In Q1 2020, Oil and gas contract activity witnessed a significant slow-down in the number of contract and contracts value, which is largely attributed to decline in crude oil prices and reduce demand amid COVID-19 outbreak affecting the overall oil and gas market. Some of the key contracts awarded during Q1 2020 were Enppi, TechnipFMC and Petrojet’s US$2.5 billion contract for the Engineering, Procurement and Construction (EPC) of mazut hydrocracking complex with 2.8 mtpa capacity in Assiut, Egypt, and MAPNA Group’s 10-year Iranian Petroleum Contract (IPC) framework agreement worth US$1.38 billion for the provision of development and operation including upgrading and construction works on facilities to increase production and exploitation of the Parsi and Paranj fields in Iran.
Upstream sector reported 735 contracts during Q1 2020, followed by midstream and downstream/petrochemical sector with 155 and 118 contracts, respectively during the quarter.
North America recorded majority of the contracts, with 347 contracts in Q1 2020, followed by Europe with 328 contracts during the quarter.
Operation and Maintenance (O&M) represented 56 percent of the total contracts in Q1 2020, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 15 percent.
Other notable contracts during Q1 2020 were: MAPNA Group’s 10-year IPC framework agreement worth US$1.38 billion for the provision of development and operation including upgrading and construction works on facilities to increase production and exploitation of the Parsi and Paranj fields in Iran; Sinopec Engineering’s US$835.8 million contract for the EPC services related to the 1,200,000 tpa ethylene expansion project and 15,000,000 tpa Propylene Oxide/Styrene Monomer (PO/SM) facilities at the Ningbo Complex in China; and Daewoo Engineering & Construction’s US$500 million contract from CCS JV, a joint-venture of Saipem, McDermott International, and Chiyoda, for the construction of two LNG trains with capacity of 12 mtpa in Afungi Industrial Complex in northern Mozambique.