Subsurface INVESTMENT OPPORTUNITY: Coiled-tubing operations and basic tools
Executive summary There is potential to establish local capabilities for coiled-tubing operations and basic tools (including supply and maintenance of equipment). Currently, the demand for coiled-tubing operations is estimated at QAR 50-90M/yr, with 70-140 days of activity each year. Supported by new well-drilling and planned coiled-tubing campaigns for 2021-23, demand is expected to increase to QAR 270-300M during these years. Currently, there is the opportunity for a local player to establish itself as a Qatari OFSE company, either independently or as a JV with an international player. Tailored terms and conditions and support for low-cost logistics, labor, and utilities for a local supplier could be provided. 2
Detailed opportunity description Coiled-tubing operations and basic tools Coiled tubing is used for interventions in oil and gas wells, and its main benefit is the ability to pump fluids and chemicals into wells. Currently, coiled tubing is only provided by major international service providers because it \requires significant investment in equipment. A local player could be supported in its journey to becoming a preferred supplier to the oil and gas industry. Onshore coiled tubing unit in operation Localization opportunity Business scope Ownership, onshore transport, and operations of onshore and offshore coiled-tubing units (power supply, control panel, tubing reel, injector head, stripper assembly, BOPs) Installation of coiled-tubing units onto existing well, platform, or rig equipment, including ESD control panels, wellhead BOP installation, connection of power supply, etc. Basic coiled-tubing tools and activities, such as pumping, milling, setting and un-setting of packers, bridge plugs, etc. Out of scope Specialized tools and activities, such as ESPs, through-tubing drilling, running completions Operation of specialized tools and connections/adapters to the coiled- tubing unit Capital intensity Low (QAR 0-10M) Medium (QAR 10-50M) High (QAR 50M+) 3
Market size Estimated spend (Qatar only) on coiled-tubing operations, QAR M Historic Forecast 270 300 290 50 50 50 50 80 90 50 50 2013 14 15 16 17 18 19 20 21 22 2023 Estimated duration of coiled-tubing activity, days 70 70 70 80 120 140 70 70 390 430 420 Key highlights Since 2013, demand for coiled-tubing operations and basic tools has been relatively stable at QAR 50-90M/yr. On top of a projected, stable base demand of approximately QAR 50M/yr, additional coiled- tubing campaigns are expected to start from 2021 and onward, potentially generating an additional QAR 200-250M/yr in 2021-23. The availability of additional jack-up barges in Qatari waters could add more coiled-tubing campaigns. Currently, coiled-tubing services are provided by international companies, which have established bases in Qatar; however, room in the market exists for a small local supplier to establish itself and expand its capabilities. Relevant stakeholders (2018) Top 3 buyers Other demand TOP 3 BUYERS : 4
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