Nigeria Wireline Service Market Key Companies and SWOT Analysis by 2031

The Nigeria wireline service market size is projected to reach US$ 292.31 million by 2031 from US$ 189.11 million in 2023. The market is expected to register a CAGR of 5.6% during 2023–2031. The development of high-quality wireline products is likely to remain among the key trends in the market.

Nigeria Wireline Service Market Analysis

The Government of Nigeria has already issued three executive orders for the oil & gas industry that came into effect in February 2024. This includes Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; Presidential Directive on Local Content Compliance Requirements, 2024; and the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines. This is further expected to make the petroleum sector in Nigeria one of the most competitive sectors worldwide. Further, according to the data released by the US Energy Information Association (EIA), crude oil sales across the country are likely to reach ~US$ 29 billion in 2024. This shows a rise in demand for domestic consumption and international exports, which further boosts the demand for wireline services across the country.

Nigeria is among the world’s largest oil producers; however, the revenue generation from this sector fails to eradicate poverty in the country due to increasing oil theft and corruption. As a result, various companies in the country are focusing on shifting their production process to offshore locations. For instance, in 2018, Royal Dutch Shell reduced onshore oil production and sold a few of its onshore assets to avoid theft, corruption, spills, and unrest that have adversely affected the country's onshore sector for decades.

Nigeria is significantly focusing on conducting oil production activities in offshore locations. In order to support this, the government and several oil and gas operators are making substantial investments in new technologies to generate better production results. In addition, the necessity of transferring drilling and production facilities to offshore locations, along with the consequent difficulties in setting up a plant capable of enduring specific environmental conditions, has resulted in the construction of state-of-the-art and innovative offshore research and engineering centers in the country. Thus, the Nigeria’s significant focus on oil production activities may offer promising opportunities for Nigeria wireline service market

Nigeria Wireline Service Market Overview

The growing oil & gas exploration and production and a rising number of drilling activities are major driving factors for the Nigeria wireline services market. In addition, an increase in initiatives toward well maintenance is anticipated to support the Nigeria wireline services market growth.

The Nigeria wireline services market ecosystem comprises of following stakeholders—raw material suppliers/distributors, hardware assemblies/wireline manufacturers, and end users. A few popular manufacturers are Baker Hughes Incorporated, Halliburton Company, Weatherford International PLC, and Pioneer Energy Services Corp., among others. The first process in the ecosystem of the Nigeria wireline service market is the production and manufacturing of iron and steel. The manufactured parts are then assembled by the oilfield service providers to form wireline systems, which are sent for testing. This stage is followed by the supply of wireline systems to the oilfield operator companies. In addition, almost all the wire-line equipment is manufactured by third parties. The end users of the wireline services are various oil fields, gas fields, and municipal organizations.

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Nigeria Wireline Service Market: Strategic Insights

Nigeria Wireline Service Market

• Market Size 2023
  US$ 189.11 Million
• Market Size 2031
  US$ 292.31 Million

Market Dynamics

GROWTH DRIVERS

• Rising shift from onshore to offshore rigs
• Growing demand for well intervention

FUTURE TRENDS

• Development of high-quality wireline products

OPPORTUNITIES

• Government initiatives for commercialization of oil & gas sector in Nigeria

Regional Overview

• Nigeria

Market Segmentation

Type

• Slickline
• Electric Line

Application

• Onshore
• Offshore

Hole Type

• Open Hole
• Case Hole

Service Type

• Well Completion
• Well Intervention
• Well Logging

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Nigeria Wireline Service Market Drivers and Opportunities

Rising Shift from Onshore to Offshore Rigs

In Nigeria, oil and gas operators who have their respective onshore rigs are focusing on shifting their respective operations from onshore to offshore platforms. A few companies such as Exxon Mobil, Shell, TotalEnergies, and Eni have announced to shift their operations from onshore oil locations in Nigeria due to the rising number of theft and sabotage cases in the onshore oil and gas production facilities. In February 2024, Nigerian National Petroleum Co Ltd (NNPC) shut down its Awoba field due to evacuation issues and crude oil theft incidents. Also, there is a growing number of offshore oil and gas production drilling operations at deepwater locations. A few companies have recently established their respective facilities in deepwater locations for oil and gas production. For instance, after facing security-related challenges, Nigerian National Petroleum Co Ltd (NNPC) restarted its operations in April 2024 from the offshore Madu field with an average of 8,000 barrels per day; it was expected to reach an average production of 12,000 barrels per day by the end of May 2024. Similarly, in February 2024, TotalEnergies, along with its partners, also announced the start of production of oil and gas in the Akpo West field on the PML2 license in Nigeria. Thus, the rising shift from onshore to offshore rigs drives the Nigeria wireline service market.

Rise in Divestment in Onshore Oil Fields and Oil Discovery in Offshore Fields

The Nigerian government is taking several initiatives to boost the participation of third parties in its oil & gas sector. As per the Nigerian Gas Master Plan, the government continues to attract investment in natural gas and other gas-based industries. The plan also includes a wide-ranging gas infrastructure development program that focuses on attracting new investments in the country’s gas processing, pipelines, and petrochemical facilities.

Nigeria Wireline Service Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Nigeria wireline service market analysis are type, hole type, service type  and application.

• Based on type, the Nigeria wireline service market is bifurcated into slickline and electric line. The electric line segment held a larger market share in 2023.
• In terms of application, the wireline service market is bifurcated into onshore and offshore. The offshore segment dominated the market in 2023.
• Based on hole type, the Nigeria wireline service market is divided into open hole and cased hole. The case hole segment held a larger share of the market in 2023.
• By service type, the Nigeria wireline service market is divided into well completion, well intervention, and well logging. The well logging segment dominated the market in 2023.

Nigeria Wireline Service Market Share Analysis by Geography

The geographic scope of the Nigeria wireline service market report offers a detailed country analysis.

Nigeria is the largest oil and gas producer in Africa. Two types of crude oil are obtained from the Niger Delta basin: light, medium, and comparatively stable with ~36° API gravity, while the other more massive crudes have 20°–25° API gravity. They are paraffinic and show low sulfur content. Since 1936, Shell has been operating in Nigeria and currently dominates gas output in the country, and the Niger Delta also houses most of Shell's hydrocarbon reserves. Other natural resources in Nigeria, apart from petroleum, include natural gas, gold, iron ore, coal, calcareous, niobium, lead, zinc, and arable land.

Nigeria Wireline Service Market Report Scope

Nigeria Wireline Service Market News and Recent Developments

The Nigeria wireline service market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Nigeria wireline service market are listed below:

• NexTier Oilfield Services, Inc. sold its Well Support Services Basic Energy Services Inc. for US$93.7 million. With this deal, the company aims to create incremental annual savings of US$6 million in selling, general, and administrative expenses and eliminate about US$20 million of annual capital expenditures. Also, the company is focusing on its two business segments: the completions services segment—which consists of hydraulic fracturing, wireline, and pumpdown services—and the well construction and intervention services segment, consisting of coiled tubing and cementing services. (Source: NexTier Oilfield Services, Inc., Press Release, March 2020)

Nigeria Wireline Service Market Report Coverage and Deliverables

The “Nigeria Wireline Service Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Nigeria wireline service market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Nigeria wireline service market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Nigeria wireline service market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Nigeria wireline service market
• Detailed company profiles