BAKU, Azerbaijan, May 12
By Leman Zeynalova - Trend:
Oil and gas contracts around the world have declined in number, while increasing in value in the first quarter of 2021, as compared to the fourth quarter of 2020, Trend reports with reference to GlobalData.
As such the number of oil and gas contracts dropped from 1,330 in Q4 2020 to 1,282 in Q1 2021, while the value rose from $25.5 billion to $29.3 billion.
Around 52 percent of the inked contracts accounted for operation and maintenance, while 18 percent of them were signed for procurement.
The notable contracts include BW Offshore’s US$4.6bn contract for Engineering, Procurement, Construction, Installation (EPCI), lease and operation of Barossa Floating Production, Storage and Offloading (FPSO), offshore Darwin in Australia, and Arabian Industries and Special Technical Services’ US$4bn contract from Petroleum Development Oman (PDO), spanning the execution of maintenance, integrity, field improvement proposals, turnaround activities, and the delivery of brownfield projects in the North and South of its concession area in Oman.
World oil markets are rebalancing after the Covid 19 crisis spurred an unprecedented collapse in demand in 2020, but they may never return to “normal”.
Rapid changes in behaviour from the pandemic and a stronger drive by governments towards a low-carbon future have caused a dramatic downward shift in expectations for oil demand over the next six years. This is forcing hard decisions on oil-producing countries and companies, which are reluctant to leave resources untapped or to install new capacity that would only sit idle.
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