The global oil and gas industry’s contract value increased from $35.4 billion in Q1 2023 to $56.7 billion in Q2 2023 driven by major contracts in the Middle East, according to a new report by GlobalData.
A 60% quarter-on-quarter increase in contract activity was mainly driven by a mega contract for Qatar’s North Field South (NFS) LNG project, reveals GlobalData.
Pritam Kad, Oil and Gas Analyst at GlobalData, comments: “The big boost on the value front is attributed to Technip Energies and Consolidated Contractors Company (CCC) joint venture’s landmark $10 billion engineering, procurement, construction and commissioning (EPCC) contract to build 16 million tonnes per year North Field South (NFS) LNG project in Qatar.”
Operation and Maintenance (O&M) represented 54% of the total contracts in Q2 2023, followed by procurement scope with 18%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, accounted for 11%.
Significant oil and gas contracts of the quarter
Aside from QatarEnergy’s contract to build two mega LNG trains and associated facilities in Qatar’s North Field South (NFS) project, other notable contracts include Hyundai Engineering & Construction’s two lump-sum turn-key contracts from Saudi Aramco and TotalEnergies, covering the detailed design, Engineering, Procurement, and Construction (EPC) for the Amiral petrochemicals facility expansion in Jubail Industrial City, Saudi Arabia.
Maire Tecnimont subsidiaries also secured two lump-sum turn-key contracts from Saudi Aramco and TotalEnergies for the EPC of Derivatives units and High-Density Polyethylene (HDPE) units at the Amiral petrochemicals facility expansion.