Offshore staff

LONDON — Contract activity appears to be returning to normal for the global oil and gas industry, despite the Russia-Ukraine war and volatility in crude oil prices, according to GlobalData.

Last year the industry’s overall contract value increased by 3% to $183.3 billion, despite a 4% decrease in contract volume.

Pritam Kad, oil and gas analyst with GlobalData, said, “Petrobras' three FPSO contracts, worth $8.75 billion to Keppel Shipyard (P-80 and P-83 FPSO) and Sembcorp Marine (P82 FPSO) for the Búzios Field in the presalt Santos Basin, Brazil, were the significant contributors to the overall contract value during the year."

Operation and maintenance (O&M) represented 50% of last year’s overall contracts in 2022, followed by procurement with 24%. Contracts with multiple scopes, such as EPCI, design, and O&M, accounted for about 13%.

Other major awards included Saipem’s $4.5 billion contract from Qatargas for the engineering, procurement, fabrication, and installation of two natural gas compression facilities for the North Field Production Sustainability Offshore Compression Complex Project – EPC 2, offshore the northeast coast of Qatar.

ADNOC’s three framework agreements worth AED14.68 billion ($4 billion) with ADNOC Drilling, Schlumberger and Haliburton for the provision of integrated drilling fluids services in the UAE was another standout award.

Kad concluded, “The oil and gas industry is likely to see some relief in the short term for now, but the environmental concerns and the recent advances toward sustainable green fuel and energy transition projects will present some significant challenges to growth in the long run."

03.02.2023