Emerging Markets Focus
100 200 300 400 500 600
0
MENA: Quarterly Average Rig Count 2005 - 2010 Source: Schlumberger,Markaz Analysis
A select few of these regional/local OFS companies are in a position to compete effectively in niche areas with the international OFS companies. Such companies have been able to capitalize on the opportunities presented in the OFS segment as a result of being converted from family-owned to corporate structures, growing inorganically through well-timed acquisitions, and/or establishment of joint ventures (JV) with reputed international companies.
10000 12000 14000
2000 4000 6000 8000
0
UAE Qatar Saudi Arabia
Bahrain Egypt Oman Kuwait
MENA: Number of Oil & Gas Companies Source: Markaz Analysis
The Opportunity
We believe there continues to be an opportunity for regional OFS companies to jump on the bandwagon. World oil demand is expected to continue to grow unabated, leading to a call on the region to further increase production.
It is widely accepted that in the long-term, most increases in the production and reserves in the MENA countries, are not expected to result from existing giant fields or from any major new discoveries, but from marginal fields and as a result of applying enhanced production and recovery techniques in existing fields.
This is where the OFS companies come into the picture. Both, development of smaller fields and production enhancement, are highly service intensive. To sweeten the deal, NOCs are promoting regional companies through favorable policies and initiatives. We believe that in the near-future, as a result of the increasing emphasis on local content, regional OFS companies will potentially have access to a larger portion of the total OFS spend.
Iraq Yemen 13242
Land Offshore
1799 826 608 586 577 426 323 91
Drillers and Dealers :::
::: February 2011 Edition
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