Oil and gas contract activity in Q2 2020 witnessed a continual decline in the number of contracts as companies are finding it difficult to proceed further due to stressed capital, crude oil prices decline and operational challenges due to Covid-19 outbreak. However, on the value front Q2 reported showcased a substantial increase that is largely attributed to Qatar Petroleum’s major multiple agreements worth $19.21bn with DSEM, Hyundai and Daewoo shipyards for construction of more than 100 LNG carriers, and $2.85bn contract with Hudong-Zhonghua Shipbuilding’s for 16 LNG carriers.
Upstream sector reported 658 contracts during Q2 2020, followed by midstream and downstream / petrochemical sector with 171 and 114 contracts, respectively during the quarter.
Europe recorded majority of the contracts, with 412 contracts in Q2 2020, followed by North America that has taken a deep dive and reported only 184 contracts during the quarter.
Operation and Maintenance (O&M) represented 52% of the total contracts in Q2 2020, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 15%.
Other notable contract includes Maire Tecnimont subsidiary, Tecnimont led consortium with MT Russia, Sinopec Engineering for $1.31bn contract from Amur GCC for the Engineering, Procurement, and Site Services (EPSS) including implementation of several polyolefin units, as part of the petrochemical development of the Amur Gas Chemical Complex (AGCC) located in the Amur region, Russia.