This opportunity entails establishing precision machining workshops for downhole equipment and tools to serve the KSA and GCC oil and gas industry.
From 16 downhole tools and equipment, over 40 components utilize precision machining in their manufacturing process. Precision machining requirements include boring, honing, CNC Lathe, CNC Mill, and Threading precision/CNC machining technology. Currently, precision machining for downhole equipment and tools is performed fully outside KSA, presenting a great opportunity for investors to localize production.
The overall demand for precision machining for downhole tools in KSA has been growing, estimated at USD 78 Mn in 2016. Driven by the upstream oil and gas activity in the region, the demand is forecasted to further increase at an annual growth rate of ~4.7% to reach USD 108 Mn by 2022.
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 USD 91 Mn in 2017 to USD 112 Mn by 2022.
Thank you for contacting us!
We have received your message and we will contact you soon.