Saudi Arabia Oilfield Chemicals Market: Current Analysis and Forecast (2025-2033)

Saudi Arabia Oilfield Chemicals Market Size & Forecast

The Saudi Arabia Oilfield Chemicals market was valued at USD 966.00 million in 2024 and is expected to grow at a strong CAGR of around 5.34% during the forecast period (2025-2033F), driven by increased upstream oil and gas activities and investments in expanding domestic energy production.

Saudi Arabia Oilfield Chemicals Market Analysis

Oilfield chemicals are chemicals that are used to enhance the efficiency, safety, and productivity of oil or gas operations. They are vitally imperative in drilling, production, stimulating, and cementing procedures. Such chemicals are used in controlling the formation pressure, reducing corrosion, controlling scale and wax deposits during the extraction of hydrocarbons.

The Saudi Arabian oilfield chemical market is also witnessing strategic deployments aimed at increasing oil production rates and enhancing the efficiency of drilling and maintaining previously drilled wells. Efforts are being made to use advanced stimulation and production chemicals that fit the geological profile of local reservoirs. A strong transition to combining environmentally friendly and high-performance chemical formulas that adhere to standards and regulations, and ensure intact functionality is observed. Additionally, the domestic manufacturing of major classes of chemicals is being enhanced to reduce dependency on imports and achieve a steady supply. They are also introducing digital monitoring tools to monitor chemical use and performance to optimise in real-time and to be cost-efficient in upstream operations. The implementations form the core of achieving the long-term vision of energy sustainability, technological enhancements, and operating excellence of Saudi Arabia in its oil and gas industry.

For example, on May 26, 2025, the governments of the Kingdom of Saudi Arabia and the State of Kuwait announced that Wafra Joint Operations had made a new oil discovery in the North Wafra Wara-Burgan field, located 5 kilometers north of the Wafra field. Crude oil flowed from the Wara reservoir in the North Wafra (Wara-Burgan-1) well at a rate exceeding 500 barrels per day, with an API gravity of 26 to 27 degrees.

 This marks the first discovery since the resumption of production operations in the Partitioned Zone and its adjacent offshore area in mid-2020. The discovery is regarded as highly significant, given its positive impact on both countries’ standing as reliable global energy suppliers and their capabilities in the exploration and production sector.

Saudi Arabia Oilfield Chemicals Market Trends

This section discusses the key market trends that are influencing the various segments of the Saudi Arabia Oilfield Chemicals market, as found by our team of research experts.

Expansion of Onshore and Offshore Drilling Activities

The growth of onshore and offshore drilling is a major trend contributing to the Saudi Arabia oilfield chemicals market. The nation is striving to extract the maximum possible output from old oilfields, besides exploring the untapped offshore reserves. The current drilling boom requires an increased amount and variety of specialty oilfield chemicals to enhance efficient extraction, minimize equipment corrosion, and ensure well integrity. Consequently, there is a gradual increase in demand for sophisticated formulations to suit the geologically diverse and the environmental complexities of these extended operations.

On 18 February 2025, Arabian Drilling is the largest onshore and offshore drilling company in Saudi Arabia by fleet size and Shelf Drilling, Ltd. (“Shelf Drilling”) announced the signing of a Memorandum of Understanding (“MOU”) with the intention of forming a strategic alliance (the “Alliance”) which aims to deploy some of Arabian Drilling’s premium jack-up rigs internationally and expand the reach and capabilities of both companies.

Saudi Arabia Oilfield Chemicals Industry Segmentation

This section provides an analysis of the key trends in each segment of the Saudi Arabia Oilfield Chemicals market report, along with forecasts at the regional and provincial levels for 2025-2033.

The special oil field chemicals market dominated the market share in 2024.

Based on the type, the market is segmented into commodity oil field chemicals and special oil field chemicals. Among these, the special oil field chemicals market held a significant market share in 2024. In Saudi Arabia, specialty chemicals are driving market growth, as they enable more convenient extraction procedures under conditions of high salinity, extreme temperatures, and great depth. These chemicals, which include corrosion inhibitors, demulsifiers, and scale inhibitors, have better performance than commodity alternatives. Moreover, it is increasingly being utilized as an operator to pursue efficiency, reliability, and extended well life in aging and high-value oil and gas assets. On March 1, 2022, Halliburton Company opened its First Oilfield Specialty Chemical Manufacturing Reaction Facility in Saudi Arabia. Halliburton Chemical Reaction Plant – the first of its kind in Saudi Arabia to manufacture a broad range of chemicals for the entire oil and gas value chain, as well as many other industries. The facility expands Halliburton’s manufacturing footprint in the Eastern Hemisphere and strengthens and accelerates its ability to serve the chemical needs of Middle East customers.

The drilling fluids & additives segment held a dominant market share in 2024.

Based on application, the Saudi Arabia Oilfield Chemicals market is segmented into drilling fluids & additives, production chemicals, completion method, stimulation additives, cementing additives, and others. Among these, the drilling fluids & additives segment held a dominant market share in 2024. The adoption of this segment is huge because drilling activities are intensifying amid conventional and unconventional reservoirs. The drilling fluids are needed to support the wellbore, control the formation pressure, and take cuttings to the surface. As the wells are drilled deeper and more complexly, sophisticated fluid formulation is a major demand. On July 2, 2025, Arabian Drilling, Saudi Arabia’s largest drilling contractor by fleet size, announced that it had successfully secured contract extensions for four of its rigs with Aramco. The combined backlog value of SAR 1,374 million (USD 366.4 million) and durations varying between 1 to 10 years. This significant milestone elevates the company’s current backlog to SAR 11.1 billion (USD 2.96 billion).

Eastern Region leads the market

The Eastern Region held a dominant market share in 2024. The Saudi Arabian Eastern Region is the engine of the Saudi oil sector, boasting giant fields such as Ghawar and Safaniyah. The region experiences high drilling and production activity, resulting in sustained and high-scale demand for oilfield chemicals. It has a developed infrastructure with Jubail Industrial City, which allows the rapid supply and local production of specialty chemicals. The region's high level of logistics, proximity to the production area, and the density of refineries all make it one of the best markets for deploying chemical innovation. With investments in enhanced oil recovery (EOR) and unconventional resources, the demand for advanced oilfield chemicals is expected to continue increasing. On April 09, 2025, Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz announced that the Saudi Arabian Oil Company -Saudi Aramco- discovered fourteen Arabian oil and natural gas fields and reservoirs in the Eastern Region and the Empty Quarter. The discoveries include six fields and two reservoirs of Arabian oil, as well as two fields and four reservoirs of natural gas. 

Saudi Arabia Oilfield Chemicals Industry Competitive Landscape

The Saudi Arabia Oilfield Chemicals market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Saudi Arabia Oilfield Chemicals Companies

Some of the major players in the market are RECP - Petrochemical (Renewable Energy Petrochemical Factory Ltd Co), OilField Production Chemical Factory, Oil Chemistry Industrial Company, Vision Chemicals, Halliburton Energy Services Inc., Baker Hughes Company, Meta Solutions Industrial Company, Saudi Multichem, Clariant Tamimi, and Arkema Chemicals Saudi Arabia.

Recent Developments in the Saudi Arabia Oilfield Chemicals Market

• On April 24, 2025, two oil refineries will be built in India as part of Saudi Arabia’s USD 100-billion investment pledged to the South Asian nation, which would cover cooperation in multiple areas, including energy and petrochemicals. The projects, which will be built in partnership with the Indian government, and agreements to enhance cooperation with the world’s biggest crude exporter across various industries were announced on 22 April, during a state visit by Indian Prime Minister Narendra Modi to Saudi Arabia..

• On February 11, 2024, in the presence of HRH Prince Abdulaziz Bin Salman Al Saud, Minister of Energy, His Excellency Eng. Khalid Al-Falih, Minister of Investment; His Excellency Mr. Bandar bin Ibrahim AlKhorayef, Minister of Industry & Mineral Resources, Baker Hughes and Dussur, owned by the Saudi Arabian Public Investment Fund (PIF), Saudi Aramco and SABIC (Saudi Basic Industries Corporation), formally inaugurated the previously announced joint venture (JV) chemicals manufacturing facility focused on providing oilfield and industrial chemicals in The Kingdom of Saudi Arabia (KSA). The facility will be known as the Saudi Petrolite Chemicals facility.

Saudi Arabia Oilfield Chemicals Market Report Coverage

Reasons to Buy the Saudi Arabia Oilfield Chemicals Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

Customization Options:

The Saudi Arabia Oilfield Chemicals market can further be customized as per requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.