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.

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.