Middle East & North Africa Oilfield Services – A $12.4 Billion Market by 2012
Increased investment
Announcing the launch of the study, Douglas-Westwood’s Managing Director, Andrew Reid, commented: “MENA accounts for two thirds of proven global oil reserves and is regarded as the world’s most influential oil province, eclipsing all other regions by some margin. Over the next five years, the region will see strong growth in hydrocarbon production as the world becomes increasingly reliant on oil supplies within the region.”
The MENA Oilfield Services Report finds that, in order to attain forecast production levels, drilling activity, both on and offshore must grow at a dramatic rate thus increasing demand for rigs and associated drilling services. In addition, workover and intervention expenditure is set to increase year on year, in order to counter-act the effects of production decline within the region’s more mature production zones.
The new report, launched today, is based upon months of in-depth research carried out first-hand by Douglas-Westwood’s oil & gas team. Douglas-Westwood’s Oil & Gas Manager, Steve Robertson, remarked: “The underlying modelling process on which the report’s drilling and market forecasts are built is the result of months of data collation from key industry players and represents a likely scenario for MENA oilfield services activity. This process has also enabled us to build a good understanding of the current active players in the market. The region exhibits a fascinating mix of service companies from National Oil Company subsidiaries to indigenous providers to international oilfield service companies.”
The research has enabled an assessment to be made of each of the key subsectors and underlying cost-centers that together form the market. Whilst expenditure growth is forecast to varying degrees in all MENA countries, Saudi Arabia is set to remain one of the most prominent regional cost-centres over the next five years. Senior Analyst Rod Westwood commented: “Saudi Arabia is responsible for approximately 25.5% of onshore drilling expenditure at present within the MENA region at just over $1 billion in 2008 and we expect this to increase to 26.7% by 2012 – between 2007 and 2012 the country can expect 42.4% growth in onshore drilling expenditure alone.”
