The global oil and gas industry experienced a 15 per cent quarter-on-quarter decrease in the total number of contracts, from 1,596 in Q3 2024 to 1,353 in Q4 2024.
However, the overall contract value remained relatively stable at US$39.2 billion in Q4 2024, compared to US$38.8 billion in Q3 2024, according to a recent report by GlobalData.
The stability in contract value was primarily driven by the announcement of major contracts in Africa.
Notably, Tecnicas Reunidas and Sinopec Engineering secured a US$4 billion contract for a new deep conversion oil refinery project in Algeria’s Hassi Messaoud region.
Additionally, Wuhuan Engineering and WeDo were awarded a US$1.4 billion contract for an ammonia and urea plant project in Angola.
Pritam Kad, Oil and Gas Analyst at GlobalData, highlighted the significance of these contracts, stating: “Sinopec Engineering replacing Samsung Engineering to partner with Tecnicas Reunidas for the 5 mmtpa deep conversion refinery project in Algeria was a significant value booster.
“This, along with other major contracts, was crucial in maintaining the contract value stability despite the decline in volume.”
Other notable contracts included JGC Indonesia’s US$2.4 billion compression contract for the Tangguh LNG project and Saipem’s US$1.9 billion GranMorgu subsea development contract in Suriname.
The report also revealed that Operation and Maintenance (O&M) contracts represented 50 per cent of the total contracts in Q4 2024, followed by procurement scope at 30 per cent, and contracts with multiple scopes accounting for 10 per cent.
Further significant agreements included Bram Offshore and Starnav Servicos Maritimos’ US$2.74 billion construction and charter contract from Petrobras for 12 Platform Supply Vessels.
Additionally, Saipem secured a US$1.9 billion contract from TotalEnergies EP Suriname for the EPC, supply, pre-commissioning, and commissioning assistance for the Subsea Umbilicals, Risers, and Flowlines (SURF) package for the GranMorgu project in Suriname.
These contracts demonstrate the industry’s continued investment and expansion in key global oil and gas projects, despite the overall decrease in contract volume.
The stability in contract value, particularly driven by major projects in Africa, highlights the sector’s resilience and ongoing development in strategic regions.
