Diversified Drilling are encouraged by positive signs in the BOP rental market, and for the oil industry in general: the U.S. drilling rig count rose again last month and U.S. crude oil production also increased, led mainly by activity in Alaska. In addition, the oil industry has focused on making rigs more productive by optimizing their completion techniques, oil companies are displaying a positive outlook for the latter part of the year, with many firms planning to keep their rigs operating as well as adding rigs later in 2017.
The Middle East Rig Count has also increased steadily from the start of 2017 and is currently enjoying an approximate 4% increase since January
Diversified Drilling have purchased new API 4 Cameron rams BOPs, and has OEM re-certified the majority of its fleet in the last few months, exploiting a period of low drilling activity. For this reason Diversified Drilling is ready to exploit all the upside potential of the 2021 market, and to provide top quality certified equipment to all its customers. DDIE expect the BOP rental market to expand consistently in the next 18/36 months, with the level of production returning to pre-COVID levels in 2021.
This coupled with a marked growth in activity in our Northern Iraq facility is reason to be optimistic, after a low spell in Erbil, we are currently involved in three major projects with our tubing running services and pressure control equipment, we are also participating in several tenders in Iraq and feel confident that our activity will increase going forward