Nigeria Wireline Service Market is expected to reach US$ 292.31 Million by 2031

Growing Demand for Well Intervention Bolsters Nigeria Wireline Service Market Growth

According to our latest study on "Nigeria Wireline Service Market Analysis to 2031 – Country Analysis – by Type, Application, Hole Type, and Service Type," the market was valued at US$ 189.11 million in 2023 and is projected to reach US$ 292.31 million by 2031; it is anticipated to record a CAGR of 5.6% from 2023 to 2031. Apart from growth drivers, the report covers the Nigeria wireline service market trends and their foreseeable impact during the forecast period.

A few of the past incidents in the production facilities have generated the awareness of periodic cleaning of pipelines and wells among the oil and gas companies. This is further fueling the demand for well intervention operations, driving the adoption of wireline services among the end users. Further, the vendors that are planning to shift their operation from Nigeria to other locations due to various theft and sabotage cases in onshore drilling have also requested approval for the same from the Nigerian authorities. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has also offered these companies a short-term option for their quick approval of leaving the locations if these companies are willing to clean the spills and facilities and provide compensation for communities. This factor is further generating the demand for cleaning operations of their respective production facilities, thereby boosting the well intervention operations. Thus, the growing demand for well intervention fuels the Nigeria wireline service market growth.  

Nigeria Wireline Service Market Share — by Region, 2022

Source: The Insight Partners Analysis

Based on type, the Nigeria wireline service market is bifurcated into slickline and electric line. The electric line segment held a larger Nigeria wireline service market share in 2023. In terms of application, the wireline service market is bifurcated into onshore and offshore. The offshore segment held a larger share of 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 segmented into well completion, well intervention, and well logging. The well logging segment held the largest share of the market in 2023.

Wireline is one of the approaches to deploy numerous downhole tools into the wells. A cable on a reel on the surface is utilized to lower the tools to the wellbore. Wireline facilitates many downhole operations to be conducted cost-effectively and efficiently under live well conditions. Further, improvements in production processes, maintenance requirements, and the increase in cable diameters have guaranteed augmented reliability and performance of wirelines despite expanding well depths, pressures, and temperatures. Slickline is the standard cable wire utilized for lowering tools downhole and/or retrieving tools and equipment. This type of wireline is robust and relatively simple during operations while being less expensive compared to the electric line type. The various equipment needed to conduct slickline operations includes alloy/stainless steel wireline; winch unit capable of withstanding 25,000 ft. of wire; well control panel; pressure control equipment; diesel/electric power pack; and tool house (including downhole tools and running equipment). Slickline is used for running, setting, and recovering various tools, packers, plugs, and valves to the well-bore to perform repair work; surveillance (temperature/pressure surveys and downhole camera diagnostics); isolation (plugging off hydrocarbon or gas zones and water zones to prepare well for workover); and manipulation work (opening sliding sleeve assemblies, cutting and removing wax buildup, and clearing blockages).

Casing cutters are primarily used in fishing operations in the oil & gas industry to cut and chamfer the external casing conductor as part of wellhead completion before installing the blowout preventer (BOP). The casing cutter also leverages a portable pneumatic or hydraulic-powered machine tool for its operations. Majorly, the casing cutters are used for the internal cutting of single or multiple strings of casing, well abandonment, and drillpipe cutting operations. Baker Hughes, National Oilwell Varco, and Archer Ltd. are a few of the prime companies that offer casing cutters for oil and gas fishing activities. For instance, Archer Ltd offers casing cutters that are hydraulically actuated tubular cutting tools for cutting a wide scale of single and various tubing and casing strings.

Wireline service is used for oil and gas exploration activities with the objective of optimizing efficiency and avoiding any capital waste through building proper information with respect to the capacity of the oil field. The electric line type can capture real-time data from tubing inspections, reservoir monitoring, and cement bond logs to further provide better depth control. An electric Line (E-line) is a cable that is utilized for lowering the tools and transmitting data to the surface as well as tools that are deployed. E-line is most commonly utilized in activities such as well logging, perforating, and well surveillance. It also offers a power conduit for the deployment of tractors to acquire real-time data where tools have to access high-angle wells. In addition, this power conduit permits the manipulation of electrically operated tools downhole. Various types of equipment are required to conduct electric line operations such as mono conductor cable, winch unit, well control panel, grease injection pump unit, pressure control equipment (comprising grease injection head, lubricator, and riser), logging/data center for storing and analyzing data during operations, and tool house. E-line type is utilized for several applications but predominantly well-logging activities such as open-hole logging, cased hole logging, perforating, setting explosive devices, and drilling support services. Thus, E-line is considered to be a more value-added deployment technique, as it covers both requirements: intervening on a mechanical level and collecting data about the well conditions.

The scope of the Nigeria wireline service market report focuses on Nigeria. In Africa, Nigeria holds the largest number of natural gas reserves. Although the oil & gas sector contributes less than 10% to the country’s GDP, it offers ~65% of the government revenue and approximately 88% of country’s foreign exchange earnings. According to the data released by OPEC (Organisation of Petroleum Exporting Countries), revenue generated from the sales of crude oil in Nigeria amounted to ~11 billion in the first five months of 2023. 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 contributes to the growing Nigeria wireline service market size.

A few of the major oil & gas operators in Nigeria are Total SA, Royal Dutch Shell, ExxonMobil, Chevron, and Sterling Exploration, among others. Strategic initiatives by the government, as well as the presence of leading operators in the oil & gas industry, are fueling the growth of the oil & gas industry in the country. For instance, Chevron Nigeria Limited, an operator of NNPC/CNL Joint Venture, invited prequalified and interested companies for tender opportunities for the Provision of Wireline Logging Services to support drilling, workovers, and completions for JV Operations in Nigeria during 2020–2022. Similarly, in 2024, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that Nigeria had been offered 12 oil blocks in a new licensing round. Further, in 2023, the Nigerian Oil Ministry announced that the award of licenses for seven offshore blocks offered in a 2022 licensing round will also be done with the 2024 year’s licensing round, wherein currently, the combined licenses of 19 oil blocks have been reserved for the capable FDI investors. Such policies are anticipated to boost the demand for oil production, which is expected to generate new opportunities for the growth of the Nigeria wireline service market size in the coming years. 

Geoplex, Schlumberger NV, SGS SA, Superior Energy Services Inc, Energy Quest Oilfield Services, Samtex Oilfield Services Nigeria Limited, Greatwall Technology Nigeria Limited, Oildata Wireline Services Ltd., Melvon Nigeria Limited, and B G Technical Limited are among the key players profiled in the Nigeria wireline service market report. Companies in the Nigeria wireline service market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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