Oil and gas contract activity in Q1 2022 witnessed an increase in the number of contracts, though decrease in overall contracts value. Notable contracts during the quarter in terms of the contract value include Saudi Aramco’s award of multiple contracts for the expansion of Zuluf oil field in Saudi Arabia, including engineering, procurement and construction (EPC) work to JGC Holding’s, ranging between $2bn and $2.5bn for two sets of oil and gas separation units, gas compression units and onshore processing facilities, such as crude oil processing units, as well as EPC for injection water pumps, water-oil separation units, thermal oil systems, electrical and non-electrical facilities, and other related facilities; and contract to National Petroleum Construction Company (NPCC ) for the provision of construction work associated with fourth and fifth Zuluf packages, wherein fourth package contract release purchase order (CRPO) 82 includes at least 12 oil-handling wellhead topsides, two oil tie-in platforms, and one electrical distribution platform, while the fifth package CRPO 83 include up of 12 additional oil-handling wellhead topsides, two oil tie-in platforms, as well as infield pipelines and cables at the Zuluf marine field in Saudi Arabia.

The upstream sector reported 1,161 contracts during Q1 2022, followed by midstream and downstream/petrochemical sectors with 263 and 145 contracts, respectively, during the quarter.

Europe recorded the majority of the contracts, with 604 contracts in Q1 2022, followed by Asia and North America with 359 and 336 contracts, respectively, during the quarter.

Operation and Maintenance (O&M) represented 56% of the total contracts in Q1 2022, followed by procurement scope with 16%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 14%.