This opportunity entails localizing the entire value chain for drilling muds to serve the KSA and Middle Eastern markets.
Drilling muds consumption in KSA and the Middle East is expected to increase significantly over the next couple of years driven mainly by the increased well activity and increased production (~20% increase expected across the Middle East).
The overall consumption for drilling muds in the Middle East is expected to increase from 387 KTPA in 2018 to 557 KTPA in 2025.
- KSA market: Local consumption is expected to increase from 123 KTPA in 2018 to 156 KTPA in 2025, leading to an increase in market size from 423 M USD in 2018 to 618 M USD in 2025.
- Rest of the Middle East: Local consumption is expected to increase from 264 KTPA in 2018 to 401 KTPA in 2025, leading to an increase in market size from 912 M USD in 2018 to 1,591 M USD in 2025.
In addition, several raw material used in drilling mud production are readily available in KSA including sodium & calcium chloride, processed barite, anionic polyelectrolytes and calcium carbonate.
The increase in local and regional demand for drilling muds and the limited presence of local players coupled with the Governments push for localization presents a great opportunity for the private sector to invest in establishing blending facilities for drilling muds in Saudi Arabia.
Beyond the facilities for drilling muds, other opportunities exist across the value chain including:
- Establishing production facilities for key input materials (e.g., PAC, guar gum, premium lubricants and cross linking agents)
- Providing transportation services and storage & loading equipment (e.g., conveyor units and jumbo bags)
- Providing disposal services for stimulation chemicals
- Providing inspection, maintenance and after sales services
To be determined by the investor
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Open to starting the project as soon as possible
- Pure private sector model
- Joint venture with local player
Contact Our Facilities for drilling muds Expert
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