Following relatively stable activity in the first quarter of 2021, the oil and gas industry recorded a 7 per cent decrease in the number of oil and gas contracts and a significant decrease in disclosed contract value in the second quarter of 2021, according to a new GlobalData report.
GlobalData’s latest report, Q2 2021 Global Oil & Gas Industry Contracts Review, details that the number of oil and gas contracts declined from 1,453 in the first quarter to 1,353 contracts in the second quarter.
The value of these contracts also decreased to US$27.6 billion in the second quarter from US$46.4 billion in the first, wherein the significant difference maker was Chiyoda and Technip Energies’ US$12.2 billion contract for North Field East LNG which was signed in the first quarter.
Oil & Gas Analyst at GlobalData, Pritam Kad, said: “The decline in the number of contracts in Q2 2021 looks temporary and will begin to recover, as the industry foresees an improvement in contracts activity with business outlook, crude oil prices and COVID-19 restrictions now easing.”
Operation and Maintenance (O&M) recorded 47 per cent of the total contracts in the second quarter, followed by procurement scope with 18 per cent, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 16 per cent.
Some notable contracts included Saipem and Daewoo Shipbuilding & Marine Engineering (DSME) joint venture, as well as Keppel Shipyard’s contracts from Petrobras for the construction of Buzios VIII (P-79) and Buzios VII (P-78) FPSO for deployment on the Buzios field.
Brazil, and McDermott International and Sinopec International Petroleum Service consortium’s US$2 billion future Engineering, Procurement, Construction, and Commissioning (EPCC) contract from Total for the EPCC services for Tilenga development in the Lake Albert Basin, Republic of Uganda.