Middle East leads global contract awards activity by value in Q3 2019

GlobalData Energy 31 October 2019 (Last Updated November 4th, 2019 16:19)

North America recorded the most contracts by volume, with 489 contracts reported, representing 35% of the global total in Q3 2019.

Middle East leads global contract awards activity by value in Q3 2019

Contracts awarded by Saudi Aramco, worth $18bn, and the Abu Dhabi National Oil Company (ADNOC), worth $3.6bn, were responsible for driving contract activity in the Middle East oil & gas sector in Q3 2019, according to GlobalData.

GlobalData’s global quarterly review of awarded contracts in the oil and gas industry found the upstream sector reported 1,035 contracts during Q3 2019, followed by midstream and downstream/petrochemical sector with 255 and 109 contracts, respectively, during the quarter.

In the Middle East, Saudi Aramco awarded 34 engineering, procurement and construction (EPC) contracts to expand production capacity at the Marjan and Berri offshore oilfields.

Meanwhile, ADNOC awarded contracts for the supply of a combined total of 1 million metric tons of casing and tubing to support onshore and offshore E&P activity in the United Arab Emirates.

North America recorded the most contracts by volume, with 489 contracts reported, representing 35% of the global total in Q3 2019, followed closely by Europe with 471 contracts, accounting for 34% of the total contracts.


Source: Equipment and Services Analytics © GlobalData

Operation and Maintenance (O&M) represented 61 per cent of the total contracts in Q3 2019, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 12 per cent.

Some key contracts were:

  • McDermott International and COOEC consortium’s US$3.5bn contract for the engineering, procurement, construction and installation (EPCI) of Gas-Oil Separation Plant (GOSP), and McDermott International’s US$1.7bn EPCI contract for offshore gas facilities and pipelines.
  • Saipem Onshore E&C division’s two contracts combined worth over US$3.5bn for the EPCI services for the development of the land facilities – expansion of Abu Ali Crude – oil gas separation plant and Khursaniyah Gas Plant (KGP) Gas facilities through the installation of new process units, construction of a gas treatment unit and another unit for the recovery of acid gases for sulfur production.
  • Tecnicas Reunidas’ US$3.36bn EPCI contract for gas processing plant, and recovery and fractionation facilities; and L&T Hydrocarbon Engineering (LTHE) and EMAS AMC consortium’s mega-contract valued worth over US$1bn for the EPCI of oil facilities, tie-in platforms, production deck modules (wellhead decks), subsea pipelines, and subsea cables as well as the replacement of existing control gears at offshore platforms, as part of increment development programme.