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Middle East Wireline Logging Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 100 Pages
  • April 2023
  • Region: Middle East
  • Mordor Intelligence
  • ID: 5174883
UP TO OFF until Dec 31st 2023
The Middle East wireline logging services market is projected to register a CAGR of over 2% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market has now reached pre-pandemic levels.

Key Highlights

  • Over the medium term, factors such as increased discoveries and increased investment in the offshore sector are expected to drive the market for wireline logging services.
  • On the other hand, the volatile nature of oil prices in recent years led to decreased exploration activity, causing a slowdown in the middle-east wireline logging services market.
  • Nevertheless, the increasing exploration activity in the region to compensate for aging mature oil and gas fields is expected to offer significant opportunities for the wireline logging services market in the region.
  • Due to the increased exploration activity in the country, Saudi Arabia is expected to dominate the market to compensate for declining fields elsewhere. Oil and gas drilling activity in Saudi Arabia is anticipated to grow because of the government policy to drive oil and gas production in the country.

Middle East Wireline Logging Services Market Trends

Onshore Segment to Dominate the Market

  • The market for wireline logging services in the Middle East saw a growth slowdown owing to the volatile oil prices in recent years. However, with oil prices expected to become stable in the coming years, the market is expected to show growth during the forecasted period.
  • Onshore oil production accounts for around 70% of global oil production. Increased onshore exploration activity globally in the forecasted period is expected to help grow the market for wireline logging services.
  • Moreover, the region is home to the world’s largest onshore oilfields, consisting of the Ghawar Oilfield in Saudi Arabia, with proven reserves upwards of 75 billion barrels of oil.
  • As of October 2022, there were 279 onshore rigs in the middle east, with a further 47 rigs located offshore.
  • The United Arab Emirates (UAE) is the fourth largest crude oil producer in the MENA region. According to OPEC statistics, the country produced an average of 2,718 thousand barrels/day of oil in 2021. During 2021, according to OPEC Annual Statistical Bulletin 2022, the country produced 54.49 billion cubic meters (Bcm) of natural gas.
  • Like its GCC neighbors, the country’s economy is heavily dependent on energy exports as the primary source of foreign revenue. As of 2021, according to OPEC Annual Statistical Bulletin 2022, natural gas reserves stood at 8.2 trillion cubic meters, while proven oil reserves stood at 111 billion barrels.
  • About 90% of the total reserves are in Abu Dhabi, followed by Dubai, Sharjah, and Ras al-Khaimah. The Umm Shaif, Bu Hasa, Upper Zakum, Lower Zakum, and Habshun are the largest oilfields in Abu Dhabi, while Dubai has the Fateh, Rashid, and Faleh fields. Sharjah, Ras al-Khaimah, and Um Al Quwain primarily have gas fields. Most of the acreage, both onshore and offshore, is relatively well explored, while the recent drilling has yielded a few significant discoveries.
  • Since November 2021, ADNOC was awarded over USD 16 billion in agreements for drilling-related equipment and services, including these awards and other agreements for wellheads, downhole completion equipment, liner hangers, cementing service, wireline logging, directional drilling, and logging while drilling.
  • In August 2022, ADNOC offered five framework agreements to major oilfield services companies, which include Al Ghaith Oilfield Supplies and Services Company, Al Mansoori Directional Drilling Services (Al Mansoori), Schlumberger Middle East SA (Schlumberger), Haliburton Worldwide Limited Abu Dhabi (Haliburton) and Weatherford Bin Hamoodah Company LLC (Weatherford). These framework agreements are for directional drilling and logging while drilling (LWD) services for both onshore and offshore assets and will run for five years, with an option of extending the contracts for two more years.
  • Kuwait is one of the major oil & gas producers in the Middle East region, which produced nearly 2.71 million barrels per day of crude oil and 12.88 billion standard cubic meters (bscm) of natural gas in 2021. The country holds a proven crude oil reserve of around 101.5 billion barrels and 1,784 bscm of natural gas in 2021.​
  • In October 2022, Precision Drilling was awarded four contracts in Kuwait, each for a five-year term with the option of renewing for one year. As a result of the contract awards, the company will have five active drilling rigs by the middle of 2023, increasing its total rig count from three to five.
  • As the crude oil prices are expected to recover, the upstream investment is expected to grow significantly and bring several projects online, thereby driving the market.

Saudi Arabia to Dominate the Market

  • Due to increased drilling and completion activities, Saudi Arabia is expected to maintain its dominance in the forecast period.
  • Saudi Arabia is the largest crude oil producer in the Middle East and has been a global leader in upstream technology. According to the Saudi Ministry of Energy, the country produced 9124.72 thousand barrels/day of crude during 2021, making it the 3rd largest producer of crude oil. In 2021, the country had 120.46 billion CU meters of gas, making it the eighth largest producer globally.
  • The country is the largest producer of crude oil in the Middle East and has the second-largest proven crude oil reserves globally. The country's E&P sector is dominated by the state-owned hydrocarbon utility Saudi Aramco, the world's largest exporter of crude oil.
  • The country's upstream sector is focused on developing massive limestone reservoirs in the country's onshore and offshore areas, such as the world's largest conventional onshore oil field (Ghawar) and the largest conventional offshore field (Safaniyah). These colossal fields have been producing for a long time and still have significant recoverable reserves. Saudi Arabia has also started the development of the Jafurah Shale play, the country's largest unconventional shale play, estimated to hold nearly 200 Trillion cubic feet of shale gas, which has further increased the demand for wireline logging services in the region.
  • Drilling and completing new wells is a significant investment; Saudi Arabia has one of the lowest drilling costs globally. According to Saudi Aramco, the average upstream lifting cost was USD 3 per barrel produced in 2021 and 2020.
  • Saudi Arabia has one of the largest hydrocarbon reserves globally. Despite the government's move to increase investment in sustainable solutions and renewable energy, the hydrocarbon industry forms the backbone of the economy. The government aims to maximize its profits over the next decade in a high-price environment. Saudi Aramco has disclosed plans to boost its capital expenditure (CAPEX) to USD 40-50 billion in 2022, up by nearly 50% from 2021, with further growth expected until 2025.
  • The company plans to increase its crude production capacity to 13 million barrels/day by 2027 and aims to increase gas production by nearly 50% by 2030. Such ambitious expansion plans, coupled with new-age goals of complying with sustainability and environmental standards, are expected to attract significant investments and require major innovation in the sector, factors which are expected to drive the upstream market in the country and the demand for OCTG in the country during the forecast period.

Middle East Wireline Logging Services Market Competitor Analysis

The Middle East wireline logging services market is partially consolidated. Some of the major players in the market (in no particular order) include Schlumberger Limited, Halliburton Company, Baker Hughes Company, and Weatherford International plc, among others.

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.4.1 Drivers
4.4.2 Restraints
4.5 Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes Products and Services
4.6.5 Intensity of Competitive Rivalry
5.1 Type
5.1.1 Electric Line
5.1.2 Slick Line
5.2 Hole Type
5.2.1 Open Hole
5.2.2 Cased Hole
5.3 Location of Deployment
5.3.1 Onshore
5.3.2 Offshore
5.4 Geography
5.4.1 Saudi Arabia
5.4.2 United Arab Emirates
5.4.3 Rest of Middle East
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Schlumberger Limited
6.3.2 Halliburton Company
6.3.3 Baker Hughes Company
6.3.4 Weatherford International PLC
6.3.5 SGS SA
6.3.6 Expro Group
6.3.7 Falcon Oilfield Services
6.3.8 OiLSERV Oilfield Services Company
6.3.9 Almansoori

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Schlumberger Limited
  • Halliburton Company
  • Baker Hughes Company
  • Weatherford International Plc
  • SGS SA
  • Expro Group
  • Falcon Oilfield Services
  • OiLSERV Oilfield Services Company
  • Almansoori