Rahul Patel, founder and CEO of Transcontinental Energy Services, talks to The Energy Year about the company’s expansion into specialised oilfield services and unconventional oil and gasfield developments in the MENA region, its strategy for Oman and its use of advanced technology such as AI. Transcontinental Energy Services is an integrated services and production company.
Why has Transcontinental Energy Services decided to expand into the MENA region, and what are you offering the region?
Transcontinental Energy Services is expanding into MENA to bring knowledge and operational expertise in unconventional plays, especially as this region shifts from conventional to unconventional developments.
We’re operational across every major basin in the USA, offering a complete range of services, from frac and workover rigs to coiled tubing and chemical blending. We typically operate with six integrated business lines, giving us the ability to deliver full turnkey operations.
Our move into MENA is both a geographical expansion and knowledge transfer. Companies, such as Saudi Aramco, ADNOC, PDO and KOC [Kuwait Oil Company], are aggressively moving into unconventional oil and gas plays, and that’s our strong suit. We’ve spent over 15 years in the Permian Basin, where the majority of our work is in unconventional operations. So, the idea is to help MENA operators avoid the missteps we’ve already learned from in the USA.
With proven frac and completion designs, we bring immediate efficiency to MENA from day one, shortening the learning curve significantly. We don’t just offer services; we offer a proven model tailored for unconventional success.
What is your implementation strategy for bringing this US experience into the MENA region?
Our strategy is rooted in operational efficiency. In unconventional fields, speed and cost-efficiency are everything. There’s no room for a frac fleet sitting idle for 10 or 20 days. Unconventional wells cost around three times more than conventional ones, so operational delays are extremely costly.
We focus on achieving specific key performance indicators, such as completing 10 frac stages a day or milling out 33 plugs per shift. These KPIs define our approach in the USA and will be critical benchmarks in MENA as well. We’re transferring not just our technology but our workflow and standards, right down to logistics and training.
A critical part of our long-term strategy is to train local labour forces and engineers. We want them to adapt to this pace and methodology so that the operations we implement are sustainable and efficient, even after we step back.
What challenges have you faced while trying to implement your US-based models in MENA?
One of the biggest hurdles has been the pace of operations. In North America, the decision-making and execution are much faster and single-tiered. In contrast, in MENA, especially with IOCs, the procurement cycles and project approvals are multi-tiered and slightly slower.
We are working closely across these companies in overcoming this pace which is a major focus for us. We are working hard to align with the regional way of doing business while trying to inject the urgency and speed that unconventional plays demand. It’s about finding a balance: being patient while demonstrating that faster execution yields better results.
How are you navigating competition in the Middle East, given the presence of many large service providers?
We come from the most competitive basins in the world. There are over 40 fracking companies, 1,000-plus rig providers and 300 coiled tubing firms in the USA, so competition is nothing new.
We differentiate ourselves through our technology, efficiency and economic models. Our focus is on faster well completions. We also bring cutting-edge equipment into the region. Our value proposition to clients is clear: better results in less time and at lower cost.
How is Transcontinental leveraging AI and other advanced technologies in your services?
AI is a key part of our operations. It helps reduce human error and enhances predictive capabilities. Every well and formation is different, and AI allows us to customise and optimise our services in real-time.
For example, we use AI across our operations, from data analytics in coiled tubing units to real-time performance tracking in frac fleets. We can now remotely monitor and manage every plug that’s milled, analyse returns and address anomalies before they become problems. This has completely shifted us from a reactive to a proactive stance.
Here is one real-world impact: a client in the USA required hot water for fracking. Using our technologies, we delivered that solution three times faster than what you can do with existing equipment, cutting frac time from 18 days to nine. This is a significant win in both cost and production timelines.
How are you approaching operations in Oman, and what are your growth expectations over the next few years?
Oman is crucial to our Middle East expansion. We’re locally incorporated and already engaged in tendering with major operators. What makes Oman attractive is how closely its procedures align with what we already do in the USA. We can more easily adopt our technologies and practices.
Another advantage is the presence of multiple operators, which creates a more competitive and flexible environment. This diversity allows us to better blend and deploy our service offerings while managing risk effectively.
We plan to start generating revenue in Oman by the end of this year. Over the next two to three years, we aim to expand into four service lines and offer a full suite, from fracking to completions. Our goal is to become a full turnkey provider in Oman.
Our base is already identified, and construction is underway. We expect our first facility to open by December 2025.
What is your investment plan for the MENA region?
Our total investment in the MENA region is up to USD 200 million in the next three and a half years. Out of that, Oman’s share is most likely going to fall between USD 60 million and USD 70 million. If we enter the frac market in Oman, then our investment will increase to north of USD 100 million, and our total regional investment will also climb to somewhere north of USD 250 million.
As part of our strategic focus in the MENA region, we are currently prioritising Oman, along with the UAE, Saudi Arabia and Kuwait.
Do you pursue partnerships in Oman to support localisation and meet in-country value (ICV) requirements?
Yes, we’ve signed several memoranda of understanding and partnership agreements – about seven or eight already – with local companies involved in workover and well testing. It’s critical for us to combine our technological strengths with the local expertise on the ground.
We see these partnerships not just as compliance measures for ICV but also as strategic collaborations that enhance efficiency and market adaptability. Localisation isn’t an afterthought; it’s embedded into our operational model.
How is Transcontinental integrating sustainability and ESG into its operations in the MENA region?
We have a robust sustainability strategy. We’re transitioning our 5,000-plus diesel engines to electric, pushing for comprehensive ESG alignment and implementing strict emission controls. For example, our well-testing services now include incineration instead of gas flaring, achieving a 99.8% reduction in methane emissions.
These aren’t just future plans: They’re operational now. We’ve already deployed our incineration technology in Abu Dhabi. We believe sustainability will define the future of oilfield services, both in terms of environmental impact and access to ESG financing. Companies that delay risk being left out of the game entirely.
What is your long-term vision for Transcontinental, particularly as you move towards going public?
Our vision is to focus on Southeast Asia and MENA over the next decade, where we will expand aggressively. Our presence in the USA will continue growing organically.
We’re currently operating in 13 countries across multiple business verticals, including packaging and E&P. Our internal teams are already structured to meet SEC [US Securities and Exchange Commission] regulatory standards, with leadership drawn from investment banking backgrounds, including myself.
So far, our growth has been largely organic, but we are preparing to raise funds, especially for our CBM [coalbed methane] blocks in India. However, our energy services business remains self-sufficient unless larger capital requirements emerge. In addition, we’re targeting a public listing by 2028 in the US market.
Source: Theenergyyear.com