CNQ signs 5-year Distribution Agreement with NESR
22 November 2021
Clean TeQ Water is pleased to announce the signing of an exclusive distribution agreement with the National Energy Services Reunited Corp (NESR) to promote the Company’s unique water treatment and reuse solutions to Oil and Gas companies in the Middle East. NESR is one of the largest oilfield services providers in the MENA (Middle East and North Africa) and Asia Pacific regions and is listed on NASDAQ (NASDAQ: NESR). NESR has established a Water Conservation and Management business focused on improving water availability and reuse in the oil and gas sector. Clean TeQ Water’s suite of water technologies are targeted for such applications and provide NESR with competitive advantage in this market sector. NESR was founded in 2017 as one of the largest national oilfield services providers in the MENA and Asia Pacific regions and was the first national company from the MENA region to be listed on the NASDAQ. With over 5,000 employees representing more than 60 nationalities in over 16 countries.
The distribution agreement is in response to the increased level of interest shown by the industry following the contract (HIROX Water Recovery plant, August 2021) with NESR to design, procure, deliver, and install a HIROX (High Recovery Reverse Osmosis) plant to treat bore water used for enhanced oil recovery in the Middle East. The solution provided is expected to dramatically reduce the required water withdrawal, energy and chemicals use for producing a ton of treated water.
The agreement will be effective immediately, and as part of the distribution agreement Clean TeQ Water will work with NESR exclusively in the Oil and Gas sector across the Middle East and in selected other African and Asian countries (Sultanate of Oman. Kingdom of Saudi Arabia, Sultanate of Oman, Kingdom of Saudi Arabia, Algeria, Iraq (North & South), United Arab Emirates, Egypt, State of Qatar, State of Kuwait, Kingdom of Bahrain, Libya, Yemen & Sudan, Chad & India). The exclusivity will be for an initial period of five years provided minimum revenue objectives are met along the way. The Oil and Gas sector is expected to dramatically increase its investment in environmental solutions over the coming years to reduce its environmental footprint according to internal targets and to address concerns from shareholders.
”We are delighted to be working with NESR, a world leader in water conservation management businesses with an established track record of delivering exceptional service and deploying optimal technical solutions to solve the challenges of oil and gas customers. We consider this cooperation a substantial expansion of our ability to promote our technology in Middle-East.Willem VriesendorpChief Executive Officer
Besides the standard integrated equipment supply model used for the first contract, Clean TeQ Water and NESR have the intention to cooperate and co-invest in alternative delivery models including BOO (Build, Own, and Operate) where parties jointly invest in the building the plant and sell the treated water to the end-user under long term agreements. Clean TeQ Water is pursuing BOO as an attractive future alternative sales model that can generate attractive and stable multi-year returns.