GlobalData’s latest report, ‘Oil and Gas Industry Contracts Analytics by Sector, Region, Planned and Awarded Contracts and Top Contractors, Q3 2023,’ reveals that the overall contract value decreased from US$57.4 billion in Q2 2023 to US$42.6 billion in Q3 2023. At the same time, the contract volume also saw a drop from 1425 in Q2 2023 to 1128 in Q3 2023.
Pritam Kad, Oil and Gas Analyst at GlobalData, comments: “The ongoing geopolitical tensions and the unpredictable fluctuations in crude oil prices are significantly dampening the overall sentiment within the oil and gas sector. This is translating into a notable slowdown in projects/contracts activity reflecting a cautious approach among key stakeholders.”
Operation and Maintenance (O&M) represented 59% of the total contracts in Q3 2023, followed by procurement scope with 15%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 13%.
Some of the notable contracts during the quarter include HD Hyundai Heavy Industries’ agreement worth QAR14.2 billion (US$3.9 billion) with QatarEnergy for the construction of 17 ultra-modern Liquefied Natural Gas (LNG) carriers, as part of the North Field LNG expansion and Golden Pass LNG export projects as well as long-term fleet replacement requirements in Qatar; and National Petroleum Construction Co (NPCC) and Tecnicas Reunidas consortium’s AED13.1 billion (US$3.6 billion) contract from ADNOC Gas for the expansion of gas processing infrastructure at the Habshan complex in Abu Dhabi, United Arab Emirates.
McDermott International’s major contract ranging between US$750 million – US$1.5 billion from Qatargas Operating Company (Qatargas) for the Engineering, Procurement, Construction, and Installation (EPCI) services for the North Field Production Sustainability (NFPS) COMP1 – offshore fuel gas pipeline and subsea cables project in Qatar, is the other major contract in the quarter.
