Mideast Oilfield Services to Top $13b

Mideast Oilfield Services to Top $13b
Mideast Oilfield Services to Top $13b

Higher exploration and production expenditure, financial durability of the companies and customers are likely to drive oilfields services market in the Middle East to record revenues worth $13.4 billion by 2019, a report said.

The surge in active rigs in the Middle East, backed by shift in focus toward onshore drilling, will fuel regional drilling to record revenues worth $88.2 billion by 2019, Ken Research, a leading global industry research and information service company, said in a report, Trade Arabia reported.

The oilfield services are used at every stage of the life cycle for oilfield development, including exploration, production, drilling, well intervention and development, completion, waste management and other development stages of the life cycle of an oilfield. Middle East oilfield services were valued at $9.7 billion in 2014, driven by higher enhanced oil recovery and a rise in mature fields, the report said.

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 oil services companies in the Middle East as compared to any other geographical locations, the report added.

Middle East's drilling services industry demonstrated strong fundamentals, a well-built growth and increased activity as compared to any other region during 2009-14.

The report also said demand for drilling services is rising with growing drilling activities in both onshore and offshore oilfields.

The cost of operating drilling rigs is an important factor when considering which oil regions are suffering the most in the current low oil price environment.

The drilling market in the region is likely to face marginal slowdown in terms of revenue growth, owing to subdued crude oil prices, the report speculated.

However, in the long run, the prices of crude oil will become stable, along with the prospects of a surge in drilling demand, Ken Research said, adding that players operating in the drilling and oilfield services have to enhance their E&P expenditure.