Oil and gas industry shows resilience amidst shifting market dynamics
GlobalData, a leading data and analytics company, reports a 16% quarter-on-quarter decline in disclosed contract volume in the oil and gas industry from 1,401 contracts in Q3 2023 to 1,172 contracts in Q4 2023.
However, amidst this downturn, there was a marginal uptick in overall contract value, increasing from $46 billion to $48 billion.
According to Pritam Kad, Oil and Gas Analyst at GlobalData, this increase in contract value can be attributed to significant contracts awarded by ADNOC to Tecnimont, Saipem, and NPCC for the Hail and Ghasha Development Project in Abu Dhabi, UAE.
These contracts, totaling $8.7 billion and $8.2 billion respectively, played a pivotal role in elevating the oil and gas contracts landscape, potentially paving the way for further growth and collaboration in the region.
Operation and Maintenance (O&M) contracts dominated the sector, representing 54% of total contracts in Q4 2023, followed by procurement contracts at 22%. Contracts with multiple scopes, including construction, design and engineering, installation, O&M, and procurement, accounted for 13% of the total contracts.
The contracts with Tecnimont, Saipem, and NPCC involve significant responsibilities, with Tecnimont overseeing the construction of an onshore processing plant and Saipem and NPCC handling the Engineering, Procurement, and Construction (EPC) of drilling centers, processing plants, and offshore structures for the Hail and Ghasha Development Project.
