GCC Rental Workover Rig Market

GCC Rental Workover Rig Market Size

The GCC rental workover rig market was estimated at USD 138.6 million in 2024 and is estimated to reach the value of USD 270.1 million by 2034, growing at a CAGR of 7.1% from 2025 to 2034. Advanced technology in rig operations is one of the main factors that shape the rental workover rig market in the Gulf Cooperation Council (GCC) region. An example is the deployment of smart workover rigs, as mentioned in Saudi Aramco’s 2023 Sustainability Report which demonstrates the industry’s shift toward high-performance, technology-enabled assets.

The growing energy demand within the GCC is encouraging countries to increase their production capacities, heightening the requirement for workover rigs. These units play a pivotal role in both well maintenance and new projects. Saudi Aramco's 2023 decision to increase oil production capacity to 12 million barrels per day reflects this effort, directly increasing the demand for rental workover rigs to facilitate brownfield rejuvenation and greenfield growth.

Large-scale investments upstream by GCC governments are promoting the demand for rental rigs, which provide a more responsive and capital-light solution. ADNOC's 2023–2030 strategy features a USD 150 billion commitment to growth in upstream operations. Under this investment, rental rigs feature as a central component by offering the flexibility to scale up operations while aligning with national energy security objectives and minimizing the financial exposure.

Most of the country's mature oilfields need to be constantly worked over and intervened upon in order to maintain output levels, necessitating rental workover rigs as an operational imperative. QatarEnergy's 2024 USD 6 billion production-boosting initiative from the Al Shaheen field—one of the largest in the country—indicates the ongoing dependency on such rigs to ensure production efficiency. These efforts are crucial in utilising the well effectively and maximize the production in order to meet the global demands.

GCC oil producers are increasingly using rig rentals as a strategic method for managing capital within an uncertain market climate. Rig renting reduces upfront costs but retains capacity for operation, supporting broader cost-containment strategies. ADNOC Drilling's build-out of its 2024 fleet, including rental units in offshore projects, complements this. It indicates a trend towards more fiscally prudent models in large-scale enterprises.

GCC Rental Workover Rig Market Trends

• The GCC market is experiencing a transition to online platforms for workover rig rentals, procuring in an efficient manner. Saudi Aramco's 2024 digital transformation report underscores its utilization of e-platforms for equipment rental, improving efficiency. This development indicates a human desire for ease, enabling operators to access rigs rapidly, lower downtime, and respond to project requirements in real time.
  
• In the GCC, offshore exploration is accelerating the need for specialized rental workover rigs. This shift is marked by the 2024 announcement by ADNOC for expanding offshore activities in Upper Zakum field. Workers on these projects depend upon rental firms to provide sophisticated equipment suitable for extreme sea conditions.
  
• An ecological shift is driving rig rentals, particularly in regards to the operation’s carbon footprint. QatarEnergy’s latest sustainability report discusses the company’s new operational strategy of implementing low-emission rigs for the expansion of the North Field. This seems to follow a broader pattern of the GCC nations shifting towards an equilibrium between their energy demands and environmental preservation that has begun to influence rental selection as companies adopt greener technologies.
  
• For project based work, short-term rig rentals are becoming more popular. In their 2024 report, ADNOC Drilling highlighted short-term lease offerings for onshore projects to cater to demand fluctuations. This demonstrates a rational approach for the companies and workers to eschew long-term contracts, where equipment utilization is sought for only during active phases, and instead implemented during operational phases.
  
• The ability to remotely monitor rental rigs is enhancing operational oversight. Saudi Aramco’s 2023 technology update includes the deployment of rigs with real-time data transmission systems for well interventions. This innovation enables remote control of rig operations, which improves safety and efficiency; it is becoming more common in the GCC rental market.
  

GCC Rental Workover Rig Market Analysis

Learn more about the key segments shaping this market

Download Free PDF

• Based on capacity, the industry is segmented in low, medium and high capcity. The global market for GCC rental workover rig was valued at USD 121.2 million, USD 132.1 million and USD 138.6 million in 2022, 2023 and 2024 respectively. The medium capcity workover rigs witness a substantial share in 2024 and is projected to grow at a CAGR of over 6% till 2034.
  
• Low capacity workover rigs are being adopted substantially across the GCC, thereby driving the technology growth at a CAGR of over 5.5% till 2034. Demand for low-capacity rental rigs is on the rise as operators target cost-effective shallow well maintenance, especially in mature fields. These rigs provide small operators with a realistic solution to maximize production without the capitalization of equipment ownership, while fostering the expansion of the light-duty rig rental market.
  
• Medium capacity rigs are increasingly gaining popularity within the GCC as they can easily fit into a range of production environments. Such rigs possess medium-level cost models that are suited for mid-cap projects. More and more are being resorted to in the rental market since OpEx expense in the field rises without significant capital outlay. This is a demand-driven shift towards more efficient operational solutions in flexible working environments.
  
• Demand for high-horsepower rigs is rising as operators seek technically challenging, deep-well drilling to access greater reserves. Such rigs ensure the power and resilience required for high-production operations, so they are a critical component of aggressive development schemes. Rentals within the category are increasing as companies look for leading-edge capability without capital outlays. The move reflects the need for responsiveness and access to high-quality equipment in addressing the region's growing energy needs.

Learn more about the key segments shaping this market

Download Free PDF

• In the GCC rental workover rig market, application-based trends show varied momentum across well intervention and maintenance, Enhanced Oil Recovery (EOR) operations and abandonment and decommissioning. The well intervention and maintenance application held 46.1% of market share in 2024 and is anticipated to grow over a CAGR of over 6% by the year 2034.
  
• A key growth driver for rental workover rigs across well intervention and maintenance application is the rising demand for maintaining aging oilfields to sustain production. Operators in the GCC are investing in workover rigs to address declining outputs. For instance, Saudi Aramco’s 2024 initiative to enhance well productivity in the Ghawar field underscores this need, pushing rental rig demand as companies prioritize cost-effective maintenance over new drilling.
  
• The push for maximizing hydrocarbon recovery from mature reservoirs drives EOR growth. GCC nations are adopting advanced techniques like CO2 injection, increasing rig utilization. Bahrain’s 2023 Tatweer Petroleum project, expanding EOR in the Bahrain Field, exemplifies this trend, boosting rental workover rig demand to support complex recovery processes efficiently.
  
• Stricter environmental regulations are driving growth in abandonment activities across the GCC. As oil producers shift focus from expansion to sustainability, rental workover rigs are increasingly needed for well closures. For instance, Saudi Aramco’s 2024 decision to suspend multiple offshore rig contracts, reflects a pivot from capacity growth to decommissioning, boosting demand for rigs to safely plug wells.

Looking for region specific data?

Download Free PDF

• The Saudi Arabia GCC rental workover rig market experienced significant growth in 2022, 2023 and 2024 and was valued at USD 41 million, USD 43.9 million and USD 45.9 million respectively. The market is estimated to grow at a CAGR of over 6.5% between 2025 and 2034.
  
• Bahrain's focus on augmenting oil production from mature fields is the primary sustainment pillar for the rental workover rigs market across the country. The Initiative to increase output with enhanced techniques is fueling the workover rig demand, while simultaneously providing a long-term energy solution and meeting internal needs. The drive demonstrates a strategic attempt to optimize the use of resources, guaranteeing economic stability as the nation adopts changing energy requirements with trustworthy rig support.
  
• Kuwait’s investments in infrastructure to support oilfield optimization are driving growth. Upgrades to existing facilities are pushing the need for rental rigs to maintain production levels efficiently and ensure long-term operational stability. This initiative underscores Kuwait's efforts to modernize the country's oil sector by innovatively utilizing technology to maintain production levels and fulfill domestic and international market demands with high rig utilization.
  
• Oman's development of gas extraction projects is driving market growth. The country’s energy diversification goals are being supported through increased rental activity as new projects are requiring specialized rigs to higher operational demands. This strategic move is aimed at shifting the international gas market towards Oman’s influence, relying on workover rigs to improve the extraction of gas and provide in the region’s energy needs.
  
• The recent surge in Qatar’s LNG export targets is a major incentive. The planned addition as part of the North Field expansion to 126 million tons per annum by 2027 is spurring demand for workover rigs to aid production on servicing global energy requirements. This particular objective bolsters Qatar’s global leadership in LNG where rental rigs are used to sustain and increase production as mandated globally.
  
• The move from Saudi Arabia towards maximizing the value of their existing reserves signifies growth. To maintain crude oil production at 9 million barrels per day by 2025, rental rigs will be essential for routine and enhancement servicing to provide reliable production. This emphasis is a demonstration of Saudi Aramco's commitment to resource optimization, with the use of sophisticated rig solutions to maintain its status as an oil leader in the global arena under changing GCC rental workover rig market conditions.
  
• The UAE’s enhanced recovery techniques to extend field life are driving demand. The implementation of techniques to develop an extra 1 billion barrels of recoverable oil, under ADNOC's plan, is driving more dependence on workover rigs to enhance efficiency and sustainability. This strategy emphasizes the UAE's pioneering energy vision, employing rental rigs to maximize production while aligning with environmental objectives and securing long-term economic dividends.
  

GCC Rental Workover Rig Market Share

The top 5 companies in the GCC rental workover rig industry include SLB, Halliburton, ADNOC Drilling Company, and Al Mansoori Workover Services, which collectively held a market share of above 40% in the year 2024. Their advanced operational footholds within the region are consolidated through technology implementation, strategic partnerships, and dominant operational presence. SLB and Halliburton's global coverage enables them to perform high-performance workover solutions in deep and complex wells in the major production areas of the GCC.

ADNOC Drilling is enjoying its direct alignment with the upstream expansion plan of the UAE, with long-term contracts and regular rig utilization. Al Mansoori Workover Services, with its specialized fleet and regional experience, is a preferred operator among national oil companies. The operators capitalize on investments in digital technology and automated rig solutions systems which enhances operations safety, efficiency, and reduces operational downtime. Their rapid growth potential, coupled with current financial resources, also enable them to effectively eliminate competition from smaller regional operators and further strengthen market dominance.

GCC Rental Workover Rig Market Companies

• Abraj Energy Services remains one of the leaders of the rental workover rig market in the GCC. This is evident by their operational competence with a fleet of 5 workover units and 27 drilling rigs which secured a high utilization for workover rigs in Oman. Their competitive edge is maintained with the solid Oman market and with near-zero available supplied capacity in the market. Their company's new Kuwait venture of two rigs in 2024 only reinforces their expansion
  
• Nabors Industries strengthens its GCC rental workover rig market presence, through its 50/50 joint venture with Saudi Aramco, Namely SANAD, which primarily focuses on rig operations, which further announced to expand its rig count to over 50 in the next 10 years. This notable fleet expansion highlights Nabors' commitment to supporting Qatar's energy objectives, further enabling efficient and innovative drilling solutions throughout the area.
  
• Baker Hughes holds a significant position in the GCC rental workover rig market due to its high rig count in the area. Furthermore, innovative collaborations including ADIPEC 2024 LNG Technology Collaboration further establish its reputation for providing unique, sustainable oilfield services that cater to specific regional needs.
  
• National Drilling Company is a market-leading company with a variety of drilling and workover rigs in operation throughout the region. Such a fleet underpins a variety of projects, such as decommissioning, in keeping with ADNOC's sustainability agenda, and reinforcing its position as a valued partner to regional oil and gas operators.
  

Key companies operating in GCC rental workover rig market include:

• Abraj Energy Services
• ADNOC Drilling Company
• Advanced Energy Systems
• Al Mansoori Workover Services
• Alshawamikh Oil Services
• Baker Hughes
• Challenger
• China Oilfield Services
• CNPC Bohai Drilling Engineering Company
• Dalma Energy
• Daqing Saudi Arabia
• Elite Drilling Company
• ERIELL
• Gitco
• Gulf Drilling
• Gulf Energy
• Halliburton
• Ingeo Drilling Company
• John Energy
• Kuwait Drilling Company
• MB Petroleum Services
• MSE Group
• Nabors Industries
• National Drilling Company
• NDSC
• NPS Bahrain for Oil and Gas Wells Services
• Nortech
• NOV
• Ocean Oilfield Drilling
• PNG Drilling & Service
• Rukun Al Yaqeen (RAY) International
• Saudi Arabian Oil
• Sinopec International Petroleum Services Corporation
• SLB
• Tarabut
• Westex/WLP Well Service
  

GCC Rental Workover Rig Industry News

• In October 2024, ADNOC Drilling signed a significant onshore contract valued at approximately USD 1.1 billion with Abu Dhabi National Oil Company (ADNOC) to provide drilling, workover and other well services for the 2022-2025 period. The agreement covers Onshore drilling activities, with an objective to support ADNOC's oil production capacity. This deal is intended to help meet ADNOC's strategic plan of increasing capacity and maximizing the efficiency of its operations. This partnership demonstrates the dedication of ADNOC Drilling to deliver quality services with the support for the UAE oil industry.
  
• In January 2024, Halliburton launched Reservoir Xaminer software that tests wirelessly to enhance property evaluations. This system employs advanced technologies to capture data and give it in real time which helps enhance operative decision making while exploring oil and gas. Some features of Reservoir Xaminer include the ability to test extreme environments and capture quality formation samples which reduces cost and time. This signaled Halliburton's launch of new offerings tailored towards increasing productivity and efficiency focused solutions for energy sector customers.
  
• In May 2021 SLB joined hands with NOV in a strategic partnership targeting solutions for challenges in the energy industry. The partnership will merge digital technology supplied by SLB with state-of-the-art equipment and services by NOV to assist in enhancing safety and efficiency during drilling activities. Development of process integration systems geared towards improved resource utilization and simplified problem-solving will be addressed by the partnership. This reflects the dedication of the two firms to advancing environmental sustainability in oil and gas operations.
  
• In May 2024, Baker Hughes achieved a significant milestone with the expansion of its facility in Dammam, Saudi Arabia, which will enhance the company's manufacturing capabilities and increase local job opportunities. This state-of-the-art facility will focus on producing advanced technologies for the oil and gas industry, aligning with Saudi Arabia's Vision 2030 objectives. The expansion is expected to bolster Baker Hughes' presence in the region and facilitate innovation in energy solutions. This development is part of Baker Hughes' broader strategy to strengthen its operational footprint in the Middle East.
  

This GCC rental workover rig market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Type

• Conventional/conventional double
• Light/single service rigs
• Heavy/double service rigs

Market, By Capacity

• Low
• Medium
• High

Market, By Application

• Well intervention and maintenance
• Enhanced oil recovery (EOR) operations
• Abandonment and decommissioning

The above information has been provided for the following countries:

• Bahrain
• Kuwait
• Oman
• Qatar
• Saudi Arabia
• UAE