Oil and gas contract activity declined following the relatively stable activity in Q1 2021, with the industry recording a 7% decrease in the number of contracts and a significant decrease in disclosed contract value in Q2 2021, according to GlobalData, a data and analytics company.
The latest report by GlobalData, Q2 2021 Global Oil & Gas Industry Contracts Review, notes that the number of oil and gas contracts declined from 1,453 in Q1 2021 to 1,353 contracts in Q2 2021. The value of these contracts also decreased to USD 27.6 billion in Q2 from USD 46.4 billion in Q1, wherein the significant difference maker was Chiyoda and Technip Energies’ USD 12.2 billion contract for North Field East LNG which was signed in Q1 2021.
Pritam Kad, Oil & Gas Analyst at GlobalData, comments, “The decline in the number of contracts in Q2 2021 looks temporary and will begin to recover, as the industry foresees an improvement in contracts activity with business outlook, crude oil prices and COVID-19 restrictions now easing.”
Operation and Maintenance (O&M) recorded 47% of the total contracts in Q2 2021, followed by procurement scope with 18%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 16%.
The notable contracts include Saipem and Daewoo Shipbuilding & Marine Engineering (DSME) joint venture, as well as Keppel Shipyard’s contracts from Petrobras for the construction of Buzios VIII (P-79) and Buzios VII (P-78) FPSO for deployment on the Buzios field. Brazil, and McDermott International and Sinopec International Petroleum Service consortium’s USD 2 billion future engineering, procurement, construction, and commissioning (EPCC) contract from Total for the EPCC services for Tilenga development in the Lake Albert Basin, Republic of Uganda.