Land drilling rig demand in the MENA region is forecast to rise to 680 rigs from 2025-2029. (Image source: Westwood)

Land drilling rig demand in the MENA region is forecast to rise to 680 rigs from 2025-2029, a 31% increase over 2020-2024, according to the latest edition of Westwood’s World Land Drilling Rig Market Forecast

Along with increased conventional oil drilling in places such as Algeria, Kuwait and Turkey, new opportunities are emerging in unconventional developments, led by projects in Saudi Arabia, such as the Jafurah unconventional gas development, and the United Arab Emirates.

Global land drilling demand set to rise

The report presents Westwood’s in-depth outlook for the global land drilling rig market over the 2025-2029 period, with global land drilling rig demand forecast to increase by 18% over the next five years compared to 2020-2024. It presents a broadly positive picture for the land rig market over the next five years, with continued strong activity in several key regions, including Asia, the Middle East and North America.

Rig demand is forecast to average 4,704 between 2025 and 2029, an increase of 18% on the previous five-year period. Global demand is forecast to be led by Asia Pacific (36%), with China continuing to be the largest country for rig demand. Eastern Europe, where demand is driven by Russia, follows at 27%, with North America third at 17%.

While North America has the largest fleet, this is chronically underutilised, with many rigs being cold stacked for multiple years. Operator consolidation, strict capital discipline and a drive to increase the production rate of each well drilled have fundamentally changed the US rig market, according to the report, meaning supply significantly outpaces demand. As a result, utilisation is expected to average just 33%, significantly below Asia Pacific (76%) and Eastern Europe & FSU (63%). This low utilisation is also expected to encourage rig contractors to relocate part of their fleets into other markets, a growing trend in the last couple of years.

72% of forecast rig demand is expected to come from just four countries: Canada, China, Russia and the USA, but they offer limited expansion opportunities. Westwood’s latest report identifies a number of countries offering major growth opportunities – including several that are progressing unconventional developments, offering an opportunity for rig contractors to relocate idled rigs in the USA into new markets. These markets include Argentina and Australia, along with the MENA region.

The new company will focus initially on Egypt.

XRG, ADNOC’s energy investment company, and bp, have established a new regional gas platform, Arcius Energy, which will initially focus on gas development in Egypt

Arcius Energy will focus on natural gas growth to meet growing regional demand, while supporting Egyptian energy security and economic development. It includes the Shorouk concession (bp 10% interest), which contains the producing Zohr field; North Damietta concession (bp 100% interest), which contains the producing Atoll field; and North El Tabya, Bellatrix-Seti East and North El Fayrouz exploration concession agreements.

Arcius Energy is 51% owned by bp and 49% by XRG and will be headed by Naser Saif Al Yafei, from ADNOC, who was appointed as chief executive officer while Katerina Papalexandri, from bp, was appointed as chief financial officer.

Exciting new chapter

H.E. Dr. Sultan Ahmed Al Jaber, executive chairman of XRG said, “The formation of Arcius Energy marks an exciting new chapter in our long-standing partnership with bp, and fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand. This progressive partnership will unlock a lower-carbon transition fuel to build a future where smarter, cleaner and more affordable energy is accessible for Egypt and the world."

Murray Auchincloss, chief executive of bp, added, “Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region. Together, we can continue to build on bp’s 60 years of technical expertise and delivery of safe and efficient operations in Egypt – a hub for new opportunities to build out a highly competitive gas portfolio in the region.”

 bp, along with its partners, currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.

QatarEnergy has expanded its stakes in offshore Namibia blocks. (Image source: QatarEnergy)

QatarEnergy is expanding its international upstream footprint with the acquisition of additional interests in Namibia

QatarEnergy has signed an agreement with TotalEnergies to acquire an additional 5.25% interest in block 2913B (PEL 56) and an additional 4.695% interest in block 2912 (PEL 91), in the Orange Basin, offshore Namibia.

Subject to customary approvals, QatarEnergy’s participating interests in both licenses will increase to 35.25% in block 2913B and 33.025% in block 2912. TotalEnergies (the operator) will hold 45.25% in block 2913B and 42.475% in block 2912. The two blocks are located around 300 km offshore Namibia, in water depths ranging from 2,600 to 3,800 m.

The other partners in the two licenses are Impact Oil & Gas, holding 9.5% in each of the two licenses and the National Petroleum Corporation of Namibia “NAMCOR”, which holds10% in block 2913B and 15% in block 2912.

His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the president and CEO of QatarEnergy, said, “We are pleased to expand QatarEnergy’s footprint in Namibia’s upstream sector. This agreement marks another important step in working collaboratively with our partners towards the development of the Venus discovery located on block 2913B.”

The A1-96/3 well is located around 35 km from the Wafa field. (Image source: Adobe Stock)

Eni and BP have resumed their exploration activities in Libya after halting drilling operations in the onshore region in 2014, according to Libya’s National Oil Corporation (NOC)

This follows the formal revocation of force majeure status by Eni and NOC in August 2023 on exploration areas A&B (onshore) and C (offshore), where Eni is operator with 42.5% along with bp (42.5%) and Libya Investment Authority (15%), as a result of a favourable security assessment. Some of these areas are close to the Wafa gas facilities that export production to Italy.

On October 26, Eni began its exploration activities in the Area B (96/3) of Ghadames Basin, where the first exploratory well, A1-96/3 (Hasheem Prospect), was drilled. This well is the first under the contractual obligations for Area B in Ghadames Basin, according to the Fourth Bid Round Contract of 2007. Mellitah Oil & Gas, which has extensive experience in the region, particularly in developing and managing the Wafa field, is overseeing the drilling operations and all related activities for this well.

Several promising geological formations in the A1-96/3 well are set to be tested, which are expected to contain both oil and gas. The well is projected to reach a final depth of approximately 3,147 m.
The A1-96/3 well is located around 35 km from the Wafa field and approximately 650 km from the capital, Tripoli.

Eni is the leading international gas producer in Libya, where it has been operating since 1959, and currently has a large portfolio of assets in exploration, production and development. Production activities are operated through the joint venture company Mellitah Oil and Gas BV (Eni 50%, NOC 50%).

Repsol and OMV are also set to restart operations sin the Murzuq Basin and Sirte Basin respectively, NOC says.