Data and analytics firm GlobalData announced in a recent press release sent to Rigzone that the value of global oil and gas contracts increased in the second quarter (Q2) of this year.
“The industry experienced a notable 47 percent quarter-on-quarter increase in total disclosed value, reaching $54.91 billion in Q2 2024 from $37.3 billion in Q1,” GlobalData noted in the press release, adding that its latest industry contracts report showed that “the total volume of oil and gas contracts declined marginally from 1,473 in Q1 2024 to 1,377 in Q2 2024.”
A chart included in the press release shows that there were 681 operations and maintenance (O&M) scope contracts, 400 procurement scope contracts and 122 multi-scope contracts in the second quarter. Other contract scopes in the quarter included design and engineering, construction and installation, the chart highlights.
GlobalData stated in the press release that global oil and gas contracting activity in the second quarter was boosted by key upstream contracts from Petrobras.
The company highlighted in the press release an $8.15 billion P-84 and P-85 FPSO construction contract awarded by Petrobras to Seatrium for the Atapu and Sepia fields offshore Brazil. In addition, it mentioned an order from Petrobras for the Seagems and Sapura consortium and the five recent orders from Petrobras’ Subsea 7.
GlobalData highlighted other “notable contracts” in the press release, citing Samsung Engineering, GS Engineering & Construction and Nesma & Partners’ $7.7 billion EPC contract with Saudi Aramco for the expansion of the Fadhili gas-fired power plant, the Tecnimont-led consortium’s $2.3 billion EPC contract with Sonatrach, and Saipem’s $850 million work on rigid pipelines, flexible flowlines, jumpers and umbilicals for Azule Energy’s Ndungu field development.
“Petrobras’ significant contracts, including the $8.15 billion P-84 and P-85 FPSO construction contract with Seatrium, the $1.8 billion subsea engineering contract with the Sapura consortium and another $2.5 billion for pipelay vessels, rigid risers and flowlines contracts with Subsea 7, were the driving forces behind the increase in the total value of oil and gas contracts,” said Pritam Kad, oil and gas analyst at GlobalData, in the press release.
In a press release to Rigzone in May, GlobalData stated that the oil and gas contracting market was facing turbulence, “with a significant 37 percent quarter-on-quarter decline in announced contract value, from $50.2 billion in the fourth quarter of 2023 to $31.4 billion in the first quarter of 2024.”
In that press release, GlobalData highlighted that its most recent contract report for the oil and gas industry at that time showed that “total contract volume decreased from 1,346 in the fourth quarter of 2023 to 1,142 in the first quarter of 2024.”
“Many traditional oil and gas industry projects are being delayed or postponed due to concerns about demand prospects in oil and gas consuming countries in the face of looming recession and high inflation, which is clearly reflected in the decline in order value and volume,” Kad said in this press release.
“In contrast, oil prices are expected to remain favorable for producers as supply disruptions may occur due to geopolitical risks. GlobalData expects delayed or nearly completed projects to be pushed forward in the medium term,” Kad added.
In another press release from GlobalData sent to Rigzone in August 2023, the company said that the published contract value of the entire oil and gas industry increased significantly by 60 percent in the second quarter of 2023 compared to the previous quarter.
This increase was “mainly due to a large order for the North Field South (NFS) LNG project in Qatar,” GlobalData explained in that press release, highlighting that the company’s most recent contract report for the oil and gas industry at the time showed that “total contract value increased from $35.4 billion in the first quarter of 2023 to $56.7 billion in the second quarter of 2023.”
“However, contract volumes could not keep pace with this pace, declining from 1,625 in the first quarter of 2023 to 1,256 in the second quarter of 2023,” the company added.
In this press release, Kad said: “The major value boost is attributed to the groundbreaking $10 billion engineering, procurement, construction and commissioning (EPCC) contract between the Technip Energies joint venture and Consolidated Contractors Company (CCC) for the construction of the 16 million tonnes per annum North Field South (NFS) LNG project in Qatar.”
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