Oil and gas spending benefits service companies
NOCs in the region have maintained investment in oil and gas projects despite the fall in oil prices
Steady spending from National Oil Companies (NOCs) in the Middle East and North Africa is propping up oilfield service companies operating in the region.
Despite the fall in oil prices, which caused a number of oil majors to cut their budgets and look at ways to make savings, NOCs in the region have showed no signs of scaling back spending.
Continued investment in oil and gas projects has helped fuel growth in olfield service providers with operations in the region, which have in turn started to recover from the losses they suffered in Q4 of 2014 and the beginning of this year as a result of the drop in oil price.
Oil operators are continuously looking at ways to improve their operations, which has spurred investment in technology that enables them to do that.
"We have got a low oil price environment at the moment. That in effect helped Petrotechnics in a way because we are looking to help organisations streamline their processes and make their operations more efficient," said Stuart Douglas, regional sales manager of Petrotechnics.
"We find that in a low oil price environment companies are looking in ways to maximise on their profit, make sure their operations are more streamlined. Operational excellence is something that’s high on the agenda of many oil operating companies in the Middle East and beyond."