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Bechtel and CCS JV led surge in global oil and gas contracts value to US$42bn in 2Q19, says GlobalData

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Hydrocarbon Engineering,

The global oil and gas industry’s total contract value reached US$42 billion in 2Q19, a massive 79% increase on 1Q19’s value of US$23.4 billion according to GlobalData, the data and analytics company.

Pritam Kad, Oil & Gas Analyst at GlobalData, said, “This rise occurred despite there being a slight decline in the number of contracts from 1453 in 1Q19 to 1283 in 2Q19.

GlobalData’s latest report, ‘Q2 2019 Global Oil & Gas Industry Contracts Review’, reveals that the upstream sector constituted 71% of the total contracts awarded, with 858 contracts. The midstream and downstream/petrochemical sector recorded 245 and 100 contracts, respectively. The increase in contract value was largely driven by engineering, procurement and construction (EPC) contracts in the midstream sector such as Bechtel’s US$9.57 billion agreement with NextDecade for the Rio Grande LNG project in Texas and Saipem, McDermott International and Chiyoda - CCS JV’s US$8 billion contract with Anadarko Petroleum for the development of an onshore LNG park in Mozambique.

Operation and Maintenance (O&M) represented 60% of the total contracts in 2Q19, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 12%.

Europe constituted 37% of total contracts in 2Q19, with a total of 471, followed by North America, which accounted for 33% with 421.

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