In Q3 2018, the oil and gas industry reported 942 contracts, of which 873 were awarded contracts, says GlobalData, a leading data and analytics company.
The company’s latest report: ‘Quarterly Oil & Gas Industry Contracts Review’ states that the upstream sector reported 62% of the total awarded contracts, with 541 contracts in Q3 2018. The midstream sector recorded 187 contracts, representing 21% of the total awarded contracts, followed by 122 contracts in the downstream sector, representing 14% of the awarded contracts during the quarter.
Out of all the regions, EMEA recorded the majority of the contracts with 492 awarded contracts, representing around 56% of the total awarded contracts in Q3 2018.
Operations and maintenance represented 54% of the awarded contracts in Q3 2018, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 16%.
One of the top contracts during Q3 2018 was China State Construction Engineering Corporation’s (CSCEC) US$6.1bn contract for the construction of an oil refinery and petrochemical plant with a refining capacity of 8 million tons of oil, located in Suez Canal Economic Zone in Egypt, North Africa.
Other notable contracts during Q3 2018 included BGP’s US$1.6bn contract from Abu Dhabi National Oil Company (ADNOC) for the acquisition of continuous 3D seismic data covering an area up to 53,000 square kilometers (km2) in UAE. Hyundai Heavy Industries (HHI) and Samsung Heavy Industries’ (SHI) two separate contracts combined are worth US$1.5bn for the construction of three Very Large Ethane Carriers (VLECs) at HHI’s shipyard in Ulsan and SHI’s shipyard in Geoje, South Korea.
Others included Sinopec International Petroleum Services Corp’s (SIPSC) US$1.06bn services contract for 20 land drilling rigs in Kuwait; and the Tecnicas Reunidas and Target Engineering Construction Company consortium’s US$860 million contract from ADNOC LNG for the Engineering, Procurement, and Construction (EPC) of the second phase of the Integrated Gas Development Expansion (IGD-E) project in Abu Dhabi, UAE.
Information based on GlobalData’s report: Quarterly Oil & Gas Industry Contracts Review – Contract Award Activity Prominent in EMEA Region
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