BAKU, Azerbaijan, Feb.13
By Leman Zeynalova – Trend:
Despite an insignificant fall in the number of oil and gas industry contracts in the fourth quarter of 2020 compared to the previous quarter, the value of contracts grew by around 28 percent from $17.58 billion to $22.55 billion, Trend reports with reference to GlobalData.
The number of contracts in the upstream sector stood at 815 in Q4 2020, while midstream sector witnessed189 contracts. The major part of those contracts accounted for Europe with 506 contracts, followed by Asia and North America with 233 and 198 contracts, respectively, said the company.
Pritam Kad, oil and gas Analyst at GlobalData noted that with decreasing concern related to crude prices and the pandemic, contract activity is now relatively stable, which shows that the industry is trying to cope with recent upheaval in commodity markets and is making adjustment for long-term sustainability.
Significant contracts in Q4 2020 included Samsung Ingenieria Manzanillo and Asociados Constructores’ $3.6bn EPC contract for various units of Dos Bocas refinery project in Mexico; and Samsung Engineering’s $1.07bn contract for the provision of licensor, engineering, procurement, construction and commissioning (LEPCC) services for a methanol production facility in Bintulu, Sarawak, Malaysia.
“These significant contracts will allow Samsung to reinforce its position with engineering capabilities and thus become better placed to garner future EPC projects in the refining and petrochemical market,” he added.
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