Oman Directional Drilling Industry

Oman Directional Drilling Market Analysis

The Oman Directional Drilling Market is expected to register a CAGR of greater than 20.48% during the forecast period.

• The onshore segment is expected to witness significant growth during the forecast period, the rising interest in the development of unconventional resources, like tight gas, has also helped the market for directional drilling to grow in the country.
• The more ambitious projects, such as offshore fields and unconventional fields. The offshore region in the country remains largely unexplored. Such projects have the potential to significantly increase the oil and gas activity in the country, in turn, providing market opportunities.
• Natural gas production growth is significant, supported by the promising developments in several new projects in Oman, this is likely to propel the growth of the Omani directional drilling market over the forecast period.

Oman Directional Drilling Market Trends

Onshore to Dominate the Market

• The onshore traditionally directional drilling was associated with conventional oil and gas production, but with the advent of unconventional resources, the scope for directional drilling has increased in the country.
• The development of the Khazzan-Makarem gas field is a prime example of the development of unconventional resources. The field is a tight gas field with estimated reserves of around 100 trillion cubic feet. The production from the field started in 2017, and it was around 1 billion cubic feet per day in 2019.
• Phase 2 of the Khazzan Gas Project got approval in April 2018, and as of February 2019, BP Oman was planning to invest around USD 16 billion in the first and second stage development of the project.
• The second phase is expected to be completed by the end of 2020, and an added production of half billion cubic feet per day is expected by the start of 2021 when Ghazeer field starts producing.
• As of March 2020, Oman had around 55 active rigs (all onshore), representing an inclination toward onshore drillings market.

Increase in Natural Gas Production to Dominate the Market

• Gas has been playing an important role in the Omani energy sector, since early 2000, and this trend is expected to continue during the forecast period.
• In 2018, the country's natural gas production reached 3.5 billion cubic feet per day (bcf/d), representing an increase of 11.4%, as compared to the previous year. The plans for Mabrouk North East field follow the successful development of the Khazzan gas field by BP.
• The second phase of the project, known as Ghazeer, is currently underway, and it is expected to increase gas production in the Khazzan field, from the current level of around 1 bcf/d to 1.5 bcf/d.
• In the first half of 2019, the country's natural gas production reached 3.8 bcf/d during the same period.

Oman Directional Drilling Industry Overview

The power rental market is fragmented. Some of the key players in this market include Petroleum Development Oman, Total SA, Schlumberger Limited, Baker Hughes Company, Halliburton Company.

Oman Directional Drilling Market Leaders