GlobalData: oil and gas contract value sustains despite 22% drop in volume during 2023

Despite this decrease, the industry managed to maintain momentum in contract value, primarily fueled by contracts for major projects such as North Field South LNG, Golden Pass LNG, Hail and Ghasha field, Agogo FPSO, and the expansion of the Amiral petrochemicals facility, amidst challenging market conditions, reveals GlobalData.

GlobalData’s latest report, "Oil and Gas Industry Annual Contracts Analytics by Region, Sector, Planned and Awarded Contracts and Top Contractors,” reveals that the total disclosed contract value kept momentum at US$187.48 billion in 2023, only slightly lower than the US$189.94 billion reported in 2022.

“This resilience is attributed to high-value contracts from notable contractors such as Technip Energies and Consolidated Contractors' that secured US$10 billion EPCC contract for QatarEnergy’s North Field South LNG project. Tecnimont’s US$8.7 billion, Saipem and NPCC Consortiums’ US$8.2 billion EPC contracts for the Hail and Ghasha Development Project in the UAE, Yinson Holdings’ US$5.3 billion Agogo FPSO charter and maintenance, and Hyundai’s US$5 billion EPC work for Amiral petrochemicals facility expansion in Saudi Arabia,” commented Pritam Kad, Oil and Gas Analyst at GlobalData.

Operations and maintenance (O&M) represented the majority with 51% of the total contracts in 2023, followed by procurement scope at 25%, and multiple scopes, including construction, design and engineering, installation, procurement, O&M, and asset retirement, accounted for around 12% of the contracts.

The standout contracts included Technip Energies and CCC JV’s US$10 billion EPCC contract for QatarEnergy’ two mega LNG trains with a capacity of 8 million tpy each, along with associated facilities as part of the North Field South (NFS) project in Qatar; Tecnimont’s approximately US$8.7 billion EPC, and Saipem and NPCC’s US$8.2 billion EPC for processing plants, drilling centres, pipeline and utilities infrastructure for the Hail and Ghasha Development Project in Abu Dhabi, UAE.

Additionally, Yinson Holdings’ US$5.3 billion contract for Agogo FPSO charter and operation and maintenance work, and Hyundai’s US$5 billion EPC work for mixed feed cracker (MFC) and utilities, flares and interconnecting facilities at the Amiral petrochemicals facility expansion in Saudi Arabia.

“The oil and gas industry's ability to secure high-value contracts for major projects underscores its enduring strength and adaptability in navigating turbulent times,” concluded Kad.

Read the article online at: https://www.lngindustry.com/special-reports/20032024/globaldata-oil-and-gas-contract-value-sustains-despite-22-drop-in-volume-during-2023/