According to leading data and analytics company, GlobalData, the global oil and gas industry’s total contract value reached US$42 billion in Q2 2019 – an impressive 79 per cent increase on Q1’s value of US$23.4 billion.
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.
As outlined in GlobalData’s latest report, ‘Q2 2019 Global Oil & Gas Industry Contracts Review’, the upstream sector constituted 71 per cent of the total contracts awarded, with a total of 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.