Report Description

Asia-Pacific oilfield services market is anticipated to grow at a steady pace during the forecast period, 2024-2028 owing to the  rise in the demand for cutting-edge technology, tools, and equipment to improve the efficiency of exploration and production activities in onshore and offshore locations.

Oilfield service (OFS), which mostly affects offshore assets, is essential to the upstream service of the oil and gas sector. All goods and services needed for the production and exploration process in the upstream industry are included in the oilfield equipment and services category. The companies in this sector provide manufacturing, maintenance, and equipment repair services for the production, transportation, and storage of oil. Additionally, locating energy sources, drilling and formation evaluation, managing energy data, geological sciences, and many other services are taken into account for successful field operations.

Increasing Oil & Gas Investments

By 2050, the demand for 38.8 million b/d of oil products is anticipated to increase in the Asia Pacific region. The region's rapid expansion, notably in countries such as India, China, Indonesia, and Japan, can be attributed for the rise in the demand for oil-related items. For instance, over the next ten years, India intends to nearly quadruple its oil refining capacity to 450 MT to fulfil the growing demand for domestic fuel. India had 23 refineries as of April 2022, with a total capacity of about 251.2 MMTPA, 19 of which were public, 3 private, and 1 joint venture. Refinery capacity utilization during 2020–21 is 88.8%. Indian Oil Corporation (IOC) is the largest refinery in the nation with an 80.6 MMTPA capacity. Over 70% of the total Indian refining output  was supplied by the top three firms, IOC, Bharat Petroleum Corporation (BPCL), and Reliance Industries (RIL), at a CAGR of 3.2% for refining capacity from 2011–12 to 2020–21. In addition, between 2021 and 2022, 254.3 MMT of petroleum products were produced in India, representing a steady increase in both production and consumption and will continue during the forecast period..

Additionally, Petronas signed two contracts in December 2021 relating to upstream investment in Malaysia. A memorandum of understanding (MoU) was reached with Petroleum Sarawak Berhad (PETROS) regarding a gradual increase in Sarawak's gas supplies, eventually increasing the allotment to 1.2 billion cubic feet per day. Another one is a business arrangement to expand Sabah's oil and gas sector with the state government of Sabah. The number of activities in the area has increased as a result of several offshore drilling projects in Australia, Malaysia, and Indonesia, further promoting the demand for oilfield services. Thus, it is anticipated that increased exploration of unconventional resources, new investments in the oil and gas sector, and the stability of crude oil prices will boost the demand for oilfield services in the Asia-Pacific region during the forecast period.