Drilling is the key driver of the Russian oilfield services market, as well as its major component, accounting for a 30% share (in monetary terms) when limited to contract drilling and reaching up to 50% when including the range of drilling services supporting conventional and horizontal drilling.

Over the past two-three years, the drilling market has witnessed the development of a number of important trends that will have significant impact on the market players’ strategic decision-making.

• 2015 was a pivotal year for production drilling in Russia. A 4% decrease in drilling footage in 2014 was made up for by а 10% growth in 2015. Horizontal drilling grew by 70% in footage from 2013 to 2015 and firmly established itself as the key driver of growth for the drilling market and the whole range of accompanying oilfield services.

• Horizontal drilling has shown impressive growth over the past three years, reaching 7.4 million meters drilled in 2015 — compared to 1.8 million meters in 2010 — which accounted for a third of the entire volume of production drilling.

• RPI’s outlook for 2016-2020 for the horizontal drilling market shows a slowdown in growth, partially due to deferrals of a number of new oil field development projects, which generate a large part of horizontal drilling demand. By 2020, horizontal drilling is expected to account for 42% of total production drilling footage, while in monetary terms it will become the prevailing segment, as horizontal sections become more extensive and increasingly sophisticated technology is required and applied.

• Conventional drilling has peaked in terms of footage in 2012, followed by a systemic decline in 2013-2015. Footage in 2015 was down by over 10% compared to the 2012 level.

• The outlook to 2020 for conventional drilling projects a decline of footage to about 70% of the 2012 peak level, or to levels of 2008-2009. In monetary terms, the market will grow marginally, barely outpacing inflation. Western Siberia, the region that in 2015 saw a year-on-year production drop of more than 3%, holds the biggest potential for conventional drilling (largely from pads), where it remains the key instrument in the effort to retain production levels.

The Russian Drilling Market report aims to provide a wide range of market players with analytical support required to make timely strategic and operational decisions. For this purpose, we have focused on the following key elements: 

- Key growth factors and trends, both pertaining to Russia's oil and gas industry as a whole, as well as those specific to the drilling market and its main segments.

- Market size estimates for production and exploration drilling by 2025, with horizontal drilling treated separately. This outlook is broken down by every major oil and gas producing region, and factors in particular traits of the drilling market in each region.

-  Analysis of key customers and contractors, including an assessment of drilling capacity (rig fleets) and drilling footage.

The report provides a basis for building estimates for a whole range of oilfield services and equipment segments that relate to drilling, including directional drilling services, cementing and well completions, among other.

The Russian Drilling Market report is the first in a series of reports on the main segments of the country’s oilfield services market. These reports provide an analysis of the current state of the market and an outlook to 2025 for the following segments:

3.1 Oil and gas condensate production by company, 2005-2015

3.2 Oil and gas condensate production by region, 2005-2015

3.3 Outlook for oil and gas condensate production in Russia, 2016-2020

5.1. Drilling footage, 2001-2015 

5.2. Key trends 

5.3. Contracting practice 

6.1. Methodology used for developing forecast

6.2. Production drilling, 2016-2020

6.3. Horizontal drilling, 2016-2020

6.4. Exploration drilling, 2016-2020

8.1. Contractors’ market shares

8.2. Production capacities (rig fleets) of main drilling contractors

8.3. Contractors’ market positions by region

9.1. Independent drilling contractors

9.1.1. Eurasia Drilling Company 

9.1.2. Gazprom Drilling

9.1.3. ERIELL

9.1.4. Integra-Drilling

9.1.5. Targin Drilling

9.1.6. C.A.T.Oil Drilling

9.1.7. KCA Deutag

9.1.8. Nabors Drilling 

9.1.9. NSH Asia Drilling (Neftservisholding)

9.1.10. Investgeoservis

9.1.11. Siberian Service Company (SSK)

9.2. DRILLING DIVISIONS OF OIL COMPANIES

9.2.1. Rosneft’s drilling subsidiaries

9.2.2. Slavneft’s drilling division

9.2.3. Surgutneftegas’ drilling units

9.2.4. Tatburneft’s drilling division