Market Trends of Middle East and Africa Coiled Tubing Industry
This section covers the major market trends shaping the MEA Coiled Tubing Market according to our research experts:
Well Intervention Application Segment to Dominate the Market
Coiled tubing services are the most preferred in well intervention applications, allowing stimulation, re-perforation, fluid pumping, fishing, sand control, and zonal isolation. The increasing capital expenditure on well performance enhancement and well cleaning is expected to drive the well intervention segment.
As per the OPEC Annual statistical bulletin 2022, the total crude oil production in the Middle East and African region was 2,732 '000 b/d in 2021. The new well intervention projects are expected to drive the Middle East and Africa coiled tubing market.
Likewise, for depleting reservoirs, the wells require completion or mechanical operation, such as fishing, perforation of producing wells, scale removal, setting up of a plug or packer, and increased production. The demand for these services drives the well intervention segment for coiled tubing.
The demand for well intervention operations in maturing offshore fields and other onshore fields in the Middle East and Africa is driving the coiled tubing services market. Moreover, these services are conventionally conveyed on coiled tubing and are designed to improve well and reservoir performance. The application of intervention services includes a matrix and fracture stimulation, wellbore cleanout, logging, perforating, nitrogen kick-off, sand control, drilling, cementing, well circulation, and mechanical isolation, presenting long-term contract opportunities for the coiled tubing services market.
In August 2022, the Abu Dhabi National Oil Company (ADNOC) announced a USD 1.17 billion contract for hiring thirteen self-propelled jack-up barges to drive offshore operational efficiencies and support the expansion of its crude oil production capacity to five million barrels per day (mmbpd) by 2030. The self-propelled jack-up barges will be hired along with the workforce and equipment. The barges will be utilized for rig-less well intervention, pre - and post-drilling operations, and topside maintenance and integrity restoration activities at offshore assets.
Therefore, the coiled tubing services market is driven by the rising well intervention operations.
Saudi Arabia to Dominate the Market
Saudi Arabia is one of the largest oil and gas markets in the Middle East and African region. The country's massive oil and gas reserves and extensive midstream and downstream infrastructure projects are expected to drive the market studied during the forecast period.
As of June 2022, 56 active onshore and eight active offshore rigs were operating in the country. Most of the oil and gas production in Saudi Arabia comes from onshore fields, indicating the dominance of onshore fixed assets in the upstream segment of the country. Although the onshore assets dominate the upstream segment, the demand for coiled tubing services in the country's offshore oil and gas industry is expected to witness significant growth in the coming years. For instance, in November 2021, the country's state-owned oil company, Saudi Aramco, awarded EPC contracts worth USD 10 billion (along with CAPEX, expected to reach USD 68 billion over the first ten years of development) for the vast Jafurah unconventional gas field development. This is the largest non-associated gas field in the Kingdom of Saudi Arabia (KSA). This is expected to create opportunities for coiled tubing services.
With an estimated 200 trillion standard cubic feet of gas, the Jafurah basin hosts the most extensive liquid-rich shale gas play in the Middle East. This shale play covers an area measuring 17,000 square kilometers. The production of natural gas at Jafurah is expected to ramp up from 200 million standard cubic feet per day (scfd) in 2025 to reach a sustainable gas rate of two billion scfd of sales gas by 2030, with 418 million scfd of ethane and around 630,000 barrels per day of gas liquids and condensates. These are essential feedstock for the growing petrochemical industry, making Saudi Arabia one of the world's largest natural gas producers.
Therefore, Saudi Arabia is estimated to be the largest market. It is expected to be driven by new well drilling, expanding production of well bases, and increasing lateral length in newly drilled horizontal wells.
