While the global oil and gas industry witnessed a marginal decrease in the number of contracts, from 1,283 in Q3 2020 to 1,145 in Q4, there was an almost 28% increase in terms of value from $17.58 billion to $22.55 billion.
GlobalData’s latest report, “Q4 2020 Global Oil & Gas Industry Contracts Review,” states that the upstream sector reported a total of 815 contracts in Q4 2020, followed by the midstream sector with 189 contracts during the quarter. Europe recorded majority of the contracts, with 506 contracts in Q4 2020, followed by Asia and North America with 233 and 198 contracts, respectively.
“Amid easing concern over crude oil prices and the effects of COVID 19, contract activity is now looking relatively stable,” said Pritam Kad, oil and gas analyst at GlobalData. “This indicates the industry is trying to cope with recent upheaval in commodity markets and is making adjustment for long-term sustainability.”
Significant contracts in Q4 2020 included Samsung Ingenieria Manzanillo and Asociados Constructores’ $3.6 billion EPC contract for various units of Dos Bocas refinery project in Mexico, and Samsung Engineering’s $1.07 billion contract for the provision of licensor, engineering, procurement, construction and commissioning services for a methanol production facility in Bintulu, Sarawak, Malaysia.
“These significant contracts will allow Samsung to reinforce its position with engineering capabilities and thus become better placed to garner future EPC projects in the refining and petrochemical market,” Kad reported.
Operation and maintenance (O&M) represented 53% of the total contracts in Q4 2020, followed by contracts with multiple scopes ranging from construction, design and engineering to installation, O&M and procurement–all of which accounted for 14%.