In Q2 2019, the global oil & gas industry reported a surge in terms of the reported contract values to reach around $42 billion in Q2 2019, as compared to the reported values of $23.4 billion in Q1 2019.

Oil & gas contracts

However, contracts over the period were in slight decline with 1,283 issued during Q2 2019, compared to 1,453 in Q1 2019. The upstream sector reported 71% of the total contracts that were awarded, with 858 contracts. The midstream and downstream/petrochemical sector recorded 245 and 100 awarded contracts, respectively during the quarter.

Europe recorded the most number of contracts with 471 reported, representing 37% of the total for Q2 2019, followed by North America with 421 contracts, accounting for 33% of the total contracts.

Contracts by scope and count, Q2 2019

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Operation and Maintenance (O&M) represented 60 per cent of the total contracts in Q2 2019, followed by contracts with multiple scopes, such as Construction , design and engineering, installation, O&M, and procurement, which accounted for 12 per cent.

Bechtel, CCS JV

Midstream sector recorded a contract value surge, which is attributed to two of the notable contracts during Q2 2019 – Bechtel Oil, Gas and Chemicals’ $9.57 billion Engineering, Procurement, and Construction (EPC) contract from NextDecade for the Phase I of Rio Grande LNG project comprising three liquefaction trains each with 5.87 million tonnes per annum (mtpa) capacity, two 180,000 cubic meters (m3) storage tanks and two marine berths in Brownsville, Texas, US, and another being Saipem , McDermott International , and Chiyoda joint venture, CCS JV’s $8 billion EPC contract from Anadarko Mozambique Area 1 for the LNG trains, LNG storage tanks, condensate storage, marine jetty and associated utilities and infrastructure for the development of onshore LNG Park in Mozambique.

Other notable contracts during Q2 2019 included China National Chemical Engineering No 7 Construction’s (CNCEC) approximately $5 billion contract for the EPC services as part of the development of Payaha project in Russia; Sapura Energy and subsidiaries’ contracts with multiple operators in the upstream sector – EPC offshore structures, provision of tender assist drilling rigs, provision of Remotely Operated Vehicle (ROV) inspection services, Engineering, Procurement, Construction and Installation (EPCI) for the riser hose replacement at field, provision of subsea services, Light Well Intervention (LWI), wireline and slickline operations, installation of subsea pipelines, EPCI for offshore rigid pipelines; and Hyundai Engineering & Construction’s $2.45 billion contract from Basrah Oil for the construction of a common seawater treatment facility to support water injection process to increase pressure and crude production from oil fields in southern Iraq.