Challenges and opportunities

Over time, the Middle East has grown into a key market for all suppliers to the energy industry – this has been particularly evident in the last five to ten years as major service providers have relocated their headquarters to this area, often transitioning from western countries. Underpinning the market, local service providers have consistently grown and expanded, becoming significant challengers to their western counterparts.

This mass and breadth of supply is required to service the region which is home to some of the largest energy producers in the world. They are like massive planets circumnavigating gigantic stars, and as is often the case with objects that have a significant mass, their orbits are over a long timescale and can be difficult to change. From the perspective of a service provider, this translates into the ability to supply a very wide range of services in high volume, however, over time it is inevitable that gaps in supply are created and often there is a need for innovation to address a new challenge the end user is facing. The nature of innovation is that the need was not there yesterday, but today it exists – and it quickly becomes an urgent requirement. In the face of this, small and medium enterprises (SMEs) can leverage their agility to accelerate their supply and innovation.

Historically in Saudi Arabia, SMEs and major service providers have successfully collaborated, however, as business models and practices have changed over time, what was once commonplace has become more challenging as these major service companies have grown and the expectations of the end user have shifted, increasing the demand for supplier-owned solutions. It is therefore more effective for an SME to establish a local presence which, with time and persistence, can be very rewarding.

Saudi Arabia has always been a dominating market for the entire energy industry, and in particular completions. The breadth of applications leaves room for even the most niche of suppliers, so for Middle East-headquartered SMEs, supplying a full range of premium upper completion equipment, it is an obvious area of focus.

While specifications can vary, Viking sees demand for its entire range of products in Saudi Arabia. The company has seen the lower bracket become oversaturated with suppliers over the years, but the higher end is less crowded and aligns nicely with Saudi Arabia where higher levels of performance are often sought after due to project requirements.

Packers validated to API 11D1 V0 at pressures from 10 000 psi are commonly required, as are accessories such as API 19AC V0 polished bore assemblies and valves.

Additionally, as an original equipment manufacturer (OEM), the supply of tubing retrievable sub surface safety valves (TRSSSVs) to required specifications is a key differentiator between completion equipment suppliers and it is only possible if the supplier designs, validates, and manufactures their own products to the API 14A standard.

Beyond this, ‘In Kingdom Total Value Add’ (IKTVA) is a major driver in the UAE. Manufacturing in Kingdom is a logical step for a supplier – at Viking, we manufacture and export from the UAE and are locally connected with a well-established supply history to the entire Middle East market.

From navigating the complex regulatory framework to the impact of the ambitious Saudi Vision 2030 roadmap, operating within Saudi Arabia’s energy industry presents a unique set of challenges.

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