The market for oilfield services in the Middle-East is expected to grow at a CAGR of more than 3.5% during the forecast period of 2020 – 2025. Factors such as rising investments in the oil & gas industry, and rising demand for natural gas are expected to be the major drivers for the oilfield services market in the region. However, geopolitical tension and civil unrest in few countries such as Iraq, Iran, Syria, and Lebanon are expected to have a negative impact on the growth of oil & gas industry in the region, in turn, hindering the growth of oilfield services in the coming years.

  • The drilling services accounted for the largest share in the market in 2018, owing to the increasing exploration and production activities in the region.
  • New oilfield discoveries and plans to begin production from unconventional reserves are expected to create significant opportunities for the oilfield service providers in the near future.
  • Saudi Arabia is expected to witness a significant growth during the forecast period owing to the country’s plans to exploit its unconventional resources.



Key Market Trends

Drilling Services to Dominate the Market

  • In 2018, drilling services accounted for more than 20% of the market share and is expected to continue its dominance in the coming years. Drilling services include directional drilling services, coiled tubing, and re-entry, measurement while drilling, logging while drilling, reservoir navigation services, casing/liner drilling systems, surface logging services, coring services and hole enlargement.
  • The drilling services business is primarily a contractual business which gives services to the E&P companies. The service is needed at every phase of the project’s life cycle namely exploration, production, field development and for studies, as well.
  • Middle-East drilling service market is expected to grow significantly during the forecast period, driven by the increased enhanced oil recovery (EOR) and increased number of mature fields in the region. In 2018, the number of active drilling rigs in the region reached 567 rigs, representing an increase of around 5.9% over the previous year’s level.
  • In addition, the presence of huge oil & gas resources in the region, out of which many needs to be explored and exploited offers an extensive opportunities to the drilling service providing companies in the Middle-East as compared to any other geographical region across the globe.



Saudi Arabia to Witness a Significant Growth

  • Saudi Arabia is one of the major oil producers globally. The crude oil exports account for country’s 90% of total export earnings. The Kingdom of Saudi Arabia (KSA) has maintained high crude oil production levels in spite of a drop in global crude oil prices.
  • The country also has plans to expand the giant Khurais oilfield, adding 300,000 b/d of additional production capacity. In addition, expansion of the Berri field is likely to add an addition 250,000b/d production capacity, although a timeline for this project has yet to be confirmed.
  • Saudi Arabia is targeting an aggressive ramp-up in gas production for use in the domestic industrial and power sectors, displacing the role of crude and releasing it for export.
  • The natural gas production in Saudi Arabia has been planned to be doubled in the coming decade, which is expected to result in increased drilling activities related to gas production. In its endeavour to upscale the gas production, Saudi Aramco awarded a series of new contracts for development of Fadhili gas program. The development of such projects is likely to drive the oilfield services market in Saudi Arabia.



Competitive Landscape

The Middle-East oilfield services market is consolidated. The key players in this market include Baker Hughes Co., Halliburton Company, Schlumberger Ltd., and Weatherford International plc.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • Report customization as per the client’s requirements
  • 3 months of analyst support