Oil and gas contract activity remained relatively stable in Q1 2021, with the industry recording a marginal decrease in the number of contracts and an increase in disclosed contract value at the same time.
A new report by GlobalData, “Q1 2021 Global Oil & Gas Industry Contracts Review,” notes that the number of oil and gas contracts declined while value increased over the past quarter. In Q1 2021, the industry saw 1,282 contracts awarded with a total value of $29.3 billion. Comparatively, in Q4 2020 those numbers were slightly higher, with 1,330 contracts awarded totaling $25.5 billion.
“Contract activity is now relatively stable with marginal improvement in crude oil price and the COVID-19 pandemic, the industry foresees a relatively stable outlook and CAPEX improvement,” said Pritam Kad, Oil and Gas Analyst at GlobalData.
In Q1 2021, 52% of the contracts recorded were for operation and maintenance (O&M) scope, followed by procurement scope with 18%.
The notable contracts include BW Offshore’s $4.6 billion contract for engineering, procurement, construction, installation (EPCI), lease and operation of the Barossa FPSO offshore Darwin in Australia, and Arabian Industries and Special Technical Services’ $4 billion contract from Petroleum Development Oman (PDO), spanning the execution of maintenance, integrity, field improvement proposals, turnaround activities, and the delivery of brownfield projects in the North and South of its concession area in Oman.