Oil and gas industry “resilient” as contract value sustains amidst drop in volume in 2023, GlobalData reports
(WO) – The oil and gas industry saw a significant decline of 22% in disclosed contract volume from 7,550 contracts in 2022 to 5,915 in 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, a leading data and analytics company.
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 $187.48 billion in 2023, only slightly lower than the $189.94 billion reported in 2022.
Pritam Kad, Oil and Gas Analyst at GlobalData, commented, “This resilience is attributed to high-value contracts from notable contractors such as Technip Energies and Consolidated Contractors' that secured $10 billion EPCC contract for QatarEnergy’s North Field South LNG project. Tecnimont’s $8.7 billion, Saipem and NPCC Consortiums’ $8.2 billion EPC contracts for the Hail and Ghasha Development Project in the UAE, Yinson Holdings’ $5.3 billion Agogo FPSO charter and maintenance, and Hyundai’s $5 billion EPC work for Amiral petrochemicals facility expansion in Saudi Arabia.”
Oil and gas contracts. 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 $10 billion EPCC contract for QatarEnergy’s two mega LNG trains with a capacity of 8 MMtpa each, along with associated facilities as part of the North Field South (NFS) project in Qatar; Tecnimont’s approximately $8.7 billion EPC, and Saipem and NPCC’s $8.2 billion EPC for processing plants, drilling centers, pipeline and utilities infrastructure for the Hail and Ghasha Development Project in Abu Dhabi, UAE.
Additionally, Yinson Holdings’ $5.3 billion contract for Agogo FPSO charter and operation and maintenance work, and Hyundai’s $5 billion EPC work for Mixed Feed Cracker (MFC) and Utilities, Flares & Interconnecting facilities at the Amiral petrochemicals facility expansion in Saudi Arabia.
Kad concludes, “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.”
Lead image: Hail and Ghasha Development Project (Source: ADNOC)
