The upstream sector accounted for a reported 60% of the total awarded contracts, with 528 contracts in Q2 2018. The midstream sector recorded 173 contracts, representing 20% of the total awarded contracts, followed by 145 contracts in the downstream sector, representing 16% of the contracts during the quarter.
The notable contracts during the quarter, included Samkang S&C’s $1.9bn contract for the construction of four Very Large Crude Carriers (VLCCs); Renaissance Heavy Industries’ $1.52bn subcontract from Tecnimont Russia to provide construction and installation works for Gazprom’s Amur Gas Processing project with design capacity of 42 billion cubic meters per year in Russia; StroyTransNefteGaz’s $1.18bn contract from Gazprom for the construction of two sections (319km and 219km), as part of onshore section of the Nord Stream 2 twin 1,200km gas pipelines; Aibel’s $1.02bn EPC contract for the 23,000tons deck of the process platform (P2) associated with Johan Sverdrup Phase II development project in the Norwegian North Sea.
Operations and maintenance (O&M) represented 47% of the awarded contracts in Q2 2018, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 18%.
Saipem was the top contractor in the upstream sector, with $1.3bn in contracts during Q2 2018, while Equinor was the top issuer, with $7.84bn in awarded contracts. In midstream, Samkang S&C was the top contractor, with $1.9bn and Maire Tecnimont was the top issuer, with $1.52bn. The downstream sector has witnessed TechnipFMC as the top contractor, with $2.26bn, and Middle East Oil Refinery as the top issuer, with $1.7bn in awarded contracts.
Upstream contracts by scope and count, Q2 2018
Source: Equipment and Services Analytics © GlobalData
Within the largest sector by awarded contracts, the upstream sector, O&M accounted for around 62% of contracts. There were contracts for charter of Anchor Handling Tug Supply (AHTS) vessels, Platform Supply Vessels (PSV), Multi-Purpose Vessel (MPV), Construction Support Vessel (CSV), flexible lay and construction vessel; accommodation barge, semi-submersible drilling rig, workover rig, and jack-up rigs; provision of Floating Production, Storage, and Offloading (FPSO) vessel; provision for vertical and directional drilling and well completion services; inspection and mobilisation of casing and tubing for wells; provision of coatings for platforms; provision of maintenance and services for fire and safety equipment at field; provision of Oil Country Tubular Goods (OCTG) services; provision of subsea tie-in services for development wells; and provision of diving and Remotely Operated Underwater Vehicle (ROV) services.
Contracts with multiple scopes accounted for 16% of the contracts awarded in the upstream sector in Q2 2018. There were contracts for the provision to design and fabrication of extension spools for field development project; engineering, fabrication, installation, and pre-commissioning of subsea infield flowlines, production umbilicals, and related subsea equipment for field development project; EPC of the process platform, comprehensive offloading system, utility module; EPC of Wellhead Platform (WHP) and Brownfield Integrated Module (BIM); EPC of subsea equipment, including Enhanced Horizontal Christmas Trees (EHXT) as well as wellheads, subsea control systems, manifolds, tie-in systems and Intervention Work Over Control Systems (IWOCS); Engineering, Procurement, Construction, and Installation (EPCI) as well as loading, mooring, and transport of drilling platforms; Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC) of Subsea Umbilicals, Risers, and Flowlines (SURF) and Subsea Production Systems (SPS); procurement and construction of wellhead deck, piles and conductors for the field development project; provision for full technical services including subsurface, drilling and production engineering; provision of full-scale mooring and anchoring services; Engineering, Procurement, and Construction Management (EPCM) services including brownfield modifications, platform integrity and equipment upgrades, pre-decommissioning and decommissioning services; provision of project management, design, procurement, assembly, and testing of fire and safety equipment at field; provision of Perforate, Wash, and Cement (PWC) jetting system; transportation and installation of central processing platform jacket, topside float-over, wellhead platform, flexible pipelines, subsea power cables and auxiliary services; and supply, installation, integration with Distributed Control System (DCS).