Drilling News – Onshore Drilling Expected to Increase

In recent drilling news it was announced that onshore drillers are poised for boom times in the Middle East, as Saudi Arabia and the United Arab Emirates aim to boost capacity.

It is predicted that there will be an increase of 25% demand for land rigs in the Middle East GCC to 2027.

The Middle East and North Africa (MENA) currently have 1,159 land rigs. Of these, 526 units are in the GCC, or 45% of the MENA fleet. Another 317 are in North Africa and 316 in the non-GCC Middle East.

Demand in the GCC states stayed “relatively steady” during the pandemic downturn. By 2022, activity was back at 2019 levels.

By 2027, rig demand in the GCC area will be 53% higher than 2019. “This will be driven by production capacity increases at all major onshore producers, with many of the projects required already having already passed the Field Investment Decision (FID) process, supporting the forecast.”

Over the same period, the non-GCC states in the Middle East will see demand drop 12%, while North Africa will have an increase of 8%.

In further drilling news the GCC will also lead MENA in terms of utilisation. GCC states will have utilisation of 70% in 2023, rising to 78% in 2027. MENA will average 39% this year, rising to 42% by 2027.

Other bright spots include Algeria, which will increase from 47% to 60%, and Iraq, rising from 37% to 46%. These two countries are below the GCC powerhouses, but there is significant upside potential to both.

Algeria is benefiting from its gas export plans with Europe. Iraq has “set ambitious production targets, which will require a major increase in utilisation of its fleet, far beyond previous forecasts.

Oi ans Gas News 23rd May 2023