The global oil and gas industry’s total contract value reached USD42bn in Q2 2019, a massive 79% increase on Q1’s value of USD23.4bn according to GlobalData.
This rise occurred despite there being a slight decline in the number of contracts from 1,453 in Q1 to 1,283 in Q2, 2019.
GlobalData’s latest report ‘Q2 2019 Global Oil & Gas Industry Contracts Review’, reveals that the upstream sector constituted 71% of the total contracts awarded, with 858 contracts. The midstream and downstream/petrochemical sector recorded 245 and 100 contracts, respectively. The increase in contract value was largely driven by engineering, procurement and construction (EPC) contracts in the midstream sector such as Bechtel’s USD9.57bn agreement with NextDecade for the Rio Grande liquefied natural gas (LNG) project in Texas and Saipem, McDermott International and Chiyoda – CCS JV’s USD8bn contract with Anadarko Petroleum for the development of an onshore LNG park in Mozambique.