Key Mena Producers See Drilling Activity Slump

12 Jun 2020 Issue: 63 / 24 By: James Cockayne

Whilst global services companies see Gulf upstream spending as relatively resilient among a sea of global cutbacks, the region is proving far from immune to the slump in global upstream activity.

*Saudi Arabia is not only far and away the Mena number one in terms of oil output, it has also long been top in terms of drilling activity. However latest Baker Hughes data show that the country’s number of active rigs targeting oil fell six to an average of 53 for May, the lowest level since 2013. The number of gas rigs was also down one at 51 (see chart 1).

*Even more than Saudi Arabia, Abu Dhabi has been bullish that it will push on with upstream investment, in a bid to expand capacity from 4mn b/d to 5mn b/d by 2030. However the latest rig count numbers indicate a pause in activity from recent record levels with the number of active oil rigs falling by seven to 52 for May. Rigs targeting gas fell from three to one, for a total rig count some 15 below on the record high of 68 rigs hit in October 2019 (see chart 2). (CONTINUED - 395 WORDS)