2017 Oil & Gas Servicing Industry Report

Overview of the Report

The considerable decline in crude oil prices has put a significant damper on the demand for the goods and services of the Oil & Gas Servicing Industry from major exploration and production projects. International oil companies have put significant investments on hold across the globe due to uncertainty in the market and reduced profitability of operations. The rise in militant activities has also contributed to the reduced activities in the Oil & Gas Servicing Industry with many indigenous upstream companies that have been actively developing assets having to deal with disruptions due to attacks on facilities in addition to the lower crude oil prices.

The Nigerian Oil & Gas Servicing Industry has great potential to develop but this is highly dependent on the development of the country’s oil & gas upstream industry from where demand for servicing is derived.

The drop in crude oil prices and re-emergence of militancy in the Niger Delta have contributed to the poor financial condition of a large number of indigenous servicing companies with many reporting losses.

  • The report provides a comprehensive overview of the Nigerian Oil & Gas Servicing Industry including the market structure and size of the various segments
  • The report examines the market potential for the provision of goods and services to exploration and production companies in Nigeria
  • The report outlines the current market, regulatory, structural, financial and technical challenges faced by indigenous operators in the Nigerian Oil & Gas Servicing Industry
  • The report provides an overview of the current challenges faced globally by exploration and production companies and the consequent impact on the Oil & Gas Servicing Industry
  • The report assesses the competitive landscape, strengths, weaknesses, opportunities and threats as well as the key success factors and major risks inherent in the Industry. A section on Industry Economics takes a detailed look at profitability, cost structure, cash flow, and terms of trade, leverage and financing structure.

Questions your report answers

  • Indigenous oil and gas servicing companies are estimated to account for up to 20% of goods and services the Industry provides to exploration and production companies in the country.
  • We expect the demand for oil & gas servicing to begin to recover towards in the medium term as crude oil prices remain relatively low and global exploration and production companies divert resources to lower cost producing regions such as Nigeria.

Target Users

We believe the information, analyses and opinions contained in this industry report would prove indispensable to;

  • Bankers who wish to assess the credit worthiness of the Industry players
  • Industry participants
  • Analysts, investors and other users of financial information who require a good understanding of the Industry
  • Regulators and policy makers seeking to understand contemporary issues in the industry