf Cooperation Council (GCC) states like Kuwait and Qatar generally offer a stable operating environment, the broader neighborhood remains volatile. Any escalation between major regional players-like the US and Iran-would immediately impact oil prices and, critically, maritime security in the Persian Gulf, where much of the region's oil flows.

In contrast, Iraq presents a higher-risk, higher-reward scenario. While NESR saw activity growth there in Q1 2025, the security risks are real. In June 2025, for instance, the US was reportedly preparing to evacuate its Iraqi Embassy due to increased security risks, demonstrating the constant threat of operational disruption.

• Qatar: Strategic stability is anchored by its status as a major LNG powerhouse and hosting the largest U.S. military base in the Middle East.
• Kuwait: Actively participates in OPEC+ production policy, targeting higher output in 2025, signaling stable, long-term NOC investment.
• Iraq: Increased oil production (up by 170,000 bpd over the past year) creates opportunity, but internal security concerns remain a constant threat to project timelines.

The company benefits from its 'National Champion' status in the region.

NESR has successfully cultivated a 'National Champion' image, which is a powerful political shield against foreign competition. This status means the company is seen not just as a contractor but as a strategic partner committed to local job creation, technology transfer, and national energy independence.

The CEO's statement calling the Jafurah award a 'cornerstone achievement' that allows the company to 'give back to the Saudi energy' sector perfectly frames this nationalistic narrative. This political goodwill translates directly into preference in tender awards and long-term contract visibility, which is essential for planning CapEx, which is projected to remain between $140 million and $150 million for the full year 2025.

US government's shifting trade and sanctions policies could indirectly affect regional stability.

The shifting US policy landscape in 2025, particularly the renewed use of tariffs and sanctions, creates an indirect but material political risk. While GCC partners like Kuwait and Qatar were spared high reciprocal tariffs on non-energy products (receiving a minimal 10% threshold), the broader US policy impacts global oil demand.

Here's the quick math: US tariffs on Asian economies slow down global growth, which reduces Asia's appetite for MENA oil. Lower global demand puts downward pressure on oil prices, which could force NOCs to cut their CapEx budgets, slowing down NESR's activity. Still, US sanctions on competitors like Russian oil majors (e.g., Rosneft and Lukoil, sanctioned in October 2025) could tighten the global crude market, potentially increasing demand for non-sanctioned MENA crude and supporting prices.

National Energy Services Reunited Corp. (NESR) - PESTLE Analysis: Economic factors

Q3 2025 Revenue was $295.3 Million, Showing a Sequential Decline Due to Contract Transitions

You're looking at National Energy Services Reunited Corp.'s (NESR) recent performance, and the third quarter of 2025 presents a mixed picture. The headline number is a revenue of $295.3 million for the quarter ended September 30, 2025. That's a sequential drop of 9.8% from Q2 2025 and a year-over-year decline of 12.2%. Honestly, that kind of dip in sales is always a concern for investors, but the context here is key.

The decline wasn't a demand problem; it was primarily an execution challenge tied to contract transitions in Saudi Arabia. Still, the company maintained strong cost discipline, which helped keep the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin steady at 21.7%, yielding an Adjusted EBITDA of $64.0 million. It's a good sign that operational management is tight even when revenue is lumpy. The net income for the quarter was $17.7 million.

Brent Crude Oil Prices Expected to Average Around $65 per Barrel in 2025-2026, Pressuring Government Budgets

The macro environment, especially the price of Brent crude oil, is the single biggest driver for NESR's primary clients: the national oil companies in the Middle East and North Africa (MENA). Multiple forecasts point to a softening price environment. The U.S. Energy Information Administration (EIA), in its November 2025 Short-Term Energy Outlook, projects the average Brent spot price to be $68.76 per barrel for the full year 2025. Looking ahead, the World Bank forecasts a drop to an average of $60 in 2026.

Lower oil prices mean less revenue for the region's oil-exporting governments, which in turn pressures their capital expenditure (CapEx) budgets for oilfield services. For a company like NESR, this means the competition for new contracts intensifies, and clients will defintely push for better pricing. The market is moving toward a glut, with global oil stocks expected to build significantly in late 2025 and throughout 2026.

Forecast Source (Date)	Brent Crude Oil Price (2025 Average)	Brent Crude Oil Price (2026 Average)
EIA (Nov 2025)	$68.76 per barrel	$54.92 per barrel
World Bank (Oct 2025)	$68.00 per barrel	$60.00 per barrel
J.P. Morgan (May 2025)	$66.00 per barrel	$58.00 per barrel

MENA Oil Exporters' Projected Growth of 2.3% in 2025 Hinges on Oil Output Rebound and Non-Oil Sector Strength

The overall economic health of NESR's core market, the MENA oil exporters, is fragile but shows signs of recovery. The International Monetary Fund (IMF) projects growth for MENA oil exporters at 2.3% in 2025. This growth is not uniform; it's heavily reliant on two factors: the gradual unwinding of OPEC+ production cuts and the strength of non-oil sector diversification efforts.

For the Gulf Cooperation Council (GCC) countries-which are NESR's primary clients-the outlook is better, with the World Bank forecasting 3.2% growth in 2025, driven by robust non-oil sector expansion. Saudi Arabia, a critical market, is expected to see its GDP growth upgraded to 4% in 2025, largely due to a faster-than-expected rebound in oil output. This divergence is important, so you need to watch where NESR's revenue is sourced.

The key economic dynamics for the region are:

• Oil Output Rebound: A partial easing of OPEC+ cuts is expected to boost oil production volumes in 2025.
• Non-Oil Sector Strength: Diversification efforts, like Saudi Arabia's Vision 2030, continue to drive investment in non-hydrocarbon sectors.
• Fiscal Pressure: Lower oil prices are expected to reduce fiscal and external buffers for all oil exporters.

This means that while the overall economic engine is sputtering a bit, the specific oil and gas CapEx budgets in the GCC remain relatively resilient due to long-term strategic plans.

Management Forecasts 2025 Full-Year Revenues to be in Line with 2024, Expecting a Robust Q4

Despite the Q3 sequential decline, management remains confident in the full-year outlook. The guidance for 2025 full-year revenues is to be in line with 2024 levels. This expectation hinges entirely on a robust fourth quarter, driven by the start-up of new, large contracts, including the transformational Jafurah tender award.

Here's the quick math: if 2025 revenue is in line with 2024, the full-year revenue is estimated to be around $1.3 billion. The real opportunity is in the forward-looking guidance: management anticipates reaching a revenue run rate of approximately $2 billion by the end of 2026. This significant jump is a direct result of securing major contracts that will ramp up activity through Q4 2025 and into 2026. Capital expenditures (CapEx) for 2025 are projected to be between $140 million and $150 million, reflecting the strategic investment needed to execute these new tenders.

National Energy Services Reunited Corp. (NESR) - PESTLE Analysis: Social factors

You're looking at National Energy Services Reunited Corp. (NESR), and the social component in the Middle East and North Africa (MENA) is more than just a compliance checkbox; it's a core business mandate tied directly to winning major National Oil Company (NOC) contracts. The direct takeaway is that NESR's deep commitment to local workforce and supply chain development is its most significant social asset, but this long-term strategy creates a clear tension with shareholders demanding immediate cash returns.

Strong commitment to local content and workforce nationalization (In-Kingdom Total Value Add, or IKTVA)

NESR has strategically positioned itself as a national champion, making its dedication to In-Country Value (ICV) directives a competitive advantage. This is defintely a winning strategy, as NOCs like Aramco prioritize suppliers who align with national economic transformation plans, such as Saudi Vision 2030. Specifically, the In-Kingdom Total Value Add (IKTVA) program aims to localize 70% of Aramco's procurement spend, and as of 2024, the local content contribution stood at 67%.

NESR actively exceeds these targets by focusing on hiring local nationals and developing infrastructure. For example, the IKTVA program has enabled 350 new local manufacturing facilities in Saudi Arabia since its launch. NESR is furthering this commitment by building an advanced facility at King Salman Energy Park (SPARK), which directly supports the goal of creating high-value jobs and a sustainable local supply chain.

The company employs over 6,500 people across the MENA region, which is a key social metric for NOC customers

The scale of NESR's local employment is a critical social metric that resonates deeply with its government-owned customers. As of 2024, the company employed over 6,500 people across the MENA region, representing a near-tripling of its workforce since its inception. This is a massive number that shows commitment.

The company operates in over 16 countries and its workforce includes people from more than 60 nationalities. This diverse, yet localized, talent pool is a direct result of its strategy to train, retain, and promote talent from within the regions where it operates, which helps secure long-term contracts that often span multiple years.

Here's a quick look at the workforce and localization impact:

Metric	Value (as of 2024/2025)	Significance
Total MENA Workforce	Over 6,500 employees	Critical metric for NOC contract awards.
IKTVA Local Content Goal (Aramco)	70% procurement spend	NESR's strategic target for local value creation.
IKTVA Jobs Created (Total Program)	Estimated 200,000 direct & indirect jobs since 2015	Illustrates the macro-social impact NESR contributes to.
Workforce Growth	Nearly tripled since inception	Demonstrates aggressive local talent acquisition.

Focus on community empowerment and local supply chain development is a core business mandate

NESR's social responsibility extends beyond just hiring. The company views community empowerment as a way to create lasting social value, which in turn strengthens its license to operate. This is smart business because it mitigates operational risk and builds political capital.

The company's efforts are tangible, not just abstract:

• Run the NESR Oilfield Research & Innovation (NORI) Center in partnership with King Fahd University of Petroleum & Minerals.
• Focus on developing homegrown innovation and skills, helping to create a highly-skilled local intellectual capital.
• Engage in partnerships with local Non-Governmental Organizations (NGOs) and Non-Profit Organizations (NPOs) to support community development.

This focus on local supply chain development is a major differentiator in the oilfield services sector, helping them secure multi-year, multi-billion dollar contracts like the recent Jafurah award in Saudi Arabia.

Pressure from shareholders for immediate results and dividends can conflict with long-term local investment

Here's the rub for the seasoned analyst: the social mandate for long-term ICV investment directly clashes with the financial market's short-term focus. NESR faces pressure from shareholders for immediate results, cash, and dividends, a tension that conflicts with the capital-intensive nature of its long-term investment strategy in local content.

Management is currently in a phase of strategic investment growth to execute on major contract wins, like the Jafurah project, which requires significant capital expenditures to build out local capacity and organizational strength. This means cash flow is being prioritized for growth CapEx (Capital Expenditure) over immediate shareholder distributions like dividends. The free cash flow for the nine months ended September 30, 2025, was $25.0 million, which is being reinvested to support future growth and meet ICV commitments.

The company's plan is clear: stabilize these new initiatives by mid-2026, and then reevaluate the capital allocation program to maximize shareholder value. Until then, investors must accept that the social and strategic investments-which drove a 56.7% one-year total shareholder return as of November 2025-are the priority, even if it means a lower immediate dividend yield. The CEO even declined his Restricted Stock Unit award in 2024 to redistribute shares to team members, showing a management commitment to internal social equity over personal financial gain.

National Energy Services Reunited Corp. (NESR) - PESTLE Analysis: Technological factors

You're looking at NESR's technology stack and wondering if it's truly a competitive differentiator, or just marketing jargon. The short answer is: their recent, high-value contract wins confirm that their proprietary technology is a critical factor, especially in high-spec directional drilling and unconventional gas. This is a technology-driven company now.

Investment in proprietary directional drilling technology, like the Roya rotary steerable platform

NESR has made a strategic pivot to high-end drilling with its proprietary Roya platform, a suite of advanced directional drilling tools. This isn't just an incremental update; it's a full-stack solution designed to compete directly with global majors in the Middle East and North Africa (MENA) region. The successful deployment of the Roya platform in Kuwait in late 2024, following extensive testing in the Americas where it drilled over 70,000 feet, validates its performance.

The financial impact is clear: the company secured multiple directional drilling awards in Saudi Arabia, Oman, and Kuwait with a total value exceeding $200 million across multi-year contracts (3 to 5 years). This platform is expected to generate up to $200 million of incremental run-rate revenue over the contract life, which is a significant boost to their high-margin service portfolio. That's a strong signal that their investment is paying off immediately.

The Roya platform is an integrated system comprising three key tools:

• RoyaSteer® Rotary Steerable System (RSS): For high-precision wellbore placement.
• RoyaStream® Measurement-While-Drilling (MWD): Provides high-speed telemetry and downhole communications.
• RoyaSeek® Logging-While-Drilling (LWD): Offers advanced formation evaluation with tools like Azimuthal Gamma Ray and Density.

Integration of Artificial Intelligence (AI) into operations to enhance efficiency and decision-making

While NESR doesn't publish a line-item for AI investment, its core drilling and completion services are increasingly driven by digitalization and data analytics, which is where AI starts. The Roya drilling platform itself integrates advanced automation and data analytics features for real-time monitoring and optimization of drilling operations. This translates to less downtime and more efficient drilling. Honestly, in the energy sector today, if you aren't using data to optimize, you're losing money.

In the context of their massive contracts, like Jafurah, their CEO has highlighted that the operational efficiency achieved-which rivals even the best of US shale operations-is supported by an agile adoption of new technologies and processes. This includes leveraging the customer's data-driven approach, which combines analytics and digitalization to optimize field development. The industry is seeing AI agents enabling real-time optimization of drilling and supply chains, and NESR's digital capabilities are how they capture that efficiency.

Dedicated R&D and operational readiness for unconventional gas projects, such as the Jafurah integrated frac contract

The ultimate proof of NESR's technological readiness for unconventional gas is the multi-billion dollar, five-year contract secured from Saudi Aramco in late 2025. This contract is for completion services in the flagship Jafurah unconventional gas project, a central component of Saudi Arabia's Vision 2030.

The award is a direct result of their prior R&D and operational success. NESR has been operating in Jafurah since 2019, deploying large-scale hydraulic fracturing (frac) capabilities that have achieved continuous record-setting performance comparable to leading US shale projects. The new contract requires a significant mobilization of completion services, including hydraulic fracturing, completion, and drilling support, all of which demand highly specialized and reliable technology.

Here's the quick math on the strategic importance of this technology:

Project	Contract Value (Approx.)	Contract Term	Technological Focus
Jafurah Integrated Frac Contract	Multi-billion dollar	Five years (Starting late 2025)	Integrated Frac Capabilities, Data-Driven Optimization, Large-Scale Mobilization
Roya Directional Drilling Awards	Exceeding $200 million	Three to five years	Rotary Steerable System (RSS), MWD, LWD

Utilizing an open technology platform to bring global solutions to MENA environmental challenges

NESR's approach to environmental technology is through an open technology platform, meaning they partner with global innovators to bring best-in-class solutions to the MENA region, rather than developing everything in-house. This is a smart, capital-efficient way to stay current.

This strategy is formalized in their NESR Environmental & Decarbonization Applications (NEDA) segment. NEDA is specifically focused on developing and commercializing decarbonization technologies aimed at lowering the environmental intensity of oil and gas production. A concrete example of this is the development of a closed-loop technology to recycle produced water for oilfield activity in Saudi Arabia. This directly addresses the critical regional challenge of water scarcity, where 15 of the top 25 water-stressed countries are in the MENA region. The NEDA segment positions NESR as a key partner in the region's broader sustainability and energy transition goals.

National Energy Services Reunited Corp. (NESR) - PESTLE Analysis: Legal factors

Compliance with stringent US Securities and Exchange Commission (SEC) financial reporting standards as a NASDAQ-listed company

You know that being a NASDAQ-listed company means you're playing by the most stringent rulebook in the world, and for National Energy Services Reunited Corp. (NESR), this has been a major focus. The legal factor here is the absolute requirement to adhere to the US Securities and Exchange Commission (SEC) financial reporting standards, specifically the Exchange Act of 1934. NESR is a foreign issuer, but its listing subjects it to the same intense scrutiny as any major US firm.

The company faced significant legal and compliance challenges stemming from pervasive, systemic deficiencies in its accounting and controls dating back to 2018, which led to a multi-year restatement of its financial statements for 2018, 2019, and 2020. This resulted in a settlement with the SEC, where NESR agreed to pay a civil penalty of $400,000. This kind of financial hit is minor in the grand scheme, but the reputational cost is not.

Remediation of all previously identified material weaknesses in internal controls, formally disclosed to the SEC

The good news is that NESR has made a decisive move to clean up its house. As of the Q3 2025 Earnings Call on November 13, 2025, the company formally disclosed to the SEC that it has remediated all previously identified material weaknesses in its internal controls over financial reporting (ICFR) and disclosure controls and procedures (DCP). This is defintely a critical de-risking event.

The cost of this cleanup, while necessary, was tangible in the near-term financials. For the third quarter of 2025, the company reported an adjustment for certain charges and credits impacting Adjusted EBITDA totaling $6.9 million, which included costs tied to the remediation of these material weakness controls. Management expects these remediation costs to decline dramatically going forward, which should provide a tailwind to future earnings.

Here's a quick snapshot of the SEC compliance status as of late 2025:

Compliance Metric	Status (Q3 2025)	Financial Impact
NASDAQ Listing Compliance	Compliant	Maintains access to US capital markets
Material Weaknesses in ICFR/DCP	Fully Remedied	Remediation costs, part of a $6.9 million Q3 2025 adjustment, are expected to decline
SEC Civil Penalty (Settled)	Paid and Certified	$400,000 penalty paid

Adherence to complex and varied local labor laws and contracting regulations across 15+ countries

The real legal complexity for NESR lies in its global footprint. Operating as an international provider, primarily focused on the Middle East and North Africa (MENA) and Asia Pacific regions, means navigating the distinct legal frameworks of over 16 countries with a workforce of over 6,000 employees representing more than 60 nationalities. The major revenue drivers-Saudi Arabia, Oman, Kuwait, and the UAE-contribute 75-80% of total revenue, making their local regulations paramount.

Local labor laws in these key markets are constantly evolving, particularly in 2025, which directly impacts NESR's operational costs and human capital strategy. For instance, Saudi Arabia has passed legislation for major updates to its employment law, including changes to the probationary period and the terms for non-Saudi national contracts. Also, the implementation of new labor codes in the Asia Pacific region introduces new compliance burdens.

Key 2025 international labor law changes impacting NESR's compliance risk:

• India's New Labour Codes (Effective November 21, 2025): Mandate universal minimum wages and reduce gratuity eligibility to one year of continuous service, which will increase wage-related operating costs for large employers like NESR in that region.
• Saudi Arabia: Legislation updates non-Saudi national contracts, potentially affecting the cost and flexibility of the workforce that accounts for more than 50% of NESR's revenue.
• UAE (Dubai): Flexible summer working hours for the public sector, while not directly applying to NESR, set a precedent that influences private sector expectations and labor practices.
• Contracting Risk: The company must constantly adapt its contracts with National Oil Companies (NOCs) to align with evolving in-country value (ICV) requirements, which are often legally mandated to prioritize local content, employment, and supplier development.

Corporate governance principles are overseen by the Board, with quarterly ESG updates

NESR's corporate governance structure is a key legal safeguard, especially after its recent compliance issues. The Board of Directors oversees the corporate governance principles, which were formally adopted in new guidelines on February 24, 2025. The structure includes three independent standing committees: the Audit Committee, the Compensation Committee, and the Nominating and Governance Committee, ensuring adherence to Nasdaq listing rules and SEC requirements.

A significant part of the Board's oversight includes Environmental, Social, and Governance (ESG) factors. The Board requires that ESG updates are presented to them quarterly. This regular, formal review process ensures that ESG considerations-which are increasingly becoming legal and contractual requirements in NOC tenders-are factored into business decisions and risk management. This moves ESG from a soft initiative to a hard compliance factor.

National Energy Services Reunited Corp. (NESR) - PESTLE Analysis: Environmental factors

Dedicated NESR Environmental and Decarbonization Applications (NEDA) Segment

You can't talk about National Energy Services Reunited Corp. (NESR)'s environmental strategy without starting with the NESR Environmental and Decarbonization Applications (NEDA) segment. This isn't just a marketing initiative; it's a dedicated, commercialized business unit launched in February 2024 to drive their external environmental impact. NEDA is the operational arm for innovative, open-platform technologies, primarily targeting the Middle East and North Africa (MENA) region where water scarcity and emissions are acute business risks.

The core idea is simple: turn oilfield waste streams into circular economies. The segment's focus areas directly address the most pressing environmental challenges faced by national oil companies (NOCs) in the region. Honestly, this is how you make sustainability a core business driver, not just a compliance checkbox.

• Water & Mineral Recovery: Transforming produced water from a disposal cost into a resource.
• Flare Abatement & Emissions Detection: Capturing valuable gas and monitoring for methane leaks.
• Heat Capture & New Energies: Improving energy efficiency and exploring geothermal applications.

Focus on Zero Liquid Discharge (ZLD) Water Technology

Water management is defintely a critical environmental factor in the MENA region, and NESR's Zero Liquid Discharge (ZLD) technology is a clear opportunity. They've moved beyond simple water treatment to Zero Mineral & Liquid Discharge (ZMLD), which is about maximizing water recovery and minimizing waste. This approach is a strategic advantage, especially when securing long-term contracts with NOCs who prioritize water stewardship.

A key example is their partnership with Saudi Aramco, where they deployed major ZMLD pilots. Using their DyVaR desalination technology, they successfully treated hypersaline produced water, achieving a water recovery rate of around 80%. This process converts high Total Dissolved Solids (TDS) water into freshwater with an average of less than 100 ppm TDS, which is clean enough for industrial or agricultural reuse. They also commissioned a pioneering circular water treatment facility in Iraq in 2023, demonstrating real-world application.

Water Technology Metric	Value (2025 Data)	Significance
Water Recovery Rate (Pilot)	70%+ to 80%	Maximizes clean water reuse for industrial/agricultural purposes.
Energy Intensity (Pilot)	10kWh/bbl	Demonstrates a measurable, low-energy solution for desalination.
Treated Water Quality	Less than 100 mg/l TDS	Meets stringent standards for reusable freshwater.
Potential Capacity (DyVaR Plants)	25,000 to 100,000 bbl/d	The range of produced water converted to freshwater and killing fluids by new plants.

Goal to Achieve Net Zero Carbon Emissions from Operations by 2050

NESR has formally committed to achieving net zero carbon emissions from its operations by 2050. This aligns with the global push to limit warming to 1.5°C, but the real work is in the interim steps. They are currently mapping out a detailed plan, which is crucial for credibility. What gets measured gets done, so they've already linked corporate ESG performance to executive compensation since 2020.

For internal operations, they are reducing their Scope 1 and Scope 2 emissions. For instance, in 2023, they started electrifying key sites. The Habshan Basecamp in the UAE implemented a solar-diesel-hybrid (SDH) power system with approximately 104kWp of solar capacity. This specific project resulted in saving nearly 150 MT CO2e emissions by offsetting diesel consumption. Plus, they are starting to measure their Scope 3 emissions, which shows a commitment to understanding the full value chain footprint.

Advanced Projects Include Mineral Recovery Initiatives

The mineral recovery initiatives are where the circular economy concept truly pays off, transforming a liability (disposal cost) into an asset (potential revenue source). This is a smart move to diversify revenue streams beyond traditional oilfield services.

The ZMLD technology, as part of the NEDA segment, is designed to recover valuable minerals from the hypersaline brine left over after water extraction. For example, they demonstrated that the oversaturated brine, which has a TDS of over 350,000mg/l, can be used to formulate drilling fluids. Using this brine for drilling fluids achieves a 100% circular economy for that waste stream. Another advanced project is the 'Flare-to-Forest' concept, which aims to convert multiple oilfield waste products into valuable resources through a three-step process, though specific 2025 financial figures for this project are still emerging.

Next step: Operations should provide the Q4 2025 estimated cost savings from the ZLD deployment in Iraq to quantify the revenue-source potential.