Market Trends of Nigeria Wireline Logging Services Industry
This section covers the major market trends shaping the Nigeria Wireline Logging Services Market according to our research experts:
E-Line Segment to Dominate the Market
- In 2018, the E-line segment accounted for the maximum share in the wireline logging services market and is expected to continue its dominance during the forecast period as well in Nigeria.
- Electrical line (E-line) is a cable that is utilized to lower the tools and transmit data to the surface and to the tools deployed. An e-line can perform the slickline job and can also help to evaluate (log) the formation when the data must be sent to the surface.
- E-lines consists of single strands or multi-strands. E-Line is a more value-added deployment method, as it covers both requirements, i.e. it can intervene on a mechanical level and collect data about well conditions too.
- The market for E-Line wireline logging services in Nigeria has been growing, owing to there being a higher number of old wells (conventional) that require intervention and monitoring. In addition, a number of downhole tools that were previously deployed by coiled tubing can now be deployed using E-Line, which is more cost-effective.
- Owing to the above-mentioned properties, the demand for e-line wireline logging services has been growing over the forecast period.
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Investments in Oil and Gas Industry and Supportive Government Policies to Drive the Market
- Nigeria is one of Africa's biggest economies and among the most populous in Africa. The country is relatively politically stable when compared to other African Nations.
- In 2018, China National Offshore Oil Corporation (CNOOC) announced its plan to increase investments in the Nigerian oil and gas sector, especially its offshore investments, to about USD 17 billion. Out of that USD 17 billion, CNOOC would invest USD 3 billion in its existing portfolio in the country's offshore oil and gas operations.
- According to the National Bureau of Statistics, the Foreign investment inflow into Nigeria's oil and gas industry rose by 259% to reach USD 85.62 million in the first quarter of 2018. Moreover, the offshore industry has witnessed increased investment leading to an increase in average offshore rig count in the past few years in Nigeria.
- Further, the Nigerian National Petroleum Corporation (NNPC) is also taking steps to attract massive investments in the nation's oil and gas industry. Hence, with increased investment from foreign players and government initiatives, the wireline logging services industry is expected to witness significant demand during the forecast period.
