The global oil and gas industry’s total contract value reached USD 42 billion in Q2 2019, a massive 79% increase on Q1’s value of USD 23.4 billion according to GlobalData, a data and analytics company.
Pritam Kad, Oil & Gas Analyst at GlobalData, says, “This rise occurred despite there being a slight decline in the number of contracts from 1,453 in Q1 to 1,283 in Q2, 2019.”
GlobalData’s latest report: “Q2 2019 Global Oil & Gas Industry Contracts Review”, reveals that the upstream sector constituted 71% of the total contracts awarded, with 858 contracts. The midstream and downstream/petrochemical sector recorded 245 and 100 contracts, respectively. The increase in contract value was largely driven by engineering, procurement and construction (EPC) contracts in the midstream sector such as Bechtel’s USD 9.57 billion agreement with NextDecade for the Rio Grande liquefied natural gas (LNG) project in Texas and Saipem, McDermott International and Chiyoda – CCS JV’s USD 8 billion contract with Anadarko Petroleum for the development of an onshore LNG park in Mozambique.
Operation and Maintenance (O&M) represented 60% of the total contracts in Q2 2019, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 12%.
Europe constituted 37% of total contracts in Q2, with a total of 471, followed by North America, which accounted for 33% with 421.