The overall number of contracts in the oil and gas industry fell by 16% in the second quarter of 2022, according to GlobalData. However, the data and analytics company notes that contract value stayed level.
GlobalData’s latest report, Oil and Gas Industry Contracts Analytics by Sector (Upstream, Midstream and Downstream), Region, Planned and Awarded Contracts and Top Contractors, Q2 2022, reveals that the number of contracts decreased from 1,717 in Q1 2022 to 1,446 in Q2 2022. Meanwhile, contract value remained stable, at USD 37.7 billion in Q2 2022 compared to USD 37.6 billion in Q1 2022.
Pritam Kad, Oil & Gas Analyst at GlobalData, comments, “The value of oil and gas industry contracts remained stable thanks to Dalian Petrochemical’s Y4.67 billion engineering, procurement and construction (EPC) contract for a deep conversion oil refinery in Pakistan’s Larkana Sindh province.”
Operation and Maintenance (O&M) alone accounted for 49% of all contracts in Q2 2022; followed by procurement contracts, with 22%; and contracts that featured multiple scopes, including construction, design and engineering, installation, O&M, and procurement aspects, represented 12%.
Besides Dalian Petrochemical’s EPC, contracts of note during the quarter included Samsung Heavy Industries’ USD 3 billion contract for the construction of LNG carriers; and Baker Hughes Norge, Halliburton, and Schlumberger Norge retaining contract for integrated drilling and well services on Equinor-operated fields, which included 18 fixed platforms and 12 mobile rigs (NCS).
Kad adds, “The oil and gas industry is largely unable to see a clear path forward in terms of new project implementation due to the Russia-Ukraine crisis, energy demand, persistently high oil prices, and rising inflation fears.”