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How Iraq Oilfield Services Market Is Positioned?

Posted on 29 December 2017 by KenResearch Energy and Utilities ,

Iraq is an important oil producing nation in the global market with oil industry being the major contributor to GDP. In 2016, the country exported petroleum product worth USD 43.8 billion in 2016. Significant increase in exports was reported in terms of barrels of oil but increase in exports revenue was much lower due to drastic fall in oil prices in the global market. Revenue from oilfield service increased from USD ~ million in 2012 to USD ~ million in 2017. Revenue recognition was mainly done by major oilfield services companies which include Schlumberger, Halliburton, and Baker Hughes. Many Chinese companies have also made market entry in Iraq. The revenue generation was mainly attributed to increase in oil production and maintenance of wells and rigs which have already aged and need significant investment in developing the infrastructure.

Drilling industry is an integral part of petroleum sector as it serves as an important link between locating oil and gas reserves and extraction of these reserves from oil and gas fields. Drilling industry reported decline in revenue in 2015 to USD ~ million which further continued in 2016 to revenue of USD ~ million. It registered a minor recovery in 2017 with a growth of USD ~ million. Integrated oilfield services enable the oil companies to strategically mobilize drilling rigs, equipments and services and gain competitive advantage. The combination of these services results in an efficient, convenient and comfortable infrastructure. This trend has gained increasing popularity in the drilling industry in Iraq. Iraq is planning to start offshore oil and gas exploration which along with capacity addition in onshore is expected to boost oilfield services industry in future.

Oilfield Services Market Segmentation

By Region: Northern Iraq includes the oilfield in Kurdistan region and in 2017; it has been marred with conflicts from ISIS and separatists for independent Kurdistan. Oilfield services generated estimated revenue of USD ~ million in 2017. Majority of the revenue was from operation maintenance and production related services. Nearly ~ million barrel of crude was pumped every day which required continuous maintenance. Aging infrastructure for oil production was other reason for high demand of oilfield services. Southern Iraq generated estimated revenue of USD ~ million. Production related oilfield service was the highest as production was high in 2017.

Trends and Developments

Many international oil companies have presence in Iraq and many more have shown interest in developing the oil fields in Iraq. Iraq plans to oil capacity expansion by undertaking large export infrastructure projects and developing a diverse coalition government structure in order to attract major investments. Integrated oilfield services enable the oil companies to strategically mobilize drilling rigs, equipments and services and gain competitive advantage. The combination of these services results in an efficient, convenient and comfortable infrastructure.

Drilling Services Market Size

Revenue from oilfield service increased from USD ~ million in 2012 to USD ~ million in 2017. Revenue recognition was mainly done by major oilfield services companies which include Schlumberger, Halliburton, and Baker Hughes. Many Chinese companies have also made market entry in Iraq. The takeover of Mosul by Islamic State militants in June 2014 had fueled defense spending in 2013 and 2014, pinching the national budget so much that investments towards oil production are often insufficient to operate at max capacity leading to poor demand for oilfield services. The market for oilfield services registered constant increase in revenue in the period 2014-2017. The revenue generation was mainly attributed to increase in oil production and maintenance of wells and rigs which have already aged and need significant investment in developing the infrastructure.

Market Segmentation

Drilling services business in North of Iraq is limited due to problem of ISIS and separatist movement of independent Kurdistan. Even though production of oil was not halted, it declined significantly. It has been estimated that revenue from drilling new wells and providing other drilling related services generated revenue of USD ~ million (Provisional Estimates) in 2017. Southern Iraq was the major producer of oil in Iraq and accounted for majority of drilling related activity. Drilling and related services generated an estimated USD ~ million in 2017. Exxon and Shell were two major clients issuing drilling contracts in South of Iraq.

Source: https://www.kenresearch.com/energy-and-utilities/oil/iraq-oilfield-drilling-services-market-2022/142306-103.html

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Iraq Oilfield Services Market is Expected to Reach USD 11.2 Billion in 2022: Ken Research

Posted on 27 December 2017 by KenResearch Energy and Utilities ,

Iraq Oilfield Services Market by Region (North and South), by Type (Operations, Engineering and Fabrication, Reservoir/ Seismic Services and Exploration, Decommissioning). Iraq Drilling Services Market by Region (North and South) Market Share of Major players in Iraq Oilfield Services Market (Schlumberger, Halliburton, Weatherford, Baker Hughes and others).

December 2017 |Iraq News 

  • End of ISIS control in northern Iraq and political stability in country is expected to have positive impact on development of oil and oilfield services industry in the country.
  • Foreign companies are expected to continue their dominance in the Iraqi oilfield services market as domestic companies lack technology and R&D infrastructure.
  • Drilling Services will pick up demand as Iraq expands its oil production capacity to more than 6.0 million barrels per day.
  • Iraq drilling and oil field services is expected to register double digit growth in the Northern Iraq with services mainly related to repair and maintenance of damaged wells during war.

The Oil Ministry invited bids to develop three fields in southeastern Maysan province, Dujail, Kumait and Rifai. The Ministry of oil in Iraq has projected that country will be able to achieve an output of 6 mbopd by 2021 with majority of the oil coming from south of Iraq. Iraq is planning to start offshore oil and gas exploration to boost the OPEC nation’s reserves. All these factors are expected to have positive impact on demand for oilfield services in the country. Rising production will remain the key driver for demand for oilfield services in future with majority of the revenue coming from operation, engineering, fabrication, and installation. Seismic exploration of new areas as well as reconstruction of oilfield in the northern part is expected to drive the market in the next two years.

New investments in oil and gas sector are expected to be marred by increased defense budget and stabilizing the socio economic conditions of the country. Fear of internal conflict and poor stability of the political regime in the country creates negative investment sentiment. Lack of clarity on regulation and poor foresightedness of the government in development of oil sector may further impact the development of oilfield services in the country. Corruption is another factor that may have negative impact on investment sentiments.

Market for oil field services will be largely driven by increased production capacity and drilling industry will be largely driven by government’s plans to further enhance the production capacity. Stability in North is expected which will have positive impact on the overall oilfield services market. Schlumberger, Weatherford, and Halliburton are expected to remain the largest oilfield services company in the country. Significant rise of Chinese companies is expected considering the increased trade of oil and investment of Chinese companies in oil and gas sector of Iraq. Domestic companies in the country are also expected to gain some business but growth is expected to be much lower due to lack sufficient capital and technology.

Analysts at Ken Research in their latest publication Iraq Oilfield and Drilling Services Market by Region (North and South Iraq), by Oilfield Service Type (Operations, Engineering and Fabrication, Reservoir/ Seismic Services and Exploration, Decommissioning) - Outlook to 2022 believe that promoting political stability through dialogues and negotiations and promulgating favorable laws that promote investment sentiments among foreign investors will give boost to the oil and gas sector in the country. Investment in R&D related to detailed and scientific exploration will help better assessment of oil and gas potential and selection of area for further drilling and auctioning new field for further development.

Iraq oilfield services market is expected to register positive CAGR during the period 2017-2022. High dependency of economy on oil revenue and stabilizing political situation are expected to have positive impact on the demand for oilfield services.

The report provides information on market size of the Iraq Oilfield Services and Iraq Drilling Services Market, market segmentation on the basis of type of service, by region, and market share of major companies.

Key Topics Covered in the Report

Major Oilfields in Iraq

Iraq Oilfield Services Market

Value Chain Oilfield Services Iraq

Market Size Iraq Oilfield Services

Oilfield Services Market Trends

Number of Completed Wells Iraq

Number of Active Rigs Iraq

Iraq Oilfield Services Industry

Drivers Oilfield Services Iraq

Trends Iraq Oilfield Services Market

 Government Regulations Oilfield Services

Major Companies in Oilfield Services Market

Future Iraq Drilling Services Market

Oilfield operations revenue Iraq

Schlumberger Revenue Iraq

Halliburton Market Share Iraq

Seismic Exploration Oilfields Iraq

Political Situation Iraq Oilfields

North Iraq Oilfield Market

South Iraq Oilfield Services Market

Weatherford Market Share Iraq

Decommissioning Services Oilfield Iraq

Seismic Services Iraq Oilfield Market
 

For more information about the publication, refer to below link:

https://www.kenresearch.com/energy-and-utilities/oil/iraq-oilfield-drilling-services-market-2022/142306-103.html

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