Global oil and gas contract activity saw a 35% quarter-on-quarter decrease in total disclosed value from $55.3 bill in second quarter of this year to $35.7 bill in 3Q24.
Despite this, steady contract volumes, particularly in the Middle East, were driven by substantial projects, such as Saipem’s $4 bill contract with QatarEnergy and multi-billion-dollar agreements from Aramco, providing some stability, according to a GlobalData report.
GlobalData’s latest report, ‘Oil and Gas Industry Contracts Review by Sector, Region, Terrain and Top Contractors and Issuers, Q3 2024,’ revealed that the overall contract volume remained relatively stable, with 1,519 contracts in 3Q24, compared to 1,546 in the previous quarter.
Pritam Kad, GlobalData’s Oil and Gas Analyst, commented: “Contract activity in the Middle East has provided little stability, helping to offset the overall value decline.
“This is driven by Saipem’s $4 bill contract from QatarEnergy LNG for the North Field offshore compression programme in Qatar and significant contracts worth over $3 bill from Aramco for engineering, procurement, construction, and installation (EPCI) work on the Zuluf, Safaniyah, and Marjan field development projects in Saudi Arabia,” he said.
Operation and maintenance (O&M) represented 45% of the total contracts in 3Q24, followed by procurement scope with 33%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 10%.
Kad concluded: “The surge in large-scale offshore and subsea projects, particularly in the Middle East, underscores the continued emphasis on expanding energy infrastructure to meet rising demand.
“As companies secure high-value contracts across key oilfields, the sector is not only reinforcing its strategic partnerships but also positioning itself to support long-term growth in energy production, with an increasing focus on sustainability and technological innovation in project execution,” he said.
