Saudi Arabia's completion equipment and services market is expected to grow at a CAGR of around 2.5% during the forecast period. With the COVID-19 outbreak in Q1 of 2020, the market witnessed a negative impact with international crude oil price decline. The low crude oil price created an unfavorable environment for the majority of the exploration and production companies operating in the country, leading to delay and suspension of contracts. Factors such as the development of shale gas reserves in Saudi Arabia are expected to drive the market. However, high volatility in crude oil prices is expected to hinder the market growth during the study period.
- Onshore acts as a major sector that contributes a major share in oil & gas production during 2020. During the study period, the sector is expected to act as a significant sector for the market studied.
- In April 2020, the international crude oil price decreases to around USD 20 per barrel, which created an unfavorable environment for all the exploration and production companies. With such a crude oil price, upstream companies fail to recover its expenses while crude oil production.
- Increasing development work on the oil & gas offshore sector is expected to drive the market during the study period.
Key Market Trends
Onshore Expected to be a Significant Sector
- Onshore activities account for the largest market in oil field services in Saudi Arabia. During the period of downturn, the onshore rig count in the majority of oil and gas economies declined and negatively affected the oil field services.
- However, Saudi Arabia continued its drilling program to maintain its position as one of the global leaders in oil production capacity. This was supported by the fact that a number of oil and gas fields in Saudi Arabia have break-even prices lower than USD 25 per barrel. This resulted in Saudi Arabia being one of the promising markets for well-cementing equipment and services, during the study period.
- As of August 2021, there are nearly 52 rigs operating in the onshore region and is expected to increase further with the Marjan oil field expansion, and the Berri field expansion projects. The projects are expected to schedule to be commissioned in 2023.
- Further, a new wave in demand for oil field services in the country is expected to come from the development of its onshore shale reserve. The country approved drilling for shale gas in the Jafurah basin in January 2020. A rough estimate for the shale gas in Jafurah is 600 trillion cubic feet, which is expected to start production from 2024.
- Hence, with such projects in hand, the sector is likely to act as a significant sector during the forecast period.
Increasing Development Work on the Oil & Gas Offshore Sector is Expected to Drive the Market
- Saudi Arabia is the second-largest oil producer in the world and is expected to maintain the rank with State-owned oil and gas company, Saudi Aramco's commitment to boost production to around 12.55 million barrels per day by 2025, from its existing 11.03 million barrels per day in 2020.
- Hence, to meet its target the country has initiated various development projects in both onshore and offshore locations, which is likely to increase the oil wells count from 522 in 2020.
- In September 2021, Saudi Aramco announced to open USD 10 billion gas project for foreign investors. The project is to develop its Jafurah field. The field is estimated to hold 200 trillion cubic feet of natural gas, and Saudi Aramco is expected to begin production there in 2024.
- Further, Saipem SpA in May 2021 has been awarded the extension of two contracts for onshore drilling activities in Saudi Arabia for a duration of 5 and 10 years.
- Hence, such a scenario is expected to provide favorable conditions for the market to drive during the study period.
The Saudi Arabia completion equipment and services market is moderately fragmented. The key players in the market include Schlumberger Ltd., Halliburton Company, Baker Hughes Company, Weatherford International plc, and National-Oilwell Varco, Inc among others.
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Table of Contents
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD billion, till 2026
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
4.8 Impact of COVID-19 on the Market
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Schlumberger Ltd.
6.3.2 Halliburton Company
6.3.3 Baker Hughes Company
6.3.4 Weatherford International plc
6.3.5 National-Oilwell Varco Inc.
6.3.6 TAQA KSA
6.3.7 Superior Energy Services Inc.
6.3.8 Weir Group PLC
6.3.9 Trican Well Services
6.3.10 Welltec A/S
A selection of companies mentioned in this report includes:
- Schlumberger Ltd.
- Halliburton Company
- Baker Hughes Company
- Weatherford International plc
- National-Oilwell Varco Inc.
- TAQA KSA
- Superior Energy Services Inc.
- Weir Group PLC
- Trican Well Services
- Welltec A/S