Oil Services Market Growth Seen Lower on Crude Prices, IFP Says

Oil-service companies including CGGVeritas SA (GA) and Technip SA (TEC) are likely to experience a slower- growing market next year as exploration projects are delayed because of the global economic slowdown and falling oil prices, the French Institute of Petroleum said.

The market for seismic services, which is technology used to survey oil reserves, may grow about 3 percent next year, compared with an estimated 10 percent expansion to $12 billion euros ($15.5 billion) this year, the Paris-based organization known as IFP said in a study published today. CGGVeritas and WesternGeco, owned by Schlumberger Ltd. (SLB), had 54 percent of the market in 2007, it said.

The market for engineering, construction and offshore oilfield equipment is also expected to expand at a slower 10 percent to 15 percent pace next year compared with an estimated 22 percent rise this year to $52 billion, the study said. Last year, Aker Solutions ASA held 14 percent of the market, Technip 10 percent and Saipem SpA (SPM) 9 percent, it said.

The slowdown for oil-service providers will coincide with a similar trend in global investment in exploration and production, which is expected to stay nearly unchanged at $394 billion next year, compared with 19 percent growth this year, the report said.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net

To contact the editor responsible for this story: Guy Collins at guycollins@bloomberg.net

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