Amid changing market dynamics, the oil and gas industry saw a significant decline of 16% quarter-on-quarter from 1,401 in Q3 2023 to 1,172 in Q4 2023. Data and analytics firm GlobalData revealed that despite the economic downturn, the slight rise in total contract value hinted at resilience in challenging times.
GlobalData's latest report, Q4 2023 Oil & Gas Contract Review by Industry, Region, Terrain, Planned and Awarded Contracts, and Top Contractors and Issuers, showed a slight increase in total contract value to $48 billion in Q4 2023 from $46 billion in Q3 2023.
Pritam Kad, Oil & Gas Analyst at GlobalData, commented, "The significant contract value during the quarter was primarily driven by major contracts between Tecnimont, Saipem and NPCC with ADNOC for the Hail and Ghasha development projects in Abu Dhabi, UAE, totalling US$8.7 billion and US$8.2 billion respectively. These contracts are critical to elevating the outlook for oil and gas contracts, potentially increasing the chances of further growth and cooperation in the region's food rations. ”
Oil and gas contracts. In the fourth quarter of 2023, operations and maintenance (O&M) accounted for 54% of total contracts, followed by procurement scope at 22%, and multiple scopes of construction, design and engineering, installation, operation and maintenance, and procurement at 13%.
ADNOC's contracts with Tecnimont, Saipem and NPCC involve significant liability. Tecnimont will oversee the construction of the onshore processing plant, including natural gas processing units, sulphur** sections, utilities, off-site and export pipelines. SAEPEM and NPCC will be responsible for engineering, procurement, and construction (EPC) of drilling centers, processing plants, and various offshore structures on artificial islands for the Haier and Gaza development projects.
"Despite the challenging market conditions, the oil and gas industry has shown resilience. This is evident in the slight increase in the total value of contracts, despite a significant decline in the volume of contracts disclosed. Going forward, the industry must prioritize strategic investments and partnerships to navigate uncertainty and promote sustainable growth. (Compiled by Xiao Chen).
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