The overall number of contracts in the oil and gas industry fell by 16% in the second quarter of 2022, according to GlobalData. However, the data and analytics company noted that contract values stayed level.
GlobalData’s new report, which encompasses upstream, midstream and downstream, noted that the number of contracts decreased from 1,717 in Q1 2022 to 1,446 in Q2 2022. Meanwhile, contract value remained stable, at $37.7 billion in Q2 2022 compared with $37.6 billion in Q1 2022.
Pritam Kad, Oil & Gas Analyst at GlobalData, noted that the value of oil and gas industry contracts remained stable thanks to Dalian Petrochemical’s $4.67 billion engineering, procurement and construction (EPC) contract for a deep conversion oil refinery in Pakistan’s Larkana Sindh province.
Operation and maintenance (O&M)accounted for 49% of all contracts in Q2 2022, followed by procurement contracts with 22%. Contracts that featured multiple scopes, including construction, design and engineering, installation, O&M and procurement aspects, represented 12% of total oil and gas contracts.
Besides Dalian Petrochemical’s EPC, contracts of note during the quarter included Samsung Heavy Industries’ $3 billion contract for the construction of LNG carriers; and Baker Hughes Norge, Halliburton, and Schlumberger Norge retaining contract for integrated drilling and well services on Equinor-operated fields, which included 18 fixed platforms and 12 mobile rigs.