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Middle East Land Drilling Market
The Assignment / Client’s Problem
- Review the NOC’s onshore drilling requirements to help identify and target suitable land drilling contractors (Middle East and International)
- International rig contractor scouting based on the identified criterion
- Generate a short-list of viable drilling partners willing to mobilise equipment to the Middle East
Westwood’s Approach & Analysis
- Proprietary data tracks the international land drilling fleet (c.8,100 rigs)
- Bespoke modelling allowed Westwood to gauge market size, equipment utilisation, spending, and equipment trends by country
- A comprehensive landscaping exercise served to identify and evaluate land drilling contractors; reviewing individual rig specifications, existing contracts, utilisation rates, financial stability, international experience,
- Industry consultations with 30+ short-listed market participants in regional and international markets to gauge wiliness and/ or ability to mobilise to the Middle East
The Outcome & Benefit
- Aided the NOC’s strategy to high-grade the in-country land drilling fleet, with the aim of sourcing rigs between 2,000-3,000HP
- Preliminary consultations with industry participants eliminated unsuitable contractors, and provided a foundation for meaningful contract discussions
- Significantly improved the NOC’s knowledge of the rig contractor landscape within the Middle East and International markets, a factor which proved critical to determining viable partners
- Key recommendations were shared with the NOC, including initial contract terms, rig specifications, Mobilisation to the Middle East is an attractive proposition for some land rig contractors provided there is a provision of attractive contract durations and future options
