Introduction
The report analyses the regional offshore drilling market in the Africa and Middle East region providing historic drilling and spending trends in the period 2005 to 2009 and forecast trends over the period 2010 to 2014. The report discusses key drilling events in each country of the region including a synthesis of shallow versus deep water spending and exploratory versus development spending.
Scope
*Insight on the drilling services market and its evolution in the current market environment from both an operational and expenditure perspective.
*Forecasts of the number of wells to be drilled and the likely level of expenditure required to fulfil predicted levels of activity
*An overview of drilling equipment and processes and a description of how the associated technologies are costed and allocated to various well types.
*Analysis of individual offshore areas and their role in the future growth of the drilling sector and rig market.
Highlights
Global offshore drilling activity will be fully recovered by 2011. It will stabilise in 2010, will return to growth in 2011 and will grow rapidly in the subsequent two years.
A rounded total of 1,430 wells were drilled offshore the Middle East from 2005 to 2009, with 98% in the Gulf, almost all of which were development wells. Around 2,000 exploratory and development wells are forecast over the next five years.
"Over the last five years it is estimated that nearly 2,500 shallow water wells were drilled in the region. Meanwhile around 1,150 deep
water wells were drilled. Over the next five years it is forecast that around 3,170 shallow water wells will be drilled accompanied by around 1,310 deep water wells."
Reasons to Purchase
*Develop a drilling investment strategy targeted around Exploration and Production hotspots.
*Evaluate likely technology driven growth opportunities created by the medium term evolution of the drilling sector.
*Analyse how drilling spending patterns will vary between different technology sectors and geographies over a five-year forecast period.
Table of Contents :
OVERVIEW 1
Catalyst 1
Content summary 1
Methodology 2
Offshore well definitions 2
Deep water definitions 2
Forecasting drilling numbers 3
Expenditure modeling 3
Segmentation 4
EXECUTIVE SUMMARY 5
Introduction 5
Results and conclusions 6
Drilling 6
Spending 7
TABLE OF CONTENTS 9
TABLE OF FIGURES 9
TABLE OF TABLES 9
THE TOOLS OF OFFSHORE DRILLING 10
Foundations of drilling 10
Early drilling 10
Introduction of rotary drilling 12
The move offshore 13
Introduction of purpose-built offshore rigs 15
The offshore drilling rig 16
Platform rigs and tenders 17
Barges and submersibles 20
Jackups 21
Drillships 23
Semisubmersibles 25
Deep water drilling 26
Deep water rig features 28
The current rig market 28
Current global well numbers 30
REVIEW OF DRILLING TECHNOLOGY 31
Introduction 31
Exploration wells 31
Appraisal wells 32
Development wells 33
Injection development wells 34
Horizontal and extended-reach development wells 35
Multilateral development wells 36
Slimhole development wells 37
Re-entry development wells 37
Rotary drilling procedures 38
Risers 40
Rotary drilling mechanics 41
Power 43
Hoisting 43
Rotating 43
Circulating 44
Well control 45
Measurement 46
Well depth 46
Horizon depth 47
Total depth 47
Services: rigs 47
Mobilization and installation 49
Services: geoscience 50
Mud logging services 51
Detection of hydrocarbons 53
Coring services 54
Downhole logging services 54
Log types 55
Services: engineering 56
Site and location surveys 57
Drilling fluids and waste management 58
Water-based muds 59
Oil and synthetic-based muds 59
Other fluids 60
Waste management 61
The bit program 61
Directional drilling 63
Monitoring- and logging-while-drilling 64
Top drives 65
Casing and cementing 66
Casing procedure 67
Fixing casing 68
Other materials and contingent services 69
Mechanical failure 70
Well control 70
Near-surface instability 72
Lost circulation and salt 73
Unwanted gases 74
Hazardous climatic conditions 74
Well testing 75
Perforating 75
Drillstem testing 76
Fracturing and acidizing 76
Repeat formation testing 77
Leaving the well 77
Services: support 78
Transport 79
Financial and miscellaneous support 79
DRILLING IN AFRICA AND THE MIDDLE EAST 83
Africa Introduction 83
North and Northwest Africa 85
Egypt 85
Libya and Tunisia 86
Other North and Northwest Africa 86
West Africa 88
Côte d'Ivoire 88
Ghana, Benin and Togo 89
Nigeria and São Tome and Principe 89
Cameroon 90
Equatorial Guinea 90
Gabon and the Congos 91
Angola and Namibia 91
South and East Africa 92
South Africa 92
Other South and East Africa 93
The Middle East introduction 94
Iran 95
Kuwait 96
Saudi Arabia 96
Qatar and Bahrain 97
United Arab Emirates 97
Other Middle East 98
Regional Drilling Summary 99
Shallow versus deep drilling summary 100
Exploratory versus development drilling summary 101
SPENDING IN AFRICA AND THE MIDDLE EAST 103
Introduction 103
The spending model 104
Service cost movements 106
Rig days 108
Africa 109
The Middle East 111
Regional Spending Summary 114
Shallow versus deep spending summary 116
Exploratory versus development spending summary 118
INNOVATIONS IN DRILLING 120
Introduction 120
Evolving drilling techniques 120
The longer-term future 139
Conclusion 143
APPENDIX 144
Industry abbreviations 144
Data sources 153
Conventions used 153
Ask the analyst 153
Datamonitor consulting 153
Disclaimer 154
List of Tables
Table 1: OFFSHORE DRILLING: Africa/ Middle East well drilling forecast by region to 2014 99
Table 2: OFFSHORE DRILLING: Africa/Middle East well drilling, comparison by water depth to 2014 100
Table 3: OFFSHORE DRILLING: Africa/Middle East well drilling, comparison by well type to 2014 101
Table 4: OFFSHORE DRILLING: Africa/Middle East spending forecast to 2014 114
Table 5: OFFSHORE DRILLING: Africa/Middle East well type and water depth spending forecast to 2014 115
Table 6: OFFSHORE DRILLING: Africa/Middle East well drilling, comparison by water depth to 2014 116
Table 7: OFFSHORE DRILLING: Africa/Middle East well spending, comparison by well type to 2014 118
List of Figures
Figure 1: OFFSHORE DRILLING: Africa and Middle East drilling numbers 1995 to 2014 6
Figure 2: OFFSHORE DRILLING: Africa and Middle East spending numbers in report period 8
Figure 3: Reconstruction of the Drake well in Titusville, Pennsylvania 11
Figure 4: Drake engine (background) and drill string/casing (foreground) 12
Figure 5: An early rotary drilling rig 13
Figure 6: Lake Caddo, site of the first well over water 14
Figure 7: OFFSHORE DRILLING: rig shares in the market in 2009 16
Figure 8: Pair of rigs on the Hibernia concrete platform 17
Figure 9: Drilling tender alongside a tension leg platform (TLP) 20
Figure 10: Drilling barge on Lake Erie 21
Figure 11: The Galaxy I cantilever jackup, built 1991 22
Figure 12: The Glomar Jack Ryan drillship, built in 2000 23
Figure 13: The deck and derrick of a drillship 24
Figure 14: The Transocean Marianas, built in 1998 25
Figure 15: The riser above sea level in a semisubmersible 26
Figure 16: OFFSHORE DRILLING: Drilling in increased water depths 27
Figure 17: OFFSHORE DRILLING: Forecast shares of new rig deliveries to 2014 29
Figure 18: OFFSHORE DRILLING: Rig market dynamics 30
Figure 19: The substructure and derrick of an old semisubmersible rig 39
Figure 20: Diagram of a drilling riser 40
Figure 21: A kelly in a kelly bushing in the drill floor, drilling ahead 43
Figure 22: Shale-shakers on a drillship 45
Figure 23: Drilling hands on the drill floor in a non-automated environment 48
Figure 24: A helicopter leaving a helideck mounted at the stern of a drillship 49
Figure 25: A typical mud log screen shot 52
Figure 26: Tri-cone milled, TCI and black diamond PDC bits 62
Figure 27: LWD tool behind the bit 64
Figure 28: Hydraulic top drive 66
Figure 29: Typical casing program in a medium-depth well 67
Figure 30: Diagram of production casing 68
Figure 31: A blowout preventer stack 71
Figure 32: A horse-drawn explosives cart used in the 19th century 77
Figure 33: A workboat operating with a semisubmersible 79
Figure 34: OFFSHORE DRILLING: Notional cost breakdown for an exploration license 80
Figure 35: OFFSHORE DRILLING: Hypothetical cash flow for a development drilling project 81
Figure 36: OFFSHORE DRILLING: Africa well share in 2009 83
Figure 37: OFFSHORE DRILLING: Africa well drilling forecast to 2014 84
Figure 38: OFFSHORE DRILLING: North & Northwest Africa well drilling forecast to 2014 85
Figure 39: OFFSHORE DRILLING: West Africa well drilling forecast to 2014 88
Figure 40: OFFSHORE DRILLING: South and East Africa well drilling forecast to 2014 92
Figure 41: OFFSHORE DRILLING: Middle East well share in 2009 94
Figure 42: OFFSHORE DRILLING: Middle East well drilling forecast to 2014 95
Figure 43: OFFSHORE DRILLING: Africa/Middle East well share by water depth in 2009 99
Figure 44: OFFSHORE DRILLING: Africa/Middle East well drilling, comparison by water depth to 2014 101
Figure 45: OFFSHORE DRILLING: Africa/Middle East well drilling, comparison by well type to 2014 102
Figure 46: OFFSHORE DRILLING: Global sector spending shares in 2009 103
Figure 47: OFFSHORE DRILLING: Global sector spending forecast to 2014 104
Figure 48: OFFSHORE DRILLING: Price movement dynamics 106
Figure 49: OFFSHORE DRILLING: Global sector spending, comparison wells and spends 108
Figure 50: OFFSHORE DRILLING: Africa spending share in 2009 110
Figure 51: OFFSHORE DRILLING: Africa spending forecast to 2014 111
Figure 52: OFFSHORE DRILLING: Middle East spending share in 2009 112
Figure 53: OFFSHORE DRILLING: Middle East spending forecast to 2014 113
Figure 54: OFFSHORE DRILLING: Africa/Middle East well type and water depth spending forecast to 2014 115
Figure 55: OFFSHORE DRILLING: Africa/Middle East well spending, comparison by water depth to 2014 117
Figure 56: OFFSHORE DRILLING: Africa/Middle East well spending, comparison by well type to 2014 119
Figure 57: Diagram of the benefits of underbalanced drilling 121
Figure 58: A rotating control head 123
Figure 59: Dual gradient drilling with control head and subsea pump system 125
Figure 60: Riser-less drilling on the D/V Chikyu research vessel 128
Figure 61: Hybrid coiled tubing drilling rig, onshore Canada 130
Figure 62: Continuous circulation system 132
Figure 63: Casing drilling rig with top drive 134
Figure 64: Processes in installing expandable casing 136
Figure 65: Artist's impression of artificial buoyant seabed 139
Figure 66: Conceptual seabed drilling rig 141
0 items in cart
