Companies like Wellpro Group and Coretrax are leading the charge, expanding their footprint and securing key contracts. However, challenges persist, as a disconnect between service providers and oil companies continues to hinder market growth.
Following its success in the MENA region, Wellpro Group extended its strategic alliance to Asia Pacific, managing Omega Well Intervention products across the region. "This collaboration with Wellpro Group allows us to offer decades of combined experience and an expanded product range," stated Brian Garden, Managing Director of Omega Well Intervention. "With Omega’s engineering expertise and manufacturing capabilities, Wellpro Group gains access to innovative downhole tools and test facilities to enhance product development."
Meanwhile, Coretrax has strengthened its well intervention services through the acquisition of Wireline Drilling Technologies’ technology suite. Securing five multi-year contracts for 2024, the company plans to increase its workforce by 100 personnel and expand its regional footprint by 30%. "The next 12 months will see significant growth, particularly in Australia, Brunei, and Malaysia," said John Fraser, CEO of Coretrax. "Our focus is on responding to increasing demand and ensuring our technology is widely accessible across the region."
Key challenges
Despite these advancements, well intervention enablers face hurdles. A key issue is the misalignment between service providers and oil companies, often stemming from cost concerns. While new technologies offer efficiency and cost savings, limited budgets have made companies cautious. "Service companies struggle to convince oil firms to adopt new technologies due to a lack of regional knowledge and proof of effectiveness," explained industry expert Adi Utama. "Guarantees and success stories are crucial in building trust."
Utama suggested a strategic approach: "Service providers should offer initial discounts on trial wells, proving the effectiveness of their solutions before securing long-term contracts. It’s about creating win-win situations."
In a competitive economic environment, oil companies are becoming more selective. "Operators want solutions tailored to their wells, with proven value and cost-effectiveness," Utama continued. "Service companies must come prepared with knowledge of good conditions, potential gains, and strategies for cost-efficient implementation."
If service providers can bridge this gap with oil companies, Asia Pacific’s well intervention market could thrive, unlocking new opportunities for long-term collaboration and growth.
This is an excerpt from the Asia Pacific Offshore Well Intervention Outlook by Offshore Network. Read more here.
