Hua Xia Shi Bao·2025-09-27 11:17Core Viewpoint - The international oil price has been declining this year, yet the oil service equipment sector is experiencing significant growth, particularly with multiple large contracts awarded to Chinese oil service companies in the Middle East [2][3]. Group 1: Recent Contracts and Orders - China National Petroleum Engineering Co. announced a $2.524 billion contract with a Middle Eastern client, equivalent to approximately 18.032 billion RMB [2]. - Earlier, the same company secured another contract worth $1.601 billion, approximately 11.538 billion RMB [4]. - CNOOC Engineering also won a contract valued at around $4 billion for a project in the Middle East [4]. Group 2: Market Dynamics and Analysis - The Middle East remains a traditional oil and gas production area with high demand for oil services due to numerous new projects [2]. - The "Belt and Road" initiative has facilitated increased investment by Chinese oil companies in the region, enhancing the competitiveness of oil service firms [2][3]. - Analysts suggest that the success of Chinese companies in securing contracts is partly due to challenges faced by international competitors, including internal restructuring and mergers [4]. Group 3: Financial Performance - In the first half of 2025, 17 listed oil service companies reported a total revenue of 121.681 billion RMB, a year-on-year increase of 3.73%, and a net profit of 5.688 billion RMB, up 3.78% [6]. - Companies like Jereh and Neway have shown significant revenue growth, with Jereh's revenue increasing by 39.21% year-on-year [7]. - The total investment in energy projects by China in six Middle Eastern countries is projected to reach $50.28 billion from 2020 to 2024, driving rapid growth in oil service equipment exports [7]. Group 4: Future Outlook - The Middle East continues to advance oil and gas development, with Saudi Aramco planning to execute 85 major projects over the next three years, focusing on oil, gas, and petrochemical facilities [10]. - Saudi Aramco's capital expenditure guidance for 2025 is set between $52 billion and $58 billion, indicating a year-on-year increase of 3% to 15% [10].