Maritime Strategies International (MSI) has revised its projections for jackup drilling demand in the Middle East Gulf region downward following Saudi Aramco’s decision to suspend contracts for more than 20 jackups.
The analyst now anticipates a modest growth rate of 1%, down from a previous estimate of 4%. This adjustment primarily reflects ongoing operational activities in Qatar and the UAE aimed at meeting their respective oil and gas production targets.
MSI has also adjusted its forecast for charter rate growth for standard jackups, reducing expectations by approximately 4%. In response to the suspensions, several rigs will be stacked in Saudi Arabia to minimize operational expenses and prepare for future deployment once operations resume.
Despite these challenges, general offshore activity in the Middle Eastern Gulf remains robust. MSI highlighted significant developments, including Saipem securing contracts totaling $700 million in Saudi Arabia. These contracts involve critical infrastructure projects such as the replacement of offshore lines at the Berri and Manifa oilfields and the installation of a major trunkline at the Abu Safah oilfield.
In the UAE, ADNOC has awarded NMDC Energies an Engineering, Procurement, Construction, and Installation (EPCI) contract for water injection pipelines and platform modifications supporting the Lower Zakum development.
Furthermore, Iran’s Oil Ministry has allocated $20 billion in contracts for the construction of 28 new platforms and the installation of 56 compressors at the South Pars gas field in the Persian Gulf. These contracts have been awarded to local Iranian entities including Petropars, OIEC, Khatam Al Anbiya Construction, and Mapna Group, signaling continued investment in offshore infrastructure despite regional challenges.
The adjustments made by MSI reflect the cautious optimism prevailing in the Middle Eastern offshore sector amid ongoing operational adjustments and strategic project developments.
