The roller coaster ride during the COVID-19 pandemic appears to be coming to an end, with contract activity returning to normal for the global oil and gas industry, despite the ongoing Russia-Ukraine conflict and volatility in crude oil prices. As a result, the oil and gas industry witnessed a year-on-year increase of 3% in overall contract value in 2022, despite a 4% decrease in contract volume, reveals GlobalData, a data and analytics company.
GlobalData’s latest report, “Oil and Gas Industry Annual Contracts Analytics by Region, Sector (Upstream, Midstream, and Downstream), Planned and Awarded Contracts, and Top Contractors,” reveals that the overall contract value increased from USD 178.86bn in 2021 to USD 183.63bn in 2022, though contract volume saw a marginal decrease from 6,972 in 2021 to 6,668 in 2022.
Operation and Maintenance (O&M) represented 50% of the total contracts in 2022, followed by contracts related to procurement accounting for 24%. Contracts involving multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, accounted for around 13%.
The other major contracts include Dalian Petrochemical’s USD 4.67bn contract from Ameer Group for the engineering, procurement, and construction (EPC) of the Pakistan State Oil deep conversion oil refinery in the Larkana Sindh province of Pakistan; and Saipem’s USD 4.5bn contract from Qatargas for the engineering, procurement, fabrication, and installation of two natural gas compression facilities for the North Field Production Sustainability Offshore Compression Complex Project – EPC 2, offshore north-east coast of Qatar.
Abu Dhabi National Oil Company (ADNOC)’s three framework agreements worth AED14.68bn (USD 4bn) with ADNOC Drilling, Schlumberger, and Haliburton for the provision of integrated drilling fluids services (IDFS) in the UAE was also one of the significant contributors to the overall contract value in 2022.