This opportunity entails developing the value chain for the production of DV tools to serve the KSA and GCC oil and gas industry.
The overall demand for DV tools in Saudi Arabia has been growing, estimated to be 1,200 units valued at USD 64 million in 2016. Driven by strong oil and gas production outlook, demand is forecasted to increase at an annual growth rate of 2.5% to reach ~1,400 units by 2022. Currently, KSA demand for DV tools is addressed fully through imports, presenting a great opportunity for investors to localize production.
Beyond the KSA market, investors in Saudi have the opportunity to tap into the large regional market in the GCC which is expected to witness strong growth fueled by oil and gas production, expected to increase from 1,300 units valued at USD 133 million in 2017 to 1,400 units by 2022.
In addition to an increasing market demand, Saudi has an attractive cost base including low labor, land, utilities and logistics cost.
The focus of this opportunity is on manufacturing body, elastomer-based seals and components of DV tools in Saudi Arabia. However, additional opportunities with high potential for localization exist across the value chain of DV tools manufacturing. Opportunities across the value chain include:
- Design: establish a DV tool design and R&D office to develop DV tools designs for KSA requirements
- Input materials: partner with local OCTG suppliers to upgrade casing manufacturing capabilities used in fabricating the body
- Production: establish a fabrication shop to manufacture DV tools system components
- Production: establish a lathe/CNC shop to fabricate metal components
- Production: establish local facilities to conduct surface treatment and finishing services
- Testing and Assembly: Assemble and test DV tools prior to use in stage cementing operations
Industrial and Manufacturing
Industrial Equipment & Spare Parts
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
- Opportunity to consider different operating models:
- Joint venture with local player
Contact Our Manufacturing of DV tools Expert
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