Marginal increase in global oil and gas contract activity through third quarter
The global oil and gas industry has witnessed a marginal increase in the number of oil and gas contracts from 1,104 in Q2 2020 to 1,136 in Q3 2020. This is in spite of challenges such as crude oil process and the COVID-19 outbreak, says GlobalData.
The industry recorded contract value of US$14.16bn in Q3 2020, as compared to the previous quarter that reported US$32.51bn in value. Primarily this difference was due to a high value US$19.21bn contract agreement reported by Qatar Petroleum in Q2 2020.
The key contract in Q3 2020 was JGC's Engineering, Procurement, Construction and Commissioning (EPCC) work for the 34,500 barrels per day (bpd) FCC unit, 55,000 bpd VDU unit and 40,000 bpd Diesel Desulfurization unit for the upgrade of Basra refinery project in Al-Basrah, Iraq.
GlobalData's latest report, ‘', states that the upstream sector reported 758 contracts in Q3 2020, followed by the midstream and downstream/petrochemical sector with 205 and 183 contracts, respectively, during the quarter.
Europe recorded majority of the contracts, with 495 contracts in Q3 2020, followed by Asia and North America with 240 and 215 contracts, respectively, during the quarter.
Operation and Maintenance (O&M) represented 50% of the total contracts in Q3 2020, followed by contracts with multiple scopes such as construction, design and engineering, installation, O&M and procurement, which accounted for 15%.