Case Studies

Survey of the Upstream Oil & Gas Industry in Saudi Arabia

Mission
Our client, a forward-looking firm, sought to understand the current state of Saudi Arabia’s Upstream Oil & Gas industry as well as market size of each Oilfield service sector. Our client focused on:
:: Existing service sectors & segmentation of backbone well services
:: Market forecast of Oil & Gas well services and drilling
:: Existing players and market share distribution
:: Market share among competitors of an identified player
Falcon’s Solution
Our research team utilized its existing network to engage over 20 experts on Saudi Well Services and Drilling. These experts included upstream specialists from existing well service and drilling operations within the operating and contracting sectors.
Results
Falcon produced a conclusive report containing in-depth information and expert projections on the Saudi Arabian selective upstream energy sector, as well as an assessment of the specific player requested by the client. With this information, our client successfully gained an understanding of the current state of these specific sectors in Saudi Arabia, and learned about future areas of opportunity.

Business Plan for Well Services in the Caspian Region

Mission
Our client, an energy industry player, was exploring a partnership with an affiliate to invest in establishing a well service company to cater to a captive market. Before entering into the partnership, our client needed a complete business plan that included:
:: On-site market survey and study
:: Off-site business plan development
:: On-site presentation of the business plan to the partners
Falcon’s Solution
Falcon launched into research, connecting with its partners in North America, Middle East and South East Asia to determine cost, availability and delivery schedule of service equipment, as well as availability of a specialist work force. Falcon’s appointed senior consultant went to the Caspian state on reconnaissance mission to survey, study & gather local market information, to assess size of the captive market of the service segment desired by the client. He also determined strengths and weaknesses of service providers, both local and foreign by conducting extensive interviews with the industry specialists locally based in the Caspian state. An international accounting firm was contacted to gather local corporate and personal income taxes, import tariffs and local levies.
Results
In less than eight weeks, we presented a detailed business plan including market analysis, strategy and implementation including SWOT analysis, sales and marketing forecast and strategy, milestones, personnel plan, detailed financial plan including start-up funding, CAPEX & OPEX requirements, projected profit and loss, cash flow and projected balance sheet.

Outlook for Oil Field Services in the Middle East

Mission
A client, from Europe, interested in equity investments in the Middle East wanted to know the market outlook of the OFS. Client’s specific requirement included:
:: Market outlook for future growth
:: Role of local OFS providers competing with international
:: Sources of CAPEX among the local players
:: Mechanism employed by local players for business expansion
:: Types of services provided by local players
:: Size and future impact in the GCC market by the local players.
Falcon’s Solution
Utilizing an existing network among nearly all of the local OFS providers Falcon gathered the required information. This was combined with information gathered by operating company experts who were utilizing the relevant services.
Results
Falcon identified 16 local OFS players and collated summaries on each. Since the first call the client has renewed contact to discuss new projects.

Market Entry Plan for Well Services in the Middle East

Mission
Our client, a leading American energy company, sought to gauge market conditions in four Gulf countries across multiple service lines for market penetration. Scope of the project included market survey and research, technical requirements and CAPEX estimates. Concentrated analysis was needed to establish feasibility of implementing a service line in a particular country and engaging local resources successfully.
Falcon's Solution
Falcon provided knowledge based information along data gathered from partners in GCC to determine the most suited Oil Field Service (OFS) markets to enter. A senior consultant assessed captive market sizes in six selected service lines, studied potential barriers to entry, strengths/weaknesses of potential competitors and provided estimated CAPEX requirements. A market-entry strategy was developed with careful precision and the client was guided to selectively target service lines in relevant countries.
Results
In four weeks, Falcon presented a detailed market entry plan with market analysis and potential streams of profitability. The client was given a comprehensive report on market conditions, competitors present, scope of operations and technical/financial requirements. Based on Falcon's recommendations, the client was successful in engaging with target National Oil Company and is presently mobilizing assets to commence operations in the Middle East

Analysis of Well Drilling and Engineering in MENA

Mission
Our client, a large Conglomerate from Oman, was seeking overview of Oilfield Service cluster sizes and identification of key market segments within MENA.
Falcon’s Solution
The Falcon team analyzed Upstream Oilfield Services & Equipment (OFSE), as well as Drilling & Work-over (D&W/O), market data for twelve Middle East / North African Countries over eighteen service lines during 2009-2013.
Result:
Falcon identified lucrative market components for investment, high-revenue services lines and successfully aligned client’s core requirements with a comprehensive report forecasting active well stocks, development wells drilled, compounded year-on-year growth of service lines and country briefs to highlight investment climate.

Development of a Saudi Arabian Well Services Company

Mission
Our client, a consolidated group, was looking to establish a specialized Oilfield Service provider in Saudi Arabia. Falcon was asked to design, develop and plan a new company with core offerings in Cementing, Pressure Pumping, Coiled Tubing, Nitrogen and Hydraulic Fracturing. Fundamental aim was to assist client's ambition for self-sufficiency via streamlined operational costs, penetrate into high-yield clusters and attain industry leadership status.
Falcon's Solution
Our team of consultants visited existing facilities to understand requirements and formulated comprehensive change management strategies to align long-term plans of the company.
Results
Falcon's report underlined keys to success, market & segment analysis, start-up timelines, capital expenditure requirements, projected market share. The plan is presently under evaluation for implementation.

Technical Audit, Performance Improvement & Business Strategy

Mission
Our client, based in the United Arab Emirates, required an independent audit of its tool manufacturing arm in lieu of lower productivity, flagging sales and asset underutilization.
Falcon’s Solution
Falcon stressed on the need to capitalize on tangible and intangible assets and minimize deterrents. Recommended strategy offered greater synergy and inter-departmental coordination, encouraged workforce diversity, emphasized on aggressive marketing and supply chain diversity to bring company back to profitability. Asset underutilization problems were addressed with change management strategies tailored to lower idle-time of production plant.
Results
Based on Falcon’s recommendations, the client repositioned its core strategies and revamped its work-flow procedures thereby reducing idle-time of machinery and increasing productivity by 15%.

Equipment Pricing Trend for Well Services in the Middle East

Mission
Our client, from North America, was poised to acquire an Oil & Gas Well Service Company in the Middle East. Majority of the assets of the target acquisition included specialized equipment that was purchased over the years. Our client wanted to determine fair market value of the equipment and therefore needed to know historic pricing trend of such equipment from an independent 3rd party.
Falcon’s Solution
Falcon contacted its affiliate company in North America specializing as a reseller of Oil Field Equipment in the Middle East. Our affiliate’s database was tapped to determine pricing of the actual equipment sold in the Middle East. In addition, Falcon contacted major Oil & Gas manufacturing houses to determine pricing of the remaining equipment that was not sold by our affiliate.
Results
In two weeks a composite report was presented that tabulated product-specific pricing history over a 5-year period for the majority of the equipment and over 10-year period for some of the equipment. Our client was extremely satisfied to acquire product-specific pricing history that helped them determine fair current market value of their target assets.

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