Higher E&P Expenditure, financial durability of the companies and customers are likely to drive growth of oilfields in Middle East Middle East Drilling Market is estimated to record revenues worth USD 88.2 billion by 2019. The surge in active rigs in the region, backed by shift in focus towards onshore drilling is projected to fuel market growth

1. Middle East Oilfields and Drilling Services
Market Report - 2020

2. Oil and Gas industry is highly volatile and cyclical market.
The growth of oilfield services industry was directly
proportional to the growth in oil and gas industry.The
global oilfield services industry was highly competitive
with a lion’s share occupied by the Big Four’s, namely,
Schlumberger, Halliburton, Baker Hughes and
Weatherford.These companies are typically non-
producers of oil and gas themselves; however, they
provide services, equipments and personnel to oil and
gas exploration and production companies.

3. The downfall in the commodity prices had a ripple effect
on global oil field services and drilling services market
as well as across the whole oil and gas value chain.
However, Middle East markets were largely unchanged
and came out to be the only vivid region globally where
the E&P companies have augmented their capital
spending in exploration, production and drilling
activities.
Middle Eastern countries across the region sought to
adopt enhanced oil recovery techniques to maximize
the value.

4. With the increased energy demand and increased
expenditure in E&P, the rental market for oilfields and
drilling equipments in Middle East witnessed a faster
growth.The oilfield equipment rental market of Middle
East valued to USD ~ million during 2014. Oilfields
require specialized equipments and machinery to
perform E&P and drilling activities.The increased capital
spending on oilfields and drilling services in Middle East
largely goes to the fact that the Middle Eastern oil
exporting countries did not cut their production levels
during the time when the commodity prices collapsed
so as to make the drilling operations unprofitable in the
US.

5. Significant capital expansions led by the major exploration
and production companies of Middle East has
augmented the demand for oilfield and drilling services.
Middle East had more than ~% share in the global
spending by major E&P giants.The global capital
expenditure in exploration and production has crossed
USD ~ billion in 2014 as compared to USD ~ billion in
2013.The expenditure in Middle East is expected to
increase with more than ~% annually in the years to
come as the increase E&P activities in the offshore
areas, new discoveries and orders of new offshore rigs
shall continue to drive the market.

6. E&P capital spending by Middle East in 2014 was recorded
at USD ~ million as compared to USD ~ million during
2013. More than ~% of the market share has been
occupied by the international oilfield services and
drilling companies in Middle East.The indigenous players
in the region do not have the expertise to provide
technologically reliable and advanced solutions to the
E&P companies.

7. The OFS companies provide a broad range of products
and services ranging from seismic surveys to deep and
ultra deep water drilling. Broadly, the OFS services can
be divided into five stages which are reservoir/seismic
surveys, exploration & production drilling, engineering,
fabrication and installations, operations and finally the
decommissioning of the well.
The oilfield services market in Middle East was exposed
to increased exploration and production activities in the
past five years 2009-2014.

8. The fundamental outlook of the oilfield services during
the last five years surged with the increased capital
spending in the market and a robust demand for energy.
The penetration of new simulation technologies and
increased operational efficiency in offshore exploration
in Middle East led the market to eventuate at USD ~
million in 2014 as compared to USD ~ million during
2013.

9. Despite of the short term uncertainty of crude oil prices,
the E&P spending did not reflect a significant impact of
the OFS market of the Middle East.The geopolitical
tensions and civil unrest in few regions of Middle East
brunt the OFS market largely in the regions such as Iran
and Egypt.
Saudi Arabia has been the largest country in terms of
oilfield services that has commanded revenues share
worth ~%. Rising domestic oil consumption in the
country has pushed Saudi Arabia state controlled
economy and has recognized it as the leader across
Middle East.

10. The region remained to be the most impressive area for
the international oilfield services companies for greater
returns since the prior five years. Over the years, the
rise in number of completed wells in the country has
discerned a decline in share from 29.1% during 2009.
The region remained to be the most impressive area for
the international oilfield services companies for greater
returns since the prior five years.

11. In the year 2014, Saudi Arabia has been the largest
country in terms of oilfield services that has
commanded revenues share worth 24%. Rising domestic
oil consumption in the country has pushed Saudi Arabia
state controlled economy and has recognized it as the
leader across Middle East.
Oman saw an upward trend in the market share,
increasing by ~% in 2014 from 2012. In between 2011
and 2012, Oman made huge investments towards
Enhanced Oil Recovery programs (EOR) which led to
increased OFS activities in Oman

12. Kuwait, Egypt and UAE have countered revenues share of
worth ~%, ~% and ~% respectively during 2014.These
countries in a consolidated manner have contributed
meager share relative to other Middle East countries,
owing to lower number of oil discoveries. However, the
growth prospects in these countries are quite
favourable and hence several oilfield service providers
have enhanced their expansion in these countries. More
than ~% of the oil and gas exploration and production
activities in Middle East are concentrated onshore.

13. As the mature fields in Middle East have increased, the
upstream companies have shifted their focus towards
offshore areas which has fueled the demand for OFS
services. In 2014, the share of onshore oil fields services
in the overall market was positioned at ~% which
accounted to approximately USD ~ billion as compared
to USD ~ billion in 2013.The Middle East ventured to
find new acreages and invested heavily in offshore
market.The oil producers strived for increased
production in the waters using advanced technologies
with the aim to surge down the operational costs which
created opportunities for OFS.

14. The market was led by Schlumberger which occupied a
colossal share of ~% from the total OFS market of
Middle East followed by Halliburton with a market share
of ~%. Baker Hughes and Weatherford stood at a share
of ~% and ~% respectively in terms of revenues.The
Middle East revenue of Schlumberger valued to
approximately USD ~million in 2014. Halliburton has
been the leader in pressure pumping market across
Middle East market. For Halliburton, the pressure
pumping segment accounted for USD ~ million which
led to a market share of ~% in Middle East.

15. The Middle East revenue of Halliburton from wireline
services was valued at USD ~ million in 2014 which
have been translated into revenues share of worth ~%
under wireline services. Baker Hughes has been the
largest player in completion services and equipment
market which has commanded share worth ~% during
2014.The presence of huge reserves in the region out
of which many are yet to be explored and exploited
presents an extensive market to the OFS companies in
Middle East as compared to any other geographical
locations across the globe.

16. The OFS industry in Middle East is likely to witness a
CAGR of ~% from 2015 to 2019 and shall value to
approximately USD ~million by the end of 2019.The
key market edges for an OFS company are projected to
be strong demand, higher E&P expenditure by the oil
and gas companies, soaring prices and financial durability
of the customer base.All the above conditions have
positive outlook in Middle East in the years to come
due to which market share of OFS firms is bound to
increase.The OFS industry was witnessed as a
competitive market in the past five years 2009-2014 and
is dominated by the Big Four oilfields service providers.

17. With the merger of Halliburton and Baker Hughes in
2015, the competition among the oilfield service
providers is likely to enlarge.The increase in demand for
energy drives the need for exploration activities and
investments.This increases the need for offshore
exploration and production activities, which further
leads to the demand of offshore drilling infrastructure
and associated services.The drilling services industry is
primarily a contractual industry which provides services
to the exploration and production companies.

18. The drilling services industry of Middle East demonstrated
strong fundamentals, a well-built growth and increased
activity as compared to any other region across the
globe during the past few years 2009-2014.The demand
for drilling services is budding up with growing drilling
activities in onshore as well as in offshore oil fields.
Some of the drilling services like directional drilling, land
drilling, offshore drilling, well service and work over are
becoming essence, with the amplified development of oil
& gas exploration and production activities

19.  Read Detail Report here –
https://www.kenresearch.com/energy-and-utilities/oil/middle-east-
oilfield-and-drilling-services-market-report/3260-103.html
 Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
ankur@kenresear.com
 Website : www.kenresearch.com

20. Thank you