New York, June 20, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Offshore Drilling Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06469585/?utm_source=GNW
The oil prices plunged to negative for the first time in history, which led to major offshore projects being unviable. However, the increasing growth of the world, coupled with the artificial supply shortage created by OPEC+ countries, is picking up the prices of crude oil, thus, making offshore drilling more profitable. This may aid in the growth of the market. Factors such as improved viability of deepwater and ultra-deepwater projects are likely to drive the offshore drilling market during the forecast period. However, the volatility in crude oil is expected to restrain the growth of the offshore drilling market in the coming years.
Key Highlights
The deepwater and ultra-deepwater segment is expected to witness significant development due to the increasing technological innovation and the rising viability of such operations.
Middle-East and Africa is expected to be one of the potential markets, with most of the demand coming from Nigeria, Angola, and Egypt.
Offshore Drilling Market Trends
Deepwater and Ultra-deepwater Segment to Dominate the Market
From 2014 to 2019, global deepwater expenditure increased.
In the southern hemisphere, a new exploration permit was awarded in April 2019 by the Argentine government to the consortium formed by ExxonMobil and Qatar Petroleum for exploration in Malvinas Oeste Basin. Moreover, 13 companies offered approximately USD 995 million for exploration licenses of areas within the Austral, Argentina Norte, and Malvinas Oeste basins. All three basins are offshore, combining a total tendered area of more than 200,000 sq. km.
In 2019, Argentina’s neighboring country, Brazil, held its sixth successful oil and gas bid round in just over a year and awarded all four blocks in the prospective pre-salt area for BRL 6.82 billion. The latest investment and upcoming projects in deepwater are likely to drive the growth of the deepwater drilling market during the forecast period in the South American region.
Moreover, the recent waves of cost reductions and critical technological breakthroughs have enabled many oil and gas exploration and production companies to expand their portfolio of sustainable deepwater developments.
Therefore, with the increase in deepwater activities and the technology breakthrough, the deepwater segment may grow during the forecast period.
Middle-East and Africa to Witness a Significant Growth
Many countries in Middle-East and Africa have a large-scale offshore reserve of oil and gas. The world’s largest gas field, the South Pars Gas Complex in the Persian Gulf, and the new discoveries of oil and gas reserves in the eastern Mediterranean sea are all expected to aid the growth of the market.
The Angolan offshore is among the most prospective plays in Africa and continues to draw high levels of investment. Drilling results are broadly positive, with exploration yielding several high-impact discoveries in recent years. In January 2020, Eni started the production at the Agogo-1 deepwater field and won exploration rights to Block 28 in the Namibe Basin, while Total, active in Angola for more than 60 years, was awarded Block 29.
On the flipside, with Angola’s most prospective acreage in the deepwater, ultra-deepwater, and pre-salt areas, exploration can be characterized as high-risk and high-reward. The bulk of drilling is expected to continue to target deepwater and pre-salt prospects, spearheaded by industry giants, such as Chevron, BP, Eni, Exxon Mobil, Statoil, and Total, along with the national oil company, Sonangol.
Nigeria holds the top position among the ten countries, with the largest remaining crude oil and condensate deepwater reserves. The majority of reserves are along the country’s Niger River Delta and offshore in the Bight of Benin, the Gulf of Guinea, and the Bight of Bonny. Exploration activities are mostly focused on the deep and ultra-deep offshore, although some onshore exploration is also taking place.
Production of oil in the country decreased, by 1.9%, to 33.6 million metric ton, in 2019, from 34.2 million metric ton, in 2018. The consumption of oil in the country decreased, by 1.7%, to 34.7 million metric ton, in 2019, from 35.3 million metric ton, in 2018. The decrease in production and consumption is expected to restrain the growth of the market.
Therefore, factors, such as upcoming offshore E&P activities, especially in the West African region, are expected to boost the number of offshore drilling in the region in the coming years.
Offshore Drilling Industry Overview
The offshore drilling market is partially fragmented. Some of the key players in the market include Baker Hughes Company, Haliburton Company, Schlumberger Limited, Transocean Limited, and Saipem SpA.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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