Global oil & gas industry’s total contract value up by 79%
Baku, Azerbaijan, Aug.12
By Leman Zeynalova – Trend:
The global oil and gas industry’s total contract value reached $42 billion in Q2 2019, a massive 79% increase on Q1’s value of $23.4 billion, Trend reports citing GlobalData, a leading data and analytics company.
Pritam, Oil & Gas Analyst at GlobalData, believes that 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.
GlobalData’s latest report ‘Q2 2019 Global Oil & Gas Industry Contracts Review’, reveals that the upstream sector constituted 71 percent of the total contracts awarded, with 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 $9.57bn agreement with NextDecade for the Rio Grande liquefied natural gas (LNG) project in Texas and Saipem, McDermott International and Chiyoda - CCS JV’s $8bn contract with Anadarko Petroleum for the development of an onshore LNG park in Mozambique,” reads the report.
Operation and Maintenance (O&M) represented 60 percent 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 percent, according to GlobalData.
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