The
upstream companies operating in Middle East sought jackups rigs with more
specifications so as to drill more efficiently and optimize the costs of
operations.
Rigs with enhance technical capability and better
safety standards were demanded by the operators so as to drill at more depth
and in challenging environments. Deterioration in the production levels from
the existing fields and quest to explore new sources led to demand of high
specialization rigs in the market. Drilling rig manufacturers like Lamprell
received various orders for building up of new high specification jackups.
Reduced levels of production from the existing fields, day rates of the jackups
and other factors contributed to build up an environment suitable for the drilling
contractors to operate at good profit margins. Increased demand of rig
specification jackups with the drilling capability of more than 350 feet of
water is required. Saudi Aramco and other major NOCs of Middle East planned
several deepwater drilling projects to keep up with the production levels of
future and to keep up with the crude oil supply in case of disruptions in the
market.
Middle East possesses a vast potential of offshore
discoveries to be made of large hydrocarbon reserves. The production in Middle
East from large onshore and shallow water reserves started to decline which led
to enhance the offshore deepwater and ultra deepwater production defined by
drilling at least 1,000 ft below the sea level. The global capital expenditure
in deep water E&P activity was USD 41.6 billion in 2014 and after Asia,
Middle East is expected to see the fastest growth in deep water exploration and
production spending. Drilling and completion followed by the subsea equipments
shall form the major part of the Deep Water E&P segment. With increased
E&P spending in the deep water and ultra deep water, OFS providers as well
as the drilling equipment providers are anticipated to face challenges in terms
of designing, deploying and operating related faculties and platforms in safe
and profitable manner. An urgent need of ultra deep water rigs and facilities
will enhance the OFS and drilling services market. Various seismic bids are
already under review in several countries in Middle East with large offshore
potential. Several contracts have been awarded for deep water and ultra
deepwater exploration in Middle East. The deepwater and ultra deep water market
requires continues supply of better technology and infrastructure which
provides a great opportunity for the OFS providers and drilling equipments
providers to enhance their productivity.
According to an
industry veteran, “The drilling services industry will be dominated by the
drilling rigs especially the jackups followed by other drilling tools and
products. The crude oil slump has definitely impacted the demand of the oil and
gas drilling services. However the condition is likely to improve in the years
to come as the price of the commodity shall be stabilized.”
The Research Analyst, at Ken Research
recommends that the players operating into the drilling and oilfield services
have to enhance their E&P expenditure.
Moreover, as per the scenario, most of the wells in the Middle East are
drilled onshore. However, as the companies are projected to venture into the
offshore markets, the offshore applications of these techniques are likely to
witness an increase especially in the regions like UAE, Saudi Arabia and Oman
where the onshore drilling market share is anticipated to deteriorate.
The report titled “Middle East
Oilfields and Drilling Services Market Outlook to 2019” provides detailed overview on
the oilfield and drilling services market and will help oilfield service companies
and drilling service providers which help in the extraction of oil through
offshore and onshore drilling operations. Moreover, the report will be helpful
for the government to assess the potential of Middle East region, energy and
oil companies and other stakeholders to align their market centric strategies
according to ongoing and expected trends in the future.
Related Reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
