AUSTRALIAWIRELINE LOGGINGSERVICES MARKET

Market Shares, Forecasts& Trends

2014 - 2020

mordorintelligence.com

Australia Wireline Logging Services Market | Sample

TABLE OF CONTENTS

1. Introduction 1

1.1 Report Guidance 2

1.2 Markets Covered 3

1.3 Key Points Noted 4

2. Executive Summary 5

3. Market Overview 6

3.1 Introduction 6

3.2 Recent Developments in Wireline Logging Services 7

3.3 R & D Activities 8

3.4 Investments and Opportunities 10

4. Drivers, Constraints and Opportunities 12

4.1 Drivers 12

4.1.1 Increasing Energy Demand 12

4.1.2 Shale Boom 13

4.1.3 Increasing Exploration Activity 14

4.1.4 High Demand for Logging 15

4.2 Constraints 16

Australia Wireline Logging Services Market | Sample

4.2.1 Environmental Issues 16

4.2.2 Lack of Skilled Labor 17

4.2.3 Constitutional Barriers 18

4.3 Opportunities 19

4.3.1 Investment Opportunities in Wireline Logging Services Market 19

4.3.2 Increasing Drilling Activity Across the Globe 20

5. Wireline Logging Services Value Chain Analysis 21

5.1 Overview 21

5.2 Equipment Manufacturers 23

5.3 Service Providers 24

5.4 Operators 25

6. Australia Wireline Logging Services Market Analysis, by Type 27

6.1 Introduction 27

6.2 Open-Hole 28

6.2.1 Market Definition 29

6.2.2 Market Analysis and Forecasts 30

6.3 Cased-Hole 35

6.3.1 Market Definition 35

6.3.2 Market Analysis and Forecasts 36

Australia Wireline Logging Services Market | Sample

7. Australia Wireline Logging Services Market Analysis, by Wireline Type 41

7.1 Introduction 41

7.2 E-Line 42

7.2.1 Market Definition 43

7.2.2 Market Analysis and Forecasts 44

7.3 Slick-Line 49

7.3.1 Market Definition 49

7.3.2 Market Analysis and Forecasts 50

8. Competition 56

8.1 Overview 56

8.2 Market Share of Key Companies, by Geography 57

8.3 Market Share of Key Companies, by Equipment 60

9. Key Company Analysis 64

9.1 Baker Hughes Inc 64

9.2 Schlumberger Limited 69

9.3 Halliburton Company 75

9.4 Nabors Industries Ltd 79

9.5 Weatherford International 81

Australia Wireline Logging Services Market | Sample

9.6 Superior Energy Services, Inc 86

9.7 OilServ 88

9.8 National Drilling Company 90

9.9 RECON Petrotechnologies Ltd 92

9.10 Pioneer Energy Services 95

10. Competitive Landscape 97

10.1 Deal Summary 97

10.1.1 Acquisition 98

10.1.2 Private Equity 99

10.1.3 Equity Offerings 100

10.1.4 Debt Offerings 101

10.1.5 Partnerships 102

10.1.6 Asset Transactions 103

10.2 Recent Developments 104

10.2.1 New Technology Inventions 104

10.2.2 New Contract Announcements 105

11. Appendix 106

11.1 Sources 106

11.2 Abbreviations 107

Australia Wireline Logging Services Market | Sample

11.3 Market Definition 108

11.3.1 Methodology 109

11.3.2 Coverage 110

11.3.3 Secondary Research 111

11.3.4 Primary Research 112

11.3.5 Expert Panel Validation 113

11.4 Contact Us 114

11.5 Disclaimer 115

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4. DRIVERS, CONTRAINTS AND OPPORTUNITIES

4.1 DRIVERS

4.1.3 INCREASING EXPLORATION ACTIVITY

Exploration is one of the core activities of the oil and gas industry globally. Although there have been

some difficulties with operating in tougher environmental conditions in deeper waters in some regions,

spending on exploration activities in Australia has been on the rise over the past five years. While total

spending on property acquisition continued to fluctuate. Total upstream spending by top companies in

Australia is relatively flat in the last five years, compared to strong growth shown between 1995 and

2005.

The dramatic increase in drilling activity across Australia between 1990 and 2000 has boosted country’s

economy and job growth significantly. Oil companies are not only eager to drill onshore/offshore fields

but also enthusiastic about creating jobs and bringing more oil to the world. This will help lower the oil

and gas prices. Increased offshore investment and production would support hundreds of new jobs and

provide billions of dollars in new wages and tax revenues.

Upstream expenditures for oil and gas production can be divided into three categories: Property

acquisition, exploration & development, and production. exploration and development includes

expenditures related to searching and developing the facilities and infrastructure to produce reserves.

Production includes costs associated with extracting oil and natural gas from the ground once the field

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has been developed. Property acquisition includes costs incurred to purchase proved and unproved oil

and natural gas reserves.

Acquisition expenditures may fluctuate, spiking when there are large mergers and acquisitions. For

example, after ExxonMobil’s acquisition of XTO in 2010, acquisition expenditures had surged to very

high levels and later it declined by 2013.

Flat oil prices, decreasing reserves, increasing energy demand are encouraging oil and gas companies

to invest more in exploration and production activities thereby boosting the wireline logging services

demand in the country.

However, with the number of exploration wells being spudded decreasing since the past decade, the

Wireline logging services market in the country is expected to witness fluctuations in market demand in

the next decade. Mordor Intelligence estimates, that the decreasing exploration activity in Australia is

expected to be compensated to some extent by increasing drilling activity in terms of water depths, both

in onshore unconventional wells and offshore wells. This extensive drilling activity is expected to reduce

the fluctuations gap in market demand.

Australia Wireline Logging Services Market | Sample 27 | Mordor Intelligence

6 AUSTRALIA WIRELINE LOGGING SERVICES MARKET ANALYSIS

The recent growth in Australia’s energy consumption has been lower than the average of the last five

years at 2% compared to 2.7% but still the energy consumption has been increasing. The primary energy

consumption in Australia in 2013-14 was Petroleum which accounted for 62% of the total energy

consumption. The consumption of petroleum is estimated to increase to 80% by 2049-50.

Table 7: Production of Petroleum Liquids by State (in million barrels)

Crude Condensate LPG

2012 2013 2012 2013 2012 2013

New South Wales - - - - - -

Northern Territory 2.5 1.8 - - - -

Queensland 5 5 1.7 1.6 2.4 2.2

South Australia 3.7 7.2 0.1 1.3 - -

Tasmania - - 0.1 0.6 0.1 0.6

Victoria 11.8 9.3 7.8 7.8 10.3 10.9

Western Australia 63.7 44.6 39.3 36.6 9.4 7.9

Total 86.7 67.9 49 47.9 22.1 21.6

Australia has significant quantities of discovered gas resources, many of which remain undeveloped. So,

decent market opportunity exists to develop new gas projects, including for residential and commercial

use, domestic gas processing industries and export sales.

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Figure 13: Number of Exploration Wells Spudded In Australia

The number of exploration wells spudded in the country continues to fluctuate in the recent years, and

is in the downward trend compared to 2001 levels. However, the number of offshore wells has been

halved in the past decade and the number of onshore wells continues to fluctuate following downward

trend.

The level of exploration activity in the country is increasing in terms of water depths, the major reason

behind this could be the operators trying to find new oil and gas resources in much deeper waters and

tougher environmental conditions.

DATA HIDDEN FROM VIEW

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Figure 14: Australia – Exploration Drilling Activity Trend (000s Meters)

Australia’s Wireline logging services market is expected to increase from 2013 levels, though

fluctuating; it is expected to follow the constant trend. The major reasons behind these fluctuations

could be the decreasing exploration activity and decreasing number of wells being drilled every year. But

the increasing water depths being drilled every year is giving some hope to Wireline logging services

market.

Australia has various factors affecting the Wireline logging services market in the country, some of

them are taxes, charges and fees oil and gas companies pay to government. When it comes to

petroleum related activities Australia pays a variety of taxes. It is estimated that on an average, taxes

and fees accounts for just under half of the industry’s overall level of pre-tax profit.

Total taxes have been amounted to approximately $8 billion in the last five years, with company taxes

estimated to account for slightly more than half of the actual total amount. Companies traditionally

invested more than the actual level of profits in Australia. The country’s oil and gas industry has spent

more than twice the capital investment in the past decade over cumulative profits.

DATA HIDDEN FROM VIEW

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Figure 15: Australia Wireline Logging Services Market Demand

Table 17: Australia Wireline Logging Services Market Demand to 2020

Year Market Demand

2010 XX

2011 XX

2012 0.16

2013 XX

2014 0.19

2015 XX

2016 XX

2017 0.21

2018 XX

2019 XX

2020 XX

DATA HIDDEN FROM VIEW

Australia Wireline Logging Services Market | Sample 69 | Mordor Intelligence

9 KEY COMPANY ANALYSIS

9.2 SCHLUMBERGER LTD.

COMPANY OVERVIEW

Schlumberger Limited is the world's largest oilfield services company. The company operates in more

than 80 countries and employs nearly 1,30,000 people. Schlumberger Limited, together with its

subsidiaries, supplies technology, integrated project management and information solutions to oil and

gas exploration and production industries worldwide. The company was founded in 1926 and its

principal offices are located in Paris, Houston, London and The Hague.

BUSINESS DESCRIPTION

Schlumberger operates through three groups: Reservoir characterization, drilling and production.

The Reservoir Characterization group provides reservoir imaging, monitoring, and development services;

wireline technology that offers open-hole and cased-hole services; exploration and production pressure

and flow-rate measurement services; information solutions, such as software, consulting, information

management, and IT infrastructure services that support oil and gas industry; data interpretation and

integration services; consulting services; and industry petrotechnical training solutions.

The Drilling group designs, manufactures, and markets roller cone and fixed cutter drill bits, and drilling

fluid systems; geo services; supplies engineering support, directional-drilling, measurement-while-

drilling, and logging-while-drilling services; provides bottom hole assembly drilling tools, borehole

enlargement technologies, impact tools, and tubulars and tubular services; and dynamic pressure

management solutions.

The Production group provides well services comprising pressure pumping, well cementing, stimulation,

and intervention; well completion services and equipment, such as packers, safety valves, and sand

control technology; artificial lift; coiled tubing equipment and services; slickline services for downhole

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mechanical well intervention, reservoir monitoring, and downhole data acquisition; subsea solutions;

and geological storage solutions, including storage site characterization for carbon dioxide, as well as

engages in the development, management, and environmental protection of water resources.

KEY FINANCIALS

Full year 2013 revenue of $45.27 billion increased 8 percent versus the same period last year with

international revenue 11 percent higher and North America revenue increasing 3 per cent.

Internationally, higher exploration and development activities in a number of geomarkets, both offshore

and onshore markets, contributed to the increase. The increase was led by the Middle East and Asia

which increased 23 per cent, mainly from robust results across a diversified portfolio of projects and

activities in Saudi Arabia, Iraq and UAE: increased seismic surveys across Asia, and sustained land and

offshore drilling activity in Australia and China geo markets. Europe/CIS/Africa revenue increased 8 per

cent, led by the Russia and central Asia region on strong land activity in central Siberia and robust

offshore projects in Sakhalin. The Sub-Saharan region increased on strong development, exploration

and seismic activities as well. Latin America was increased by 3 per cent, mainly due to solid progress

on an SPM project in Ecuador and strong IPM results in Argentina.

North America growth is driven by increased offshore revenue as a result of higher drilling and

exploration activities. This increase was largely offset by a decline in land as a result of reduction in rig

count and pricing weakness in the areas of drilling, stimulation and wireline, although the pricing trend

slowed down during the second and third quarters.

Full year 2013 pretax operating income of $9.34 billion increased 15 per cent versus the same period

last year as international pretax operating income of $6.88 billion increased 24 per cent, while North

America pretax operating income of $2.7 billion was flat.

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Schlumberger Financial Performance ($ millions)

Financial Performance 2013 2012 2011

Revenue 45,266 41,731 36,579

Income from Continuing Operations 6,801 5,230 4,516

Schlumberger Financial Performance by Groups ($ millions)

Oil Field Services 2013 Column1 2012 Column2

Revenue Income Before Taxes Revenue Income Before Taxes

Reservoir

Characterization 12,246 3,647 11,159 3,069

Drilling 17,317 3,309 15,892 2,789

Production 15,927 2,619 14,802 2,327

Eliminations & Other -224 -231 -122 -68

Total 45,266 9,344 41,731 8,117

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Schlumberger Financial Performance by Geography ($ millions)

By Geography 2013 Column1 2012 Column2

Oil Field Services Revenue Income Before Taxes Revenue Income Before Taxes

North America 13,897 2,735 13,535 2,737

Latin America 7,751 1,589 7,554 1,387

Europe/CIS/Africa 12,366 2,589 11,444 2,245

Middle East & Asia 10,810 2,700 8,775 1,921

Eliminations & Other 442 -269 423 -173

Total 45,266 9,344 41,731 8,117

ANALYST VIEW

Schlumberger is an organization with global presence. The company helps oil and gas operators in

providing the accuracy and comprehensive scope needed to correctly determine the petro physical

properties of the reservoir and its fluid contents. From its operations in Australia, the company’s

Wireline logging services market share in the country is expected to hit XX per cent mark by 2020.

However fluctuations in the country’s Wireline logging services market could also affect the company’s

market share in the coming decade. The company is planning to develop new technologies that will help

reduce both cost and time of operators.

The five per cent growth in revenues in the first quarter of 2014, compared to 2013 is mainly due to

further growth in key markets such as Australia and Saudi Arabia. Robust drilling activity and

technology uptake in Australia helping the company increase its revenue from Australian operations.

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In addition, the company is very active in signing new contracts. In Australia, Schlumberger Completions

has been awarded a contract worth $40 million by INPEX. The contract covers the upper and

intermediate completions for the first 20 wells in Phase I of the upcoming Ichthys development.

Based on all these, Mordor Intelligence estimates the company is expected to show decent growth in

Wireline logging services market in the coming decade.

Australia Wireline Logging Services Market | Sample

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