Oil, Gas Sector Sees Dip in Contract Volume, GlobalData Reveals
The global oil and gas industry experienced a 15 percent quarter on quarter decrease in total contracts, GlobalData noted in a release sent to Rigzone recently.
The company outlined in the release that this figure dropped from 1,596 in the third quarter of last year to 1,353 in the fourth quarter of 2024. Despite the dip in volume, the overall contract value remained stable, driven by the announcement of some major contracts in Africa, GlobalData stated in the release, which highlighted a recent company report on oil and gas industry contracts.
This report revealed that overall contract value came in at $39.2 billion in the fourth quarter and $38.8 billion in the third quarter, the release highlighted.
A chart showing oil and gas industry contracts by scope in the fourth quarter of 2024, which was included in the release, revealed that 670 contracts had an operations and maintenance scope, 403 contracts had a procurement scope, 139 contracts had multiple scopes, 78 contracts had a design and engineering scope, 62 had a construction and installation scope, and one had an asset retirement scope.
“The major contracts announced in the African region include Tecnicas Reunidas and Sinopec Engineering’s $4 billion new deep conversion oil refinery project in Algeria’s Hassi Messaoud region, and $1.4 billion Wuhuan Engineering and WeDo’s ammonia and urea plant project in Angola,” GlobalData said in the release.
The company stated that some other notable contracts during the quarter were Bram Offshore and Starnav Servicos Maritimos’ $2.74 billion construction and charter contract from Petrobras for 12 Platform Supply Vessels (PSVs) and Saipem’s $1.9 billion contract from TotalEnergies EP Suriname for the EPC, supply, pre-commissioning, and commissioning assistance for the Subsea Umbilicals, Risers, and Flowlines (SURF) package for the GranMorgu project in Suriname.
“These contracts demonstrate continued investment and expansion in key global oil and gas projects,” GlobalData said in the release.
Pritam Kad, an oil and gas analyst at GlobalData, stated in the release, “Sinopec Engineering replacing Samsung Engineering to partner with Tecnicas Reunidas for the five million ton per annum deep conversion refinery project in the Hassi Messaoud region of Algeria was a significant value booster, along with the support from JGC Indonesia $2.4 billion compression contract for the Tangguh LNG contract, Saipem’s $1.9 billion GranMorgu subsea development contract in Suriname, and Wuhuan Engineering and WeDo’s contract for an ammonia and urea plant in Angola”.
“These contracts were crucial in keeping the contract value stable despite the decline in volume,” Kad added.
In a release sent to Rigzone back in November, GlobalData said global oil and gas contract activity saw a 35 percent quarter on quarter decrease in total disclosed value from $55.3 billion in Q2 2024 to $35.7 billion in Q3 2024.
“Despite this, steady contract volumes, particularly in the Middle East, were driven by substantial projects such as Saipem’s $4 billion contract with QatarEnergy and multi billion dollar agreements from Saudi Aramco, providing some stability,” GlobalData stated in that release.
GlobalData’s latest oil and gas industry contract report at the time showed that overall contract volume came in at 1,519 contracts in Q3 2024 and 1,546 in Q2 2024, that release highlighted.
In that release, Kad said, “contract activity in the Middle East has provided little stability, helping to offset the overall value decline”.
“This is driven by Saipem’s $4 billion contract from QatarEnergy LNG for the North Field offshore compression program in Qatar and significant contracts worth over $3 billion from Saudi Aramco for Engineering, Procurement, Construction, and Installation (EPCI) work on the Zuluf, Safaniyah, and Marjan field development projects in Saudi Arabia,” Kad added.
In another release sent to Rigzone in February 2024, GlobalData said the oil and gas industry “faced a significant quarter on quarter decline of 16 percent in disclosed contract volume from 1,401 in Q3 2023 to 1,172 in Q4 2023”.
“However, despite this downturn, a marginal uptick in overall contract value hints at resilience during the challenging times,” the company added in that release.
GlobalData’s latest oil and gas industry contract report at the time revealed that overall contract value increased from $46 billion in Q3 2023 to $48 billion in Q4 2023, that release outlined.
In this release, Kad said, “the significant contract value in the quarter was largely driven by Tecnimont, Saipem, and NPCC’s significant contracts with ADNOC totaling $8.7 billion and $8.2 billion, respectively, for the Hail and Ghasha Development Project in Abu Dhabi, the UAE”.
“These contracts were pivotal in elevating the oil and gas contracts landscape, potentially boosting opportunities for further growth and collaboration in the region,” Kad added.
To contact the author, email andreas.exarheas@rigzone.com
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