Saudi Arabia Drilling Rigs Market stood at USD 4074.03 million in 2022 and is expected to grow at a CAGR of 4.84% during 2023E-2028F. The market is robust, and is analyzed by trends, owing to the growing exploration and production expenditures, and rising energy demand is in the future. Moreover, increasing demand for heat and electricity is driving the growth of the Saudi Arabia Drilling Rigs Market in the forecast period.
Onshore (Land) held the dominating market share of 77.95% in 2022 in the Saudi Arabia Drilling Rigs Market. Saudi Arabia has one of the largest onshore oil and gas fields and reserves. Moreover, the increase in the demand for fossil fuels and on-shore exploration and production activities has a direct impact on the demand for onshore drilling rigs. For instance, Saudi Arabian Saipem (SAS) has deployed, 28 Onshore Drilling Rigs in Saudi Arabia, out of which 26 are 2000 HP & 2 are 1500 HP. These include 14 Conventional type Rigs, 8 joystick Rigs, and 6 Cyber Base Rigs.
Land Rigs has a market share of 77.95% in terms of rig type as of 2022. The Western, Northern, and Central provinces are 100% onshore, while the Eastern Province is 71.95% onshore. Because the majority of the oil reserves are located onshore, the demand for land rigs in Saudi Arabia is increasing. At the same time, many companies are releasing trends and developments in land rigs. For example, ADES acquired Weatherford, which included 11 onshore drilling rigs in Saudi Arabia to strengthen its onshore capabilities.
Eastern Saudi Arabia being the dominant segment, held 78.62% of the market share in the Saudi Arabia Drilling Rigs Market in 2022. The Kingdom of Saudi Arabia's Eastern Region is its largest and has contributed particularly to the region's economic development. According to the state-run Saudi Press Agency, Saudi Arabia's Energy Minister stated that oil giant Saudi Aramco discovered two unconventional natural gas fields, Awtad and AlDahna, in the country's Eastern Province (SPA). These new exploration of oil fields is driving the market for the drilling rigs.
ADES International Holding Plc, ZP Arabia Drilling Company (ZPADC), Saipem Taqa Al Rushaid Fabricators Company Ltd., Saudi Aramco Nabors Drilling, Arabian Drilling Company, and Saudi Aramco Nabors Drilling are significant players in the competitive landscape. Companies are actively participating in mergers and agreements. For example, Saudi Aramco and US-based NOV (National Oilwell Varco) formed a joint venture called Arabian Rig Manufacturing to produce drilling rigs and related equipment.