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Value of oil and gas contract decrease significantly amid war in Ukraine

Oil&Gas Materials 17 May 2022 12:43 (UTC +04:00)
Value of oil and gas contract decrease significantly amid war in Ukraine
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, May 17. Overall value of oil and gas contracts has decreased significantly from $61.16 billion in Q4 2021 to $36.93 billion in Q1 2022, Trend reports with reference to GlobalData.

“At the start of Q1 2022, global oil and gas industry contract activity was stifled due to the Russia-Ukraine conflict. However, in the second half of the quarter a minor increase in the number of contracts was reported. Unfortunately, the industry was unable to maintain its position in terms of contract value compared to the previous quarter,” the company said in its report.

The report says that contracts in the oil and gas industry could only float due to the sheer uncertainties surrounding it, including the ongoing Russia-Ukraine crisis, rising prices, and project cost escalation.

The number of contracts saw a minor increase from 1,452 in Q4 2021 to 1,546 in Q1 2022.

In terms of single scopes, operation and maintenance (O&M) represented 56 percent of the total contracts in Q4 2021, followed by procurement with 16 percent, and contracts with multiple scopes, such as construction, design and engineering, installation, procurement, and O&M accounted for 14 percent.

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