According to the resources, GCC and global oil services and equipment providers are going to benefit from the Middle Eastern oil and gas production this year. There have been several deals during this summer which has seen a boost in the investment in this field.
Steve Connolly who is the regional managing director for Altrad says that this year there is an increase in production, probably 25% more than last year.
The CEO of Abu Dhabi-based Gulf Marine Services, Duncan Anderson, said that the countries have increased their production.” “Saudi Arabia,” he told, is now producing more oil in a day, it is the same story in UAE, Kuwait, and Iraq
“We have a secured orders backlog of over $120 million and are confident that will increase significantly as we move forward.”
According to a report by US consultancy Grand View Research, “The global oilfield services market is expected to be worth $139 billion by 2025.”
The largest Arabian shipyard in the Gulf – King Salman Global Maritime Industries Complex
Lamprel which is the UAE-based oil rig construction and maintenance company is speeding up the work at King Salman Global Maritime Industries Complex. It is a shipyard in KSA, which will be the largest shipyard in the Arabian Gulf. It will be almost 12 million square meter facility. It will have offshore oil and gas rigs, large crude carriers and offshore support vessels and commercial vessels. It shows that there will be an increase in oil production and a huge opportunity for the oil services providers in the Middle East.
Contracts for Companies in Iraq
Weir Oil and Gas Dubai also signed a $50 million multi-year contract in Iraq. They signed up with two major oil companies in Iraq which have cemented their presence even more in the region.
Algeria also has huge gas fields in its southeastern parts. Petrofac won the deal of $600 million in contracts with Algeria’s Sonatrach. It will help develop the Tinhert gas fields there. The same company has also signed a deal in Iraq with state-run Basra oil company. The deal is of $369 million. The company will help with the construction of a new crude-processing facility in the Majnoon oilfield. This oilfield will have a capacity for producing 200,000 barrels of crude oil in a day.
Ayman Asfari who is the CEO of Petrofac, over the course of next three years, the company will bid for $8 billion of “petrochemical” projects in this region. According to Afsari, Saudi Arabia and UAE are also increasing the production of gas as there is a shortage of gas in the countries. Saudi Arabia is planning to double the production of gas by the year 2030.
There has been approval of a new pipeline by Jordan’s Cabinet which will supply oil and gas from Busra which is in southern Iraq to the Jordan’s Aqaba port. The countries which were restricting the production of the oil are not increasing it.
Because of the increase in oil production, UAE, Kuwait and Iraq will also need the support of oil services and equipment groups.
As mentioned earlier, according to a report by US consultancy Grand View Research, “The global oilfield services market is expected to be worth $139 billion by 2025.”
Source: Arab News