Oil and gas contract activity in Q3 2020 witnessed a marginal increase in the number of contracts. However, the reported contract value seen significant decrease, primarily this difference was due to high value US$19.21 billion contract agreement reported by Qatar Petroleum in last quarter. The significant contract in Q3 2020 was JGC’s Engineering, Procurement, Construction and Commissioning (EPCC) work for the Fluid Catalytic Cracking unit (FCC) of 34,500 barrels per day (bpd), Vacuum Distillation Unit (VDU) of 55,000bpd and Diesel Desulfurization unit of 40,000bpd for the upgrade of South Refineries Company’s Basra refinery project in Al-Basrah, Iraq.
Contracts by Scope and Count, Q2 2020
Upstream sector reported 758 contracts during Q3 2020, followed by midstream and downstream/petrochemical sector with 205 and 183 contracts, respectively during the quarter.
Europe recorded majority of the contracts, with 495 contracts in Q3 2020, followed by Asia and North America with 240 and 215 contracts, respectively during the quarter.
Operation and Maintenance (O&M) represented 50 percent of the total contracts in Q3 2020, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 15 percent.