The upstream sector recorded 188 awarded contracts in May 2017. Among the notable contracts in the upstream sector were Petroleum Development Oman’s two four-year contracts with a combined value of OMR300m ($776.6m) to Galfar Engineering & Contracting and Seeh Al Sarya Engineering for the off-plot mechanical works at oil fields in Qarn Alam, Fahud, Lekhwair, and Yibal area, and Vallianz Holdings’ three-year $115m contract for the charter of Offshore Support Vessels (OSVs) to support oil and gas operations in the Caspian Sea, offshore Turkmenistan.
Operations and maintenance (O&M) accounted for 60% of the awarded upstream contracts. There were contracts for the charter of OSVs; Anchor Handling Tug Supply (AHTS) vessels; Platform Supply Vessels (PSVs); Multi Purpose Supply Vessels (MPSVs); drilling rigs; and Remotely Operated Vehicle (ROV) to support offshore oil and gas operations; provision of field management; well stimulation and completion services; and drilling and well technology services.
Design and engineering accounted for 14% of the awarded upstream contracts, with activities focused on engineering services including of conceptual studies and pre-Front End Engineering and Design (pre-FEED)/FEED for oil field development projects; semi-submersible platform and wellhead platforms; provision of seismic survey acquisition; subsurface imaging technology and studies related to drilling activities.
Upstream contracts by scope and count, May 2017
Source: Equipment and Services Analytics, GlobalData
Contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, accounted for 16% of the contracts awarded in the upstream sector in May 2017. There were contracts for the provision of engineering, procurement, fabrication and installation of wear protection on risers; Engineering, Procurement, Construction, and Installation (EPCI) of Subsea, Umbilicals, Risers, and Flowlines (SURF) package including risers, flowlines, and associated structures and jumpers; provision of towing, mooring installation, and hook-up services; engineering, procurement, fabrication, load-out, transportation, installation, hook-up, and pre-commissioning work of offshore platform; and provide services and products to support the design, fabrication, and installation of ancillary flowline hardware for field development projects.
Procurement accounted for a mere 5% of the awarded upstream contracts, which included the supply of differential pressure, electromagnetic, ultrasonic, and mass type flow meters; surface exploration wellhead equipment and steel structures for subsea facilities.
Monthly Oil & Gas Industry Contracts Review – CNPC’s Pipeline Contract Leads Contracts Activity in the Midstream Sector