BAKU, Azerbaijan, Nov.24
By Leman Zeynalova – Trend:
Oil and gas contracts globally have declined in number and value in the third quarter of 2021, Trend reports with reference to GlobalData.
The company estimates that the number of oil and gas contracts fell from 1,612 in Q2 2021 to 1,523 contracts in Q3 2021. The value of these contracts decreased slightly from $30.89 billion in Q2 to $30.24 billion in Q3. The key contributor in Q3 was Consolidated Contractors Company’s $2.3 billion subcontract from Chiyoda and Technip Energies joint venture for the construction of key process units, as part of the larger $12.2 billion contract, for the North Field East LNG in Qatar.
As such, the industry recorded a nominal 6 percent decrease in the number of contracts and a 2 percent decrease in disclosed contract value in Q3 2021.
Pritam Kad, Oil & Gas Analyst at GlobalData, noted that improving crude oil prices and global energy demand encouraged major producers to increase their spend on delayed projects, as well as focus on proposed brownfield and greenfield projects.
In terms of scope, operation and maintenance (O&M) represented 41 percent of the total contracts in Q3 2021, followed by procurement scope with 19 percent, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 16 percent.
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