Global Oil and Gas Industry’s Contract Hit $42 Billion in Q2 2019

Published August 14th, 2019 - 08:51 GMT
Operation and Maintenance (O&M) represented 60 per cent of the total contracts in Q2 2019
Operation and Maintenance (O&M) represented 60 per cent of the total contracts in Q2 2019. (Shutterstock)
Highlights
The upstream sector constituted 71 per cent of the total contracts awarded, with 858 contracts.

The global oil and gas industry’s total contract value reached $42 billion in Q2 2019, a massive 79 per cent increase on Q1’s value of $23.4 billion according to GlobalData, a leading data and analytics company.


Pritam, Oil & Gas Analyst at GlobalData, said: “This rise occurred despite there being a slight decline in the number of contracts from 1,453 in Q1 to 1,283 in Q2, 2019.”

GlobalData’s latest report: ‘Q2 2019 Global Oil & Gas Industry Contracts Review’ said that the upstream sector constituted 71 per cent of the total contracts awarded, with 858 contracts. The midstream and downstream/petrochemical sector recorded 245 and 100 contracts, respectively.

The increase in contract value was largely driven by engineering, procurement and construction (EPC) contracts in the midstream sector such as Bechtel’s $9.57 billion agreement with NextDecade for the Rio Grande liquefied natural gas (LNG) project in Texas and Saipem, McDermott International and Chiyoda - CCS JV’s $8 billion contract with Anadarko Petroleum for the development of an onshore LNG park in Mozambique.

Operation and Maintenance (O&M) represented 60 per cent of the total contracts in Q2 2019, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 12 per cent.

Europe constituted 37 per cent of total contracts in Q2, with a total of 471, followed by North America, which accounted for 33 per cent with 421


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