Saudi Arabia Drilling Rigs Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.5 Billion |
| Market Size (2029) | USD 5.69 Billion |
| CAGR (2024 - 2029) | 4.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Drilling Rigs Market Analysis
The Saudi Arabia Drilling Rigs Market size is estimated at USD 4.5 billion in 2024, and is expected to reach USD 5.69 billion by 2029, growing at a CAGR of 4.80% during the forecast period (2024-2029).
- Over the long term, factors such as the growing prominence of gas in power generation, increasing natural gas production, and surging investments in the sector are expected to drive the Saudi Arabian drilling rigs market during the forecast period.
- On the other hand, volatility in crude oil and natural gas prices, leading to a decrease in exploration and production activities, may restrain the growth of the market studied.
- Nevertheless, the development of smart rig technology, like the advancements in automated drilling rigs, is expected to make oil and gas production more viable and may provide an opportunity for market players.
Saudi Arabia Drilling Rigs Market Trends
Onshore Segment to Dominate the Market
- The demand for onshore drilling rigs is directly influenced by the growth in demand for fossil fuels and onshore exploration and production activities. At the same time, well intervention and work-over activities have less effect on the demand for drilling rigs due to other well intervention methods and technologies available.
- Saudi Aramco is driving the increased demand for jack-up rigs in the Middle East as the Saudi state company expands its fleet to help boost production capacity. Therefore, the demand for drilling rings in the onshore region in Saudi Arabia is also expected to be positive during the forecast period.
- The Kingdom is home to the Ghawar field, the world's biggest conventional onshore oil field in terms of reserves and daily output. The oil field has been producing since 1951, and it is estimated to continue pumping oil at its current highest production capacity of 3.8 million barrels a day beyond 2050. Therefore, the country is expected to have a high demand for drilling rigs in the onshore oil and gas operations.
- According to the Baker Hughes statistics, as of November 2023, the total land rig count was about 70 in Saudi Arabia. In the Middle Eastern region, Saudi Arabia is one of the prominent countries with a high number of land rigs.
- Land-based drilling rigs are capable of drilling up to 30,000 feet, and they can be divided into two categories: mobile and conventional. As of 2022, mobile drilling rigs were the most commonly used drilling rigs in the country's onshore region. This is because mobile rigs are easy to relocate to other exploration sites with fewer logistics and financials.
- Therefore, owing to the above points, the onshore segment is expected to dominate the market studied during the forecast period.
Growing Prominence of Gas in Power Generation to Drive the Market
- The majority of the natural gas consumed in Saudi Arabia is for power generation. With a growing focus on having a cleaner environment, the country is planning to achieve the majority of the power generation from gas-fired power plants. Moreover, to cater to the growing demand for electricity, the country plans to install new natural gas power plants.
- In 2022, the electricity generation mix was dominated by natural gas. 270 TWh of electricity was generated from natural gas out of a total of 401 TWh of electricity generation in the country.
- Saudi Aramco is aiming to increase its gas production by 50% by 2030. To support this, the company is carrying out a phased development approach for its USD 100 billion-plus Jafurah project. This is expected to produce up to 2 billion cubic feet per day of gas by 2030. The company also announced that it is weighing options for producing blue hydrogen and liquefied natural gas from its USD 100 billion-plus Jafurah unconventional gas project.
- In May 2023, China’s Sinopec and French supermajor TotalEnergies were in discussion with Saudi Aramco for potential investments in the Saudi Arabian oil giant’s massive Jafurah unconventional gas development.
- Therefore, owing to the above points, the growing prominence of gas in power generation is expected to drive the Saudi Arabian drilling rigs market during the forecast period.
Saudi Arabia Drilling Rigs Industry Overview
The Saudi Arabian drilling rigs market is moderately fragmented. Some major players (in no particular order) include ARO Drilling, Saipem SpA, Arabian Drilling Company, ADES International Holding PLC, and Shelf Drilling Holdings Ltd.
Saudi Arabia Drilling Rigs Market Leaders
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ADES International Holding PLC
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Arabian Drilling Company
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Shelf Drilling Holdings, Ltd.
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ARO Drilling
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Saipem S.p.A.
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Drilling Rigs Market News
- October 2023: KCA Deutag was expected to solidify its global presence after being awarded land drilling contracts with a value of USD 200 million in the Middle East and Latin America. In the Middle East, the company secured two separate five-year extensions for rigs in Saudi Arabia. One rig in Oman obtained a two-year extension, and another was awarded a one-year extension, with options to expand this to three years. These successes follow an announcement made last month for land drilling contract awards worth close to USD 380 million in this region.
- July 2023: Arabian Drilling Co. (ADC) announced the signing of long-term contracts for ten onshore drilling rigs with Saudi Aramco, which is valued at over USD 800 million. The contract duration is five years from the commencement date of drilling operations. ADC will supply ten new onshore drilling rigs with maximum crews to conduct drilling and exploration operations within Aramco's unconventional program.
Saudi Arabia Drilling Rigs Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2028
- 4.3 Crude Oil Production in million barrels per day, till 2022
- 4.4 Natural Gas Production in billion cubic feet, till 2022
- 4.5 Recent Trends and Developments
- 4.6 Government Policies and Regulations
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4.7 Market Dynamics
- 4.7.1 Drivers
- 4.7.1.1 Growing Prominence of Gas in Power Generation
- 4.7.1.2 Increasing Investments in the Sector
- 4.7.2 Restraints
- 4.7.2.1 Volatility of Crude Oil and Natural Gas Prices
- 4.8 Supply Chain Analysis
- 4.9 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Location of Deployment
- 5.1.1 Onshore
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 ARO Drilling
- 6.3.2 Sinopec Zhongyuan Petroleum Engineering Ltd
- 6.3.3 Noble Corporation PLC
- 6.3.4 Saipem SpA
- 6.3.5 Arabian Drilling Company
- 6.3.6 ADES International Holding PLC
- 6.3.7 Shelf Drilling Holdings Ltd
- 6.3.8 Seadrill Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 New Technologies
Saudi Arabia Drilling Rigs Industry Segmentation
A drilling rig is an integrated system that drills wells, such as oil or water wells, or holes for piling and other construction purposes into the earth's subsurface. Major components of the rig include mud tanks, mud pumps, derrick or mast, draworks, rotary table or top drive, drill string, power generation equipment, and auxiliary equipment. Offshore rigs include the same components as onshore but not those of the vessel or drilling platform itself.
The Saudi Arabian drilling rigs market is segmented by location of deployment. By location of deployment the market is segmented as offshore and onshore. The report offers the market size in value terms in USD for all the abovementioned segments.
| Location of Deployment | Onshore |
Saudi Arabia Drilling Rigs Market Research FAQs
How big is the Saudi Arabia Drilling Rigs Market?
The Saudi Arabia Drilling Rigs Market size is expected to reach USD 4.5 billion in 2024 and grow at a CAGR of 4.80% to reach USD 5.69 billion by 2029.
What is the current Saudi Arabia Drilling Rigs Market size?
In 2024, the Saudi Arabia Drilling Rigs Market size is expected to reach USD 4.5 billion.
Who are the key players in Saudi Arabia Drilling Rigs Market?
ADES International Holding PLC, Arabian Drilling Company, Shelf Drilling Holdings, Ltd., ARO Drilling and Saipem S.p.A. are the major companies operating in the Saudi Arabia Drilling Rigs Market.
What years does this Saudi Arabia Drilling Rigs Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Drilling Rigs Market size was estimated at USD 4.28 billion. The report covers the Saudi Arabia Drilling Rigs Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Drilling Rigs Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Drilling Rigs in Saudi Arabia Industry Report
Statistics for the 2024 Drilling Rigs in Saudi Arabia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Drilling Rigs in Saudi Arabia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
