Global number of oil and gas contracts fall by 7% in Q3 2022

The overall number of contracts in the oil and gas industry declined by 7% in Q3 2022, decreasing from 1,662 in the previous quarter to 1,542 in the current one, GlobalData, a data and analytics company, has said.

However, in a report, ‘Oil and Gas Industry Contracts Analytics by Sector (Upstream, Midstream and Downstream), Region, Planned and Awarded Contracts and Top Contractors, Q3 2022’, the data company pointed out that the contract value reported saw an increase, from US$38.8 billion in Q2 2022 to US$47.7 billion in Q3.

Pritam Kad, Oil & Gas Analyst at GlobalData, commented: “Keppel Shipyard helped to keep the momentum during Q3 2022 with its two Engineering, Procurement, and Construction (EPC) contracts. Combined, these contracts are worth $8.76 billion for the P-80, P-82 and P-83 Floating Production, Storage, and Offloading (FPSO), which are destined for Petrobras’ Buzios field in the Santos Basin, Brazil.”

In September 2022, Brazil’s Petrobras awarded Keppel Offshore & Marine a contract worth nearly US$2.8 billion for the P-83 floating production, storage, and offloading vessel P-83 FPSO. This was a repeat order following the contract for the FPSO P-80 and is the third FPSO that Keppel O&M is building for Petrobras for the Buzios field.

When completed, the FPSOs will be among the largest floating production units in the world. The P-83 has a production capacity of 225,000 barrels of oil per day (BOPD), water injection capacity of 250,000 bpd, 12 million cubic metres of (Sm3/d) of gas processing per day and a storage capacity of two million barrels of oil.

Notable Contracts

Operation and Maintenance (O&M) represented 53% of the total contracts in Q3 2022, GlobalData said, adding that these were followed by procurement scope, with 24%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, that accounted for 12%.

Other notable contracts, apart from Keppel Shipyard, includes ADNOC drillings’ two contracts worth a combined $3.4 billion, as well as significant five framework agreements with majors such as Schlumberger, Halliburton, Weatherford, Al Ghaith Oilfield and Al Mansoori Directional Drilling. 

China Merchants Energy Shipping also registered a key $1.81 billion charter contract from Sinochem Petroleum Shipping Singapore for three 175,000 cubic meters (m3) capacity Liquified Natural Gas (LNG) vessels, the company concluded.