MENA oil drilling spend could hit $27bn by 2014
Douglas-Westwood highlights Iraq as major growth area in region
A report by leading energy research company has said that drilling and workover expenditure in the Middle East and North Africa (MENA) region has the potential to increase to US$27.9 billion by 2014.
The Middle East & North Africa Oilfield Services Market Report 2010-2014 by Douglas-Westwood said that despite the global recession expenditure is still likely to rise by around a third, over $10 billion.
The report also highlighted Iraq as a major growth area in the region as the country finally begins to ramp up production on its vast hydrocarbon reserves. The Gulf state could be producing around 3.9 million barrels of oil per day by 2014.
"We believe that onshore production across the MENA region has the potential to reach 36.5 million bpd by the end of the forecast period assuming investment is maintained,” Rod Westwood, lead market analyst at Douglas-Westwood, said.
"This increase will stem from the re-invigoration of major producing nations and the emergence of other countries looking to accelerate production for both domestic consumption and export.”
“Gas production alone is expected to grow by 50% through to 2014 as it takes a more dominant role in hydrocarbon production within the region," he added.