EMEA region leads contract award activity in the oil and gas industry in Q1 2019

08 May, 2019

In the first quarter of 2019, the oil and gas industry reported 242 contracts, of which 1178 were awarded contracts, according to a new report from GlobalData.

With a total of 569 recorded contracts, the Europe, Middle East and Africa (EMEA) region had the highest amount over the period, representing roughly 48 per cent of the total awarded contracts in Q1 2019.

The Americas region followed closely behind with 66 contracts, accounting for 31 per cent of the total awarded contracts.

GlobalData’s latest report, Quarterly Oil & Gas Industry Contracts Review, states that the upstream sector reported 73 per cent of the total awarded contracts, with 862 contracts.

The midstream sector recorded 156 contracts, representing 13 per cent of the total awarded contracts, followed by 141 contracts in the downstream sector – representing 12 per cent of the awarded contracts during the quarter.

Operations and maintenance represented 64 per cent of the awarded contracts in Q1 2019, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 11 per cent.

One of the high value contracts was National Marine Dredging Company’s US $1.36 billion contract from Abu Dhabi National Oil Company for the provision of dredging, land reclamation and marine construction of artificial islands and causeways, as well as to expand the existing Al Ghaf island to drill and produce gas from the first phase development of the Ghasha Concession comprising Hail, Ghasha, Dalma, Nasr, and Mubarraz offshore sour gas fields, in Rub al-Khali Basin, Abu Dhabi, UAE.

Other notable contracts during Q1 2019 included Saipem’s two contracts worth US$1.3 billion from Saudi Arabian Oil Company (Saudi Aramco) for design, engineering, procurement, construction and installation services, in addition to the laying of pipelines, subsea cables and umbilicals, platform decks and jackets for the development of Berri and Marjan fields in Arabian Gulf, offshore Saudi Arabia.

Then there was Petrofac’s lump-sum contract worth around US$1 billion from Groupement Isarene for engineering, procurement, construction and commissioning services, as well as start-up and performance testing for the Ain Tsila field development project in Algeria.

Another leader over the period was McDermott International, along with its joint venture partners Chiyoda International’s mega-contract in excess of US$1 billion from Golden Pass Products for the engineering, procurement, construction and commissioning of three (approximately) 5.2 million tonnes per annum liquefied natural gas trains in Sabine Pass, Texas, US.