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Oil and gas industry overall contract value up by 27% QoQ during 4Q22, reveals GlobalData

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Oilfield Technology,

The COVID-19 pandemic has had a significant impact on the oil and gas industry, leading to a decline in demand and a drop in oil prices. However, the industry has been recovering since then, with oil prices gradually increasing and demand for energy returning to pre-pandemic levels. Consequently, the overall oil and gas industry contract value has seen a significant quarter-on-quarter (QoQ) increase of 27% in 4Q22, reveals GlobalData, a leading data and analytics company.

GlobalData’s latest report, "Oil and Gas Industry Contracts Analytics by Sector (Upstream, Midstream and Downstream), Region, Planned and Awarded Contracts and Top Contractors, Q4 2022,” shows that the overall contract value increased from US$47.38 billion in 3Q22 to US$60.36 billion in 4Q22. Contract volume, however, decreased from 1673 in 3Q22 to 1443 in 4Q22.

Pritam Kad, Oil and Gas Analyst at GlobalData, comments: “The key drivers for the value momentum were Saipem’s $4.5 billion contract from Qatargas for the engineering, procurement, and construction (EPC) of the North Field Production Sustainability Natural Gas Compression Complex Project, offshore north-east coast of Qatar; and ADNOC’s $4 billion framework with ADNOC Drilling, Schlumberger, and Haliburton for the integrated drilling fluids services (IDFS) for projects in the UAE.”

Operations and maintenance (O&M) represented 55% of the total contracts in 4Q22, followed by procurement with 19%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, accounted for 13%.

The other notable contracts include Sembcorp Marine’s US$3.05 billion contract from Petrobras for the EPC of Floating Production, Storage, and Offloading (FPSO)- P-82 vessel to be deployed on the Buzios field in the pre-salt Santos basin, Brazil; and JGC Holdings, and Samsung Heavy Industries (SHI) consortium’s contract estimated between US$2 - $3 billion from Petronas for the Engineering, Procurement, Construction, and Commissioning (EPCC) of nearshore Floating Liquefied Natural Gas (FLNG) plant with an expected capacity of 2 million tpy in Sabah, Malaysia.

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