Middle East Wireline Service Market is anticipated
to grow at a steady pace in the forecast period 2024-2028. The growing exploration activity in the regions to compensate
strong oil and gas areas production rate are expected to offer substantial
opportunities for the Middle East Wireline Services market. For instance, the Saudi Arabia location is
home to the biggest onshore oilfields in the world, notably, Saudi
Arabia's Ghawar Oilfield, being proven reserves of up to 75 billion barrels of
oil.
The term "wireline" in the oil and
gas industry generally refers to the use of multi-conductor, single conductor,
or slickline cable, or "wireline," as a means of transportation for
the collection of subsurface petrophysical and geophysical data as well as the
provision of well construction services like pipe recovery, perforating, plug
setting, well cleaning, and fishing. Wireline comes in four different
fundamental types: single conductor, multi-conductor, slickline, and braided
line. Sheathed slickline and fiber-optic lines are two further varieties of
wireline.
Government multinationals operating in the
Middle East, including Saudi Aramco, QatarEnergy, and Abu Dhabi National Oil
Company (Adnoc), are significantly increasing their capacity to produce oil and
gas.
By the end of
this decade, numerous major Western energy corporations are yet to make
comparable upstream expenditures and capacity enhancement projects.
Rising Number of Rig Counts and Increasing
Middle East Region Production Rate Fueling the Market Growth
The market is anticipated
to be driven by elements like rising investments, expanding gas infrastructure
development, and expanding desalination plant capacity over the forecast
period. Furthermore, the Middle Eastern region produced 1,297.3 metric tons of
crude oil in 2020, which made up 31.1% of the world's total production. On the other side, the current fluctuation in
oil prices resulted in less exploratory activity, which reduced the demand for
middle east wireline services.
The rising
number of rigs counts in the region, is driving the market growth in the
forecast period. For instance, in the Middle East as of October 2022, there
were 279 onshore rigs and an additional 47 offshore rigs.
For instance,
the Italian gas company ENI reported a gas deposit in Abu Dhabi's offshore
Block 2 in 2022. It is believed that the well has 1.5 to 2 trillion cubic feet
of processing gas, and the well's completion is anticipated to take place in the
upcoming period. The Middle East wireline market would benefit directly from
these new offshore exploration projects.
Growing numbers of deep-water
and ultra-deepwater drilling projects will offer this industry lucrative
opportunities throughout the course of the projection period.
Adoption Of Technological
Advancement in Oilfield
The adoption of smart digital
devices, services, and solutions had been made possible by a growing emphasis
on the operational performance of oilfield equipment and a drop in capital
costs. Oilfield service companies use cutting-edge wireline cabling technology
to lower and raise any kind of instrument or piece of equipment into and out of
the wellbore. Intervention, pipe recovery, well completion, and reservoir
evaluation are the four main services provided by wireline services. These
services are primarily used to improve the operational performance of oil
wells, due to which the market is expected to grow in the forecast period.
Increasing attempts to include effective production methods to increase output and the presence of old and mature wells in diverse locations are expected to fuel market growth. According to a Halliburton survey, mature fields produced nearly 70% of the world's oil and gas. Thus, by utilizing cutting-innovative technologies like EOR (Enhanced Oil Recovery) technologies, these companies are largely focused on enhancing recovery methods and extending the life of mature fields. The utilization of thermal EOR to increase heavy oil output also contributes to the market's expansion.
Growing
Investment in Oil and Gas Sector
Kuwait and Saudi Arabia
have announced plans to restart oil production project in 2023,
According to an unnamed Kuwaiti oil official, "trial production of about
10,000 barrels per day (bpd) from Khafji started working on February
25." In August 2023, "The field should be producing about 60,000 bpd.
Owing to this project and investment in Saudi Arabia, the demand of wireline
service market in middle east region is expected to grow with a high CAGR in
the forecast period.
The fourth-largest crude
oil producer in the MENA region is the United Arab Emirates (UAE). OPEC figures
show that in 2021, the nation produced 2,718 thousand barrels of oil per day on
average. OPEC Annual Statistical Bulletin 2022 stated that the nation produced
54.49 billion cubic meters (Bcm) of natural gas in 2021.
The region's upstream
sector focuses on constructing sizable limestone reservoirs in the nation's
onshore and offshore locations, including the largest conventional offshore
field. These enormous fields have been in operation for a while and still
contain a sizable number of recoverable reserves. The Jafurah Shale play, which
is Saudi Arabia's largest unconventional shale play, and is expected to contain
about 200 trillion cubic feet of shale gas, has already begun to be developed,
which has led to an increase in the demand for wireline services in the region. The offshore oil & gas drilling sector
has been subdued in the past few years, mainly due to the crude oil price being
lower than the breakeven price of several offshore oil and gas fields. As a
result, the demand in the oil and gas wireline services market was negatively
impacted.
Recent Developments
According to a Gulf News report from 2019, ADNOC Abu Dhabi National Oil Company (ADNOC) plans to considerably increase the number of its unconventional wells in its upstream branch over the coming years while increasing its conventional drilling activities by 40% by 2025. By participation in this operation, the state-owned company will be able to achieve its goal of producing four million barrels of oil per day by the end of 2020 and maybe five million by 2025.
In Dubai, Dragon Oil company is a well-known upstream oil and gas exploration, development, and production firm. In order to maximize the potential of already-existing projects, the company has declared its intention to invest roughly USD 13 billion over the next ten years. In particular, the company (Dragon Oil) wants to boost output in the Caspian Sea's Cheleken Basin and wants to focus more on making investments in Southern Iraq's Al Faihaa field. In 2025, these two projects aim to produce 200,000 bpd on their own.
In the Iranian region of Khuzestan, a new oil field was found in 2020. An estimated 50 billion barrels of oil are present in the field. The Wireline Service market are anticipated to benefit from developments in these recently found resources of oil.
Precision Drilling received four contracts in Kuwait in October 2022, each with a five-year term and a one-year option for extension. The company will have five operational drilling rigs by the middle of 2023 as a result of the contract awards, bringing its overall rig count from three to five.
Arabian Oil Company have announced new projects for EPC contracts, gas field development, onshore projects, and oil storage facilities.
According to a recent analysis from Oslo-based Rystad Energy, investment in the Middle East's offshore oil and gas (O&G) industry is expected to rise for at least the next three years, from USD 33 billion in 2023 to USD 41 billion in 2025. Large-scale projects in Saudi Arabia, Qatar, and the UAE will propel offshore upstream investment in the region to a new high.
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Market Segmentation
The Middle East Wireline Service
Market is divided into well type,
service, location, application, and region. Based on Well Type, the
market is segmented into Open Hole and Cased Hole. Based on Service, the market
is segmented into Electric Line and Slick Line.
Based on location, the market is segmented into Onshore and Offshore.
Based on Application, the market is divided into Well Completion, Well
Intervention, and Well Logging. Based on region, the market is segmented into Saudi
Arabia, UAE, Qatar, Kuwait, Bahrain, and Rest of Middle East.
Market Players
Major
market players in the Middle East Wireline Service Market are Schlumberger Limited, Halliburton Company, Baker Hughes
Company, Expro Group, Weatherford International PLC, OilServ FZCO.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 – 2022
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Estimated Year
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2024
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD
Million, and CAGR for 2018-2022 and 2024-2028.
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Report coverage
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Revenue forecast, company share, growth factors, and trends
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Segments covered
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Well Type
Service
Location
Application
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Regional scope
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Saudi Arabia,
UAE, Qatar, Kuwait, Bahrain and Rest of Middle East
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Key companies profiled
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Schlumberger Limited, Halliburton
Company, Baker Hughes Company, Expro Group, Weatherford International PLC, OilServ
FZCO
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Customization scope
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10% free report customization with purchase. Addition or alteration to
country, regional & segment scope.
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Pricing and purchase options
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Avail customized
purchase options to meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report Scope:
In this report, the Middle East Wireline
Service Market has
been segmented into following categories, in addition to the industry trends
which have also been detailed below:
·
Middle East Wireline Service Market, by Well Type:
o
Open Hole
o
Cased Hole
·
Middle East Wireline Service Market, by Service:
o
Electric Line
o
Slick Line
·
Middle East Wireline Service Market, by Location:
o Onshore
o Offshore
·
Middle East Wireline Service Market by Application:
o
Well Completion
o
Well Intervention
o
Well Logging
·
Middle
East Wireline Service Market, by region:
o
Saudi Arabia
o
UAE
o
Qatar
o
Kuwait
o
Bahrain
o
Rest of Middle East
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in the Middle East Wireline
Service Market.
Available Customizations:
Middle East Wireline Service Market report with the given market data,
Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Middle East Wireline Service Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]