Environmental Stewardship

NESR is committed to providing technological services that enhance our customers' performance by helping them reduce their environmental impact. In doing so, we rely on our core values of being socially and environmentally responsible. We actively integrate environmental, social, and governance (ESG) into our business processes, decisions, and strategic planning. We are dedicated to maintaining a sustainable and socially responsible company and strive to reduce our environmental footprint everywhere we operate.

We align our strategies and programs with the United Nations Sustainable Development Goals and strive to preserve our planet for future generations, while complying with all relevant rules and regulations. We firmly believe that our sustainability is closely linked to the viability of the economies, environments, and communities in which we live and work. We deploy innovation ingenuity in our approach. From redesigning solar-powered light towers in Saudi Arabia, to utilizing Reinforced Thermoplastic Pipe technology as a flaring solution in the Middle East, we are reducing air emissions and playing a vital role in the sustainable development of the countries in which we operate.

Climate Change

We recognize the effects of climate change on our planet and our business and align our approach with the United Nations Sustainable Development Goals. We are focused on reducing our environmental footprint and mitigating climate change risks to our business while continuing to help our customers provide the world access to affordable, efficient, and reliable energy. When assessing our risk exposure, we consider risks associated with climate change and their impact on our business in the near and long-term.

We manage our environmental impact by measuring and tracking our environmental performance data; by improving annually the measurement and management of our carbon footprint; by enhancing our energy and water efficiency; by managing our consumption of natural resources and our waste; by collaborating with our customers to engineer solutions which maximize the sustainable value of their assets and reduce the environmental impact of their operations; by using technologies that help our customers increase their operational performance while reducing or avoiding emissions; by working with suppliers to reduce the environmental impacts of their operations and the greenhouse gas (GHG) emissions of their products; by ensuring compliance with all applicable environmental laws and regulations in the places we operate; and reporting regularly on our progress toward effective sustainability and stewardship of our business and the advancement of these goals.

NESR helps customers reduce air emissions through the provision of clean energy services and technologies. We shifted from using diesel-powered light towers in our rigless sites in Saudi Arabia to using solar powered light towers. In addition, we replaced some of our diesel-powered generators in Saudi Arabia with solar-powered generators to further reduce our GHG emissions.

In 2019, we provided solutions for one of our key customers in the Middle East to reduce hydrocarbon flaring and CO ₂ emissions. By using Reinforced Thermoplastic Pipe technology, we enabled the safe transportation of several tons of hydrocarbons, which prevented their release into the air.

NESR’s process safety procedures incorporate practices that reduce negative environmental impacts. Barriers as part of well integrity are crucial to reducing the risk of uncontrolled release of formation fluids. NESR has a portfolio of cementing technologies and logging tools for ensuring and evaluating well integrity. Zonal isolation is created and maintained in the wellbore through the cementing process. Cement supports and protects well casings and helps prevent fluids in one zone from mixing with fluids in another zone. The cement systems that help establish zonal isolation work in a variety of reservoir conditions and remain in place throughout the life of the well.

More recently in 2019, we started tracking our overall GHG emissions with an aim to reporting our overall emissions in our Environmental, Social and Governance Report in 2021.

Air Emissions

NESR strives to mitigate environmental impacts associated with GHG emissions through managing the carbon emissions of our own operations. All NESR locations with the potential for air emissions are establishing a documented air emission plan in order to minimize air emissions.

NESR is currently mapping out a plan to achieve net zero carbon emissions from our operations by 2050 and developing new solutions to enhance our commitments and increase the transparency of our GHG reporting. Our plans will be announced in 2021.

Energy Management

NESR aligns with and supports the United Nations Sustainable Development Goals of providing access to affordable, reliable, sustainable, and modern energy for all and taking urgent action to combat climate change and its impacts.

We continually improve our practices and invest in facility upgrades by using energy-efficient equipment, implementing current best practices, and increasing our use of alternative and clean energy. The focus of our short-term strategy is to raise the internal awareness of employees to conserve energy and resources through various monthly campaigns, training, and monthly performance reports.

Our medium-term strategy focuses on implementing an Energy Management Standard in our operational facilities that is aligned with the ISO 50001 standard for identifying significant energy sources and implementing measures to effectively reduce energy use.

Implementing responsible energy consumption practices across the business continues to be one of our environmental objectives in 2020. In 2019, we started tracking our total energy consumption from different sources with the goal of improving energy efficiency and increasing the percentage of energy we consume from renewable sources. To this end, we plan to install building management systems to monitor energy consumption at NESR’s Oilfield Research and Innovation Center (NORI) in Dhahran Techno Valley and conduct energy modelling to reduce energy consumption. NORI is being designed to comply with Leadership in Energy and Environmental Design (LEED) certification requirements and once completed, is projected to consume 20% less energy than comparable buildings in Saudi Arabia. We estimate that approximately 5% of the energy consumed at NORI will be generated from renewable energy sources.

The shift away from diesel-powered light towers and generators further increased the share of energy consumed from renewable sources in our operation.

Water Management

Water is one of the world’s most valuable resources and we operate in water stressed areas in the MENA region. We apply best practices and technological solutions to water management challenges to reduce the impact of our operations on water resources everywhere we operate.

NESR has partnered with produced water treatment company Gradient Energy Services (GES), that can treat produced water to desired specifications for use in the hydraulic fracturing operation, industrial use, and/or disposal. GES provides highest quality water treatment services through their patented technology-driven solutions, enabling beneficial reuse of produced water. GES has demonstrated extensive experience in delivering reliable results, while working for some of the largest oil and gas operators in the United States. Together, GES and NESR will provide their customers with specific and differentiated technical water treatment solutions, so they can achieve their production goals in an environmentally responsible manner.

NESR has developed salt-tolerant fracturing fluid system capable of formulating hydraulic fracturing fluids with produced water, and this formulation is also able to use brackish and sea water with minimal to no treatment required. This fluid system eliminates the need to source the fresh ground water. In addition, the use of produced water for hydraulic fracturing can reduce or eliminate the carbon footprint associated with the trucking/piping of produced water to disposal wells.

NESR operations are mainly conducted in water-stressed areas; therefore, in order to reduce our water consumption substantially, our goal is to recycle all water from the wash bays and the permanent man camps in our biggest operating locations by the end of 2023.

Waste Management

We are committed to reducing the environmental impact of our activities across the entire value chain. We continuously strive to improve our environmental performance in multiple ways, including responsible waste management.

To manage waste materials more efficiently, we reuse materials when possible, recycle both in our own operations and for our customers, and use innovative technologies to find new recovery methods. We continue to seek opportunities to reduce both our direct consumption of resources and the waste we generate. In addition, NESR audits waste service providers to ensure appropriate waste treatment and disposal practices are followed.

In 2019, we started tracking the total volume of hazardous and non-hazardous waste produced by our operations – a first step toward understanding the volume and nature of the waste we generate. In an effort to raise employee awareness about the importance of reducing consumption, reusing what can be reused, and ultimately reducing and recycling waste, we banned all plastic water bottles from our offices in 2019 and provided reusable, environmentally-friendly bottles and cups. In 2020, we started tracking the volume of waste we recycle, and where our waste ultimately ends up (incinerated, sent to landfills, sold as scrap, etc.) This will allow us to understand the full impact of the waste we generate on different ecosystems. Ultimately, we believe that the information we are collecting in 2020 will facilitate better waste management in the future.

Environmental Releases

Releases and the potential associated impact to the environment have our full attention. Each NESR site is equipped with appropriate emergency control and spill prevention plans.

As part of NESR’s process safety procedures, barriers as part of well integrity are crucial to reducing the risk of the uncontrolled release of formation fluids. NESR has a portfolio of cementing technologies and logging tools for ensuring and evaluating well integrity. Zonal isolation is created and maintained in the wellbore through the cementing process. Cement supports and protects well casings and helps prevent fluids in one zone from mixing with fluids in another zone. The cement systems help establish zonal isolation work in a variety of reservoir conditions and remain in place throughout the life of the well.

To prevent unplanned discharges, NESR tests the integrity of service equipment on a regular basis. Regularly scheduled inspections, evaluations, and testing of bulk storage containers by qualified personnel are critical parts of discharge prevention. Our inspection and testing programs involve an external visual inspection along with extensive testing and examination to evaluate container integrity. These inspections are site specific and they meet or exceed industry standards.

NESR has deployed an automatic fuel system in its fracturing operations which consists of a closed system that supplies diesel to the fracturing fleet. This system can fuel all the equipment in a large fleet simultaneously, eliminating spills, hazards for the fracturing crew, and overfill risk. In addition to the environmental impact, the automatic fuel system improves the efficiency of the fracturing operation and reduces nonproductive time.

NESR also establishes secondary containment as part of protection measures for primary storage.

Chemical Transparency

During the design and development phase of fracturing, all chemical additives are selected based on minimum environmental impact and regulatory acceptance in the operating companies and countries where we operate. In addition, these chemical formulations are designed to be safe for the individuals who are handling them, from the manufacturing plant to the final oilfield application. Our current fracturing fluids are developed by one of our US-based technology partners, and as such, these additives are publicly disclosed via FracFocus when deployed in the US market by our partner.

Biodiversity

NESR strives to identify, manage, protect biodiversity (including diversity of ecosystems) and restore the lands impacted by our activities. Under our practices and procedures, we study the ecosystems before conducting operations, plan operations to minimize significant impact on lands, water, and its biodiversity, monitor the effect of current operations, and facilitate the restoration of land areas impacted by NESR’s activities.

We are committed to protecting biodiversity through:

• Locating, designing, and managing our facilities and operations to minimize adverse impact on flora and fauna, ecosystems, and conservation areas;
• Minimizing impact on biodiversity by conducting risk assessments upon acquiring new properties;
• Avoiding environmentally sensitive areas and reducing the need for land clearance as far as reasonably practical (especially around areas bordering deserts);
• Minimizing environmental impact and disturbance for all operations;
• Restoring land impacted by NESR activities where possible;
• Increasing awareness of the importance of biodiversity and promoting best practices of protecting and conserving biodiversity among our employees and contractors.

Environmental Compliance

NESR’s operations are conducted in compliance with industry standard certification programs, including those for quality management (ISO 9001), environmental management (ISO 14001), and health and safety management (ISO 45001 or OHSAS 18001). The NESR integrated HSE management system is aligned with ISO 9001/14001/45001.

We communicate our HSE philosophy to all employees, customers, contractors, and third parties associated with our business, and each NESR organization is required to provide evidence of conformance to the relevant system.  

Most of our operating countries are ISO 14001 certified by external certification bodies. In addition, those entities frequently hold multiple other certifications, such as ISO 9001/45001, OSHAS 18001, and API Q1 and Q2. No environmental violations have been recorded across NESR’s operations in 2019 and throughout the first half of 2020.

Environmental Achievements

Our environmental achievements this year are broad ranging. As a company, NESR has:

• Been selected by Aramco to participate in the 2019 Southern Area Oil Operations (SAOO) Environmental Campaign;
• Participated in an environmental campaign in Saudi Arabia to spread awareness on best environmental practices among school children;
• Been recognized by Saudi Aramco’s Southern Area Well Completion Operations Department (SAWCOD) for its outstanding contributions towards the accomplishment of environmental initiatives in 2019;
• Installed energy-efficient lighting, heating, and cooling systems;
• Prioritized technological developments aimed at minimizing CO ₂ emissions;
• Replaced diesel-powered light towers in rigless sites in Saudi Arabia with solar power light towers to reduce noise pollution, fuel consumption and CO ₂ emissions;
• Banned plastic water bottles in NESR offices to reduce waste;
• Reduced 6700 m ³ of fresh water per year in Oman operations by changing the cement slurry formula;
• Educated employees about greener operational alternatives and practices and encouraged them to adopt initiatives that support the achievement of our annual targets;
• Advanced the operational processes in our facilities by taking significant steps to reduce scrap and the use of harmful chemicals;
• Worked closely with community and nonprofit organizations to develop initiatives to apply technology, expertise, and volunteerism toward solving pressing environmental issues;
• Conducted assessments of business partners, suppliers, and contractors to uphold equal social and environmental standards, and defined next steps to improve worker-management, communication and working conditions.