twitter linkedinfacebookacp contact us

Global oil & gas contracts stifled in Q1 2022 - GlobalData

Industry

Global oil and gas contracts saw a drop in value in Q1 of 2022 compared with Q4 of 2021 – although Saudi Aramco bucked the trend, according to new research from GlobalData

At the start of Q1 2022, global oil and gas industry contract activity was stifled due to the Russia-Ukraine conflict. However, in the second half of the quarter a minor increase in the number of contracts was reported. Unfortunately, the industry was unable to maintain its position in terms of contract value compared to the previous quarter, according to GlobalData, a leading data and analytics company.

Pritam Kad, Oil & Gas analyst at GlobalData, commented, “Contracts in the oil and gas industry could only float due to the sheer uncertainties surrounding it, including the ongoing Russia-Ukraine crisis, rising prices, and project cost escalation. However, Saudi Aramco was able to keep the momentum going with Zuluf oilfield expansion contracts during the quarter.”

GlobalData’s latest report, ‘Q1 2022 Global Oil & Gas Industry Contracts Review’, reveals that the number of contracts saw a minor increase from 1,452 in Q4 2021 to 1,546 in Q1 2022. However, overall contract value decreased significantly from US$61.16bn in Q4 2021 to US$36.93 billion in Q1 2022.

Notable during Q1 2022 was Saudi Aramco’s award of multiple contracts for the expansion of the Zuluf oil field in Saudi Arabia, including EPC work to JGC Holdings ranging between US$2 -2.5bn for two sets of oil and gas separation units, gas compression units, and onshore processing facilities such as crude oil processing units, as well as EPC for injection water pumps, water-oil separation units, thermal oil systems, electrical and non-electrical facilities;

Other notable contracts were those awarded to the National Petroleum Construction Company (NPCC) for construction work associated with the fourth and fifth Zuluf packages, where the fourth package CRPO 82 includes at least 12 oil-handling wellhead topsides, two oil tie-in platforms, and one electrical distribution platform, and the fifth package CRPO 83 includes up to 12 additional oil-handling wellhead topsides, two oil tie-in platforms, as well as infield pipelines and cables.

In terms of single scopes, operation and maintenance (O&M) represented 56% of the total contracts, followed by procurement with 16%, and contracts with multiple scopes, such as construction, design and engineering, installation, procurement, and O&M accounted for 14%.

 

The oil and gas industry has been increasingly adopting AI technology in recent years, and this trend is expected to continue in the coming years. (Image source: Adobe Stock)

SmartMaster can be used with a range of ABB and third-party instruments. (Image source: ABB)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

Oman LNG signed various agreements with Shell Gas to secure its gas supply until 2034. (Image source: Adobe Stock)

ARO Drilling and IMI announce first Kingdom jack up rig (Image source: ARO)

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

Michael Monica, director sales, marketing and customer care at GPT Industries signs the agreement with Mohamed Altaf, sale manager, Abdulla Fouad Energy Services. (Image source: Alain Charles Publishing)

Amin H. Nasser, CEO of Aramco. (Image source: Aramco)

The system can activate notification and hazard mitigation equipment to notify workers and safeguard facilities. (Image source: MSA Safety)

The new discoveries will bolster Aramco’s strategy to increase gas production by more than half over 2021 levels, through 2030. (Image source: Adobe Stock)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

The new technology is designed to address the challenging conditions in unconventional wells. (Image source: Adobe Stock)

Source: SafeStart

The Ampelmann A-type enabling safe offshore access in the Middle East. (Image source: Ampelmann)

Aramco has produced the first unconventional tight gas from its South Ghawar operational area ahead of schedule. (Image source: Adobe Stock)

Gaurav Khupsare, Director, MACS-G Solutions. (Image source: Alain Charles Publishing)

Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.

TotalEnergies and SONATRACH will develop gas resources in Algeria's north-east Timimoun region, (Image source: Adobe Stock).

By using analytics to augment and empower the workforce, pipeline operators can optimise operations and improve asset availability. (Image source: Adobe Stock)

The oil price is hovering around the US$90/bbl mark. (Image source: Adobe Stock)

The Craig International Qatar team. (Image source: Craig International)

The SuperFill II diverter reduces induced surge pressure. (Image source: Halliburton)

Among other services, KBR will offer proprietary equipment for NCIC's 1,200 metric tonnes per day ammonia plant. (Image source: Adobe Stock)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

ADNOC Gas recorded robust financial and operational results in 2023. (Image source: Adobe Stock)

Over 4,000 km of SoluForce pipe has been installed around the world. (Image source: SoluForce)

Block 56 is targeted for commercialisation in 2024. (Image source: Canva)

The programme will optimise asset lifecycle, enhance machinery performance and improve overall reliability. (Image source: Adobe Stock)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

Source: SafeStart

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

The company is well positioned in 2024, with a reshaped and resilient business and a strong balance sheet. (Image source: Adobe Stock)

The vessel addresses the growing demand for accurate hydrographic data. (Image source: Fugro)

The virtual inhouse seismic processing centre will allow each of the decentralised business units of Wintershall Dea globally to collaborate efficiently and directly with DUG. (Image source: Adobe Stock)