Kuwait Oilfield Services Market Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)

Kuwait Oilfield Services Market Trends

Increase in Offshore Oil & Gas Projects and Related Investments

Kuwait’s strategic push into offshore oil and gas exploration represents a significant shift in the country’s energy landscape, backed by substantial investments and government initiatives. In 2022, the government of Kuwait announced a landmark USD 44 billion investment plan for oil production, exploration, and related projects until 2025, demonstrating its commitment to expanding offshore capabilities. The Kuwait Petroleum Corporation (KPC) has specifically focused on offshore exploration drilling projects, with an ambitious target of having offshore projects contribute 25% to the overall hydrocarbon output. This strategic direction is further reinforced by the commencement of Kuwait’s first offshore drilling rig in 2022, which holds the potential to produce 615,000 barrels of oil per day, primarily aimed at meeting Europe’s increasing energy demands.

The development of offshore projects has gained significant momentum through strategic partnerships and international collaboration. A notable example is the contract between Kuwait Oil Company and Halliburton, where the latter manages offshore services and provides comprehensive drilling services, including wireline, perforating, well-testing, coring, and logistical support. Additionally, Kuwait has partnered with Saudi Arabia to develop the offshore Durra Gas field in the partitioned Neutral Zone, which is projected to produce approximately one billion cubic feet of natural gas and 84,000 barrels of condensates daily. These developments are particularly significant considering Kuwait’s position as a major global oil producer, holding approximately 7% of global oil reserves and maintaining a production capacity of about 3.15 million barrels per day as of 2022. The expansion into offshore projects is crucial for achieving Kuwait’s strategic goal of reaching a production capacity of 4 million barrels per day by 2040, creating sustained demand for oil exploration services and oil and gas support services across various operational aspects.

Segment Analysis: By Service Type

Completion and Production Services Segment in Kuwait Oilfield Services Market

The completion services and production services segment dominates the Kuwait Oilfield Services market, holding approximately 37% market share in 2024. This segment’s prominence is driven by Kuwait’s ambitious plans to increase its oil production capacity to 3.5 million barrels per day by 2025 and 4 million barrels per day by 2040. The segment’s growth is further supported by significant investments in optimizing operational efficiency and increasing production from major oilfields like West Kuwait, South Kuwait, and East Kuwait. The implementation of advanced technologies, including cloud-based subscription services for exploration and production applications and automated work processes, has enhanced the segment’s capabilities. Additionally, the development of offshore projects and the rising demand for well completion services and production technology in offshore wells have contributed to the segment’s market leadership.

Formation Evaluation Segment in Kuwait Oilfield Services Market

The Formation Evaluation segment is emerging as the fastest-growing segment in the Kuwait oilfield services market, with a projected growth rate of approximately 4% during 2024-2029. This robust growth is primarily driven by increasing investments in exploration activities and technological upgrades in data collection and processing techniques. The integration of advanced technologies, such as cloud computing and improved data collection methods, has significantly enhanced the quality of data and productivity of well-logging techniques. The segment’s growth is further supported by Kuwait’s substantial proven reserves of more than 101 billion barrels of crude oil and 1.784 trillion cubic meters of natural gas, which require sophisticated formation evaluation services for efficient extraction and utilization of these hydrocarbon reserves.

Remaining Segments in Kuwait Oilfield Services Market

The other significant segments in the Kuwait Oilfield Services market include drilling services, Drilling and Completion Fluids, Drilling Waste Management Services, and Other Services. The drilling services segment plays a crucial role in both onshore and offshore operations, particularly with Kuwait’s recent expansion into offshore drilling activities. The Drilling and Completion Fluids segment is essential for successful well completion, with water-based muds being preferred due to their cost-effectiveness and environmental friendliness. The Drilling Waste Management Services segment has gained importance due to increasing environmental consciousness and regulatory requirements. Other Services, including seismic data acquisition and offshore support services, continue to support the overall market growth through specialized technical offerings.

Segment Analysis: Location of Deployment

Onshore Segment in Kuwait Oilfield Services Market

The onshore segment dominates the Kuwait oilfield services market, accounting for approximately 93% of the total market share in 2024. This dominance is primarily attributed to Kuwait’s extensive onshore oil and gas infrastructure, including major producing areas like north Kuwait, west Kuwait, and southeast Kuwait. The Greater Burgan field, which is the world’s second-largest oilfield, remains a crucial contributor to Kuwait’s onshore production capabilities, sustaining an output of about 1.6 million barrels per day through advanced gas injection and water flooding techniques. The Kuwait Oil Company’s ambitious plans to boost production and significant investments in onshore field development continue to drive the segment’s growth. The company’s focus on developing fields such as Bahra in North Kuwait and implementing enhanced oil recovery techniques in mature fields demonstrates the ongoing importance of onshore operations. Additionally, the substantial investment of USD 44 billion allocated for oil production, exploration, and other projects until 2025 primarily targets onshore developments, further solidifying this segment’s market leadership.

Offshore Segment in Kuwait Oilfield Services Market

The offshore segment is emerging as the fastest-growing sector in Kuwait’s oilfield services market, driven by the country’s strategic push to diversify its production capabilities beyond onshore fields. Kuwait’s first offshore drilling campaign, initiated with advanced drilling services and offshore logistical support, marks a significant milestone in the country’s oil and gas industry development. The segment’s growth is further accelerated by collaborative projects such as the development of the Durra offshore gas field in partnership with Saudi Arabia, which aims to produce approximately one billion cubic feet of natural gas and 84,000 barrels of condensates daily. The Kuwait Petroleum Corporation’s strategic vision includes offshore production contributing up to 25% of the overall output, supported by extensive exploration activities and infrastructure development. This ambitious expansion into offshore operations, coupled with technological advancements and international partnerships, positions the segment for substantial growth in the forecast period from 2024 to 2029.