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    Report: Offshore projects key drivers for upstream contract value momentum

    Feb. 20, 2023
    The oil and gas industry overall contract value was up by 27% quarter-on-quarter during fourth-quarter 2022, GlobalData revealed.
    Courtesy GlobalData
    Contracts By Scope And Count In The Oil And Gas Industry Q4 2022 63f3f03d5ea43

    Offshore staff

    LONDON — 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 increase of 27% in fourth-quarter 2022, according to GlobalData.

    GlobalData’s latest report shows that the overall contract value increased from $47.38 billion in third-quarter 2022 to $60.36 billion in fourth-quarter 2022. Contract volume, however, decreased from 1,673 in third-quarter 2022 to 1,443 in fourth-quarter 2022.

    Pritam Kad, GlobalData oil and gas analyst, said, “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 northeast coast of Qatar; and ADNOC’s $4 billion framework with ADNOC Drilling, SLB and Haliburton for the integrated drilling fluids services for projects in the UAE.”

    Operations and maintenance (O&M) represented 55% of the total contracts in fourth-quarter 2022, followed by procurement with 19%, and contracts with multiple scopes (e.g., construction, design and engineering, installation, O&M, and procurement) accounted for 13%.

    The other notable contracts include

    • Sembcorp Marine’s $3.05 billion contract from Petrobras for the EPC of the P-82 FPSO vessel to be deployed on the Buzios Field in the presalt Santos Basin offshore Brazil; and
    • The JGC Holdings and Samsung Heavy Industries consortium’s contract estimated between $2 billion and $3 billion from Petronas for the EPC and commissioning of a nearshore FLNG plant with an expected capacity of 2 mtpa in Sabah, Malaysia.

    02.20.2023

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