US oil services firm NESR plans facility in Saudi’s King Salman Energy Park

US-headquartered oilfield services firm National Energy Services Reunited (NASR) on Wednesday signed a deal to lease land at the upcoming King Salman Energy Park (Spark) in Saudi Arabia.

The 50-square-kilometre Spark, inaugurated by the kingdom’s crown prince this week, is designed to boost Saudi’s Arabia’s status as an energy hub.

Read: Pictures: Saudi crown prince launches King Salman Energy Park

The first phase covers 12sqkm and is expected to cost SAR6bn ($1.59bn), with a completion deadline of 2021.

NESR said the land lease deal with zone developer and manager Saudi Aramco would enable it to launch a state of the art operating facility in the zone.

The company is believed to be the first to announce a commitment to establish operations in Spark.

“We are very honoured to be given the opportunity by Saudi Aramco to be part of this endeavour at its inception,” said NESR chairman and CEO Sherif Foda.

“This new facility shall be NESR’s flagship operating facility in the kingdom and will host all our product lines as well as that of our technical partners.”

NESR, which is based in Houston, Texas, began operations in May 2017 with he purpose of investing in the oilfield services space.

It acquired Middle East and North Africa firms Gulf Energy SAOC and National Petroleum Services in November last year and became an operating entity in June this year following approval by shareholders and the US Securities and Exchange Commission, according to its website.

Spark spans five areas in total with the first focussed on general manufacturing, electricity and equipment, liquids and chemicals, metal formation, and industrial services.

A dry port area will have a capacity of 8 million metric tonnes of cargo a year and there will also be a Saudi Aramco well-drilling and maintaining area, a training area with 10 centres to educate Saudi nationals and space dedicated to residential, commercial and recreational buildings.

The wider zone is forecast to contribute more than SAR22bn ($5.865bn) to the country’s GDP and create 100,000 direct and indirect jobs opportunities when it is completed in 2035.

Other gains are expected to come in the form of local supporting industries for Aramco’s operational and development needs.