In Q4 2019, the global oil and gas industry witnessed contracts activity was driven by some of the high-value contracts that contributed significantly, mainly China National Chemical Engineering No 7 Construction’s $13.25 billion contract from Baltic Chemical Complex. This covers the FEED and EPC services for two Ethylene cracking, six Polyethylene, two Linear Alpha Olefins cracking units and offsite facilities at Ust-Luga in Russia.
Yinson Production subsidiaries’ two contracts, with a combined worth of $5.4 billion, from Petrobras also contributed significantly. This is for the charter and operation and maintenance services of the Marlim 2 FPSO, destined for operations at Marlim and Voador field, offshore Brazil.
The upstream sector reported 907 contracts during Q4 2019, followed by the midstream and downstream / petrochemical sector with 188 and 124 contracts respectively during the quarter.
North America recorded 379 contracts, followed closely by Europe with 378 contracts, each representing 32% of the total contracts in Q4 2019.
Operation and maintenance (O&M) represented 59% of the total contracts in Q4 2019, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 14%.
Other notable contracts during Q4 2019 included the JGC, Fluor, and TechnipFMC (JFT) consortium’s $3.73 billion contract from Mozambique Rovuma Venture. This is for the EPC of LNG production complex comprising of two natural gas liquefaction trains with a total LNG nameplate capacity of 15.2 million tonnes per annum (mpta), as well as associated onshore facilities in Cabo Delgado, Mozambique.
Samsung Engineering and Tecnicas Reunidas received a $3.7 billion contract from Sonatrach for the EPC of a new deep conversion oil refinery, with a capacity of five mpta, in Haoud El Hamra, in the Hassi Messaoud region of Algeria.
Saipem received a $1.7 billion contract for the provision of onshore drilling services using 19 land-rigs, with power between 1,500 horsepower (hp) and 2,000hp, in the Middle East, as well as offshore drilling activities in Norway and Angola.