Oil and gas contract activity remained subdued in 2020, with the industry recording a decrease in the number of contracts and disclosed contract value from 6,971 contracts with $151.06bn in 2019 to 5,014 contracts and $94.29bn in 2020. The significant drop in contracts and contract value was primarily attributed to the slowdown in the industry following the crude oil prices and Covid-19 pandemic during 2020, which saw a reduction in capital expenditure by the producing companies and slower activity.
Contracts by Scope and Count, 2020
The majority of contracts were recorded during the pre-Covid quarter – Q1 2020 with 1,441 contracts. On the disclosed value front, Q2 2020 contributed the most with $34bn during the year. The upstream sector reported 3,401 contracts during 2020, followed by the midstream sector with 949 contracts during the year.
Europe recorded the majority of the contracts with 1,999 contracts in 2020, followed by North America and Asia with 1,151 and 1,007 contracts respectively during the year.
Operation and maintenance (O&M) represented 51% of the total contracts in 2020, followed by contracts with procurement scope and multiple scopes such as construction, design, and engineering, installation, O&M, and procurement, which accounted for around 14% respectively.