What role does Action Energy play in the Kuwaiti oil and gas industry?

Action Energy entered the oil and gas industry in 2014 with just two contracts, but within less than 10 years, it has emerged as a leading 100% Kuwaiti-owned service provider. The company now has the capacity to independently or in collaboration with international partners, execute complete upstream services for its clients. These services encompass a wide range of demands, including integrated drilling services, coiled tubing, stimulations and pumping, nitrogen services, cementing, drilling and completion fluids, fishing and downhole tools, slickline and wireline services, and wellhead maintenance services. In the period from 2020 to 2022, despite the challenges posed by the worldwide COVID-19 pandemic, Action Energy successfully launched multiple projects for Kuwait Oil Company (KOC) in cooperation with its partners. These projects included a cementing contract, a drilling and completion fluids services contract, a coiled tubing contract, and a deep drilling services contract.

What are your perspectives for the drilling sector in 2023?

Action Energy anticipates a highly promising year for drilling activities in 2023. This optimism stems from the latest drilling push by KOC and Kuwait Gulf Oil Company (KGOC). The company secured a new contract for six new 750 horsepower rigs and renewed a contract for two 1,500 horsepower rigs towards the end of 2022. Last year, a total of 44 rigs were tendered, and it is forecasted that a similar number or more will be tendered in 2023. Action Energy closely monitors the Kuwaiti oilfield services market and the numerous projects scheduled for the coming year. These projects include additional rig contracts for drilling and workover services, as well as expected tenders for other upstream service activities. The expected growth aligns with Kuwait Petroleum Corporation’s (KPC) 2040 strategic objectives, which aim to sustain production levels and tap into the potential of various sources such as heavy oil, standardised associated and non-associated gas in Jurassic reservoirs, and the outcomes of offshore exploratory drilling operations.

What are the technological particularities of the drilling sector in Kuwait?

 In terms of technology, the drilling sector in Kuwait does not witness significant adoption of new technologies. However, one notable implementation in the local market is the rig walking system. Due to limited available wellsite space, KOC has already utilized all the available space for wellheads, making it physically impossible to allocate additional space for new wells. Therefore, the drilling of new wells can only be achieved by compacting the distance between the existing wellheads on already-established well pads. This presents a challenge that requires precise equipment capable of working on the same pad without interfering with operations on other wells. The equipment needs to be compact and efficient, minimizing rig move time and maximizing drilling time for operational efficiency. Essentially, the rig should be capable of moving by itself on location, and this requirement is part of the Kuwait Oil Company’s upgrading plan for the Kuwaiti rig fleet.

What are the key strategic priorities for the years to come?

Action Energy envisions significant growth in the next five years and is committed to continuous improvement and capacity expansion. Currently, the company provides drilling solutions for medium depths and workover, but expansion into deep drilling requires meeting specific qualification criteria. Therefore, Action Energy is in the process of pre-qualification for KOC to be eligible for deep drilling projects. The company aims to expand both vertically and horizontally, offering integrated oilfield services solutions. With fair competition in the market, Action Energy sees an opportunity to become a regional integrated upstream services provider and is actively exploring expansion within the GCC region. The company is also collaborating with multiple software companies to optimize its processes, recognizing the importance of supporting initiatives that drive digitalization in the Kuwaiti oil and gas sector. Action Energy’s vision is to establish itself as a recognized regional player across the Middle East and North Africa, while delivering cost-effective solutions and maintaining social responsibility.