Offshore Technology

Daily Newsletter

08 November 2023

Daily Newsletter

Oil and gas contract volume and value fall in Q3 2023

Global oil and gas contracts activity witnessed a decline of 21% in the number of contracts, from 1,425 in Q2…

Global oil and gas contracts activity witnessed a decline of 21% in the number of contracts, from 1,425 in Q2 2023 to 1,128 in Q3 2023. Also at the same time, the quarter witnessed a decrease of 26% in combined disclosed value from $57.4bn in Q2 2023 to $42.6bn in Q3 2023.

Some of the notable contracts during the quarter include HD Hyundai Heavy Industries’ agreement worth QR14.2bn ($3.9bn) with QatarEnergy for the construction of 17 ultra-modern liquefied natural gas (LNG) carriers, as part of the North Field LNG expansion and Golden Pass LNG export projects, as well as long-term fleet replacement requirements in Qatar.

National Petroleum Construction Co (NPCC) and Tecnicas Reunidas consortiums’ Dh13.1bn ($3.6bn) contract from ADNOC Gas for the expansion of gas processing infrastructure to increase ethane extraction by 35%-40%, from existing onshore facilities, through the construction of new gas processing facilities at the Habshan complex in Abu Dhabi, UAE, and McDermott International’s major contract ranging between $750m and $1.5bn from Qatargas Operating Company (Qatargas) for the Engineering, Procurement, Construction, and Installation (EPCI) services for the North Field Production Sustainability (NFPS) COMP1 - offshore fuel gas pipeline and subsea cables project in Qatar.

Oil and gas industry contracts by scope, Q3 2023

Source: GlobalData Oil & Gas Intelligence Center.

The upstream sector reported 858 contracts during Q3 2023, followed by midstream and downstream/petrochemical sectors with 189 and 100 contracts, respectively during the quarter.

Europe recorded most of the contracts, with 370 contracts in Q3 2023, followed by North America and Asia with 296 and 217 contracts, respectively during the quarter.

Operation and maintenance (O&M) represented 59% of the total contracts in Q3 2023, followed by procurement scope with 15%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 13%. Further details can be found in GlobalData’s new report, Oil and Gas Industry Contracts Analytics by Sector, Region, Planned and Awarded Contracts and Top Contractors, Q3 2023.

Could Machine learning (ML) adoption be a key growth catalyst in the O&G market?

ML can be used to analyze seismic data, well logs, and other geologic data to identify potential reservoirs. ML algorithms are also capable of analyzing production data and identifying patterns that can be used to improve well performance. This can lead to increased production rates and reduced downtime. Besides, this analysis can also be used to identify potential hazards, thereby preventing any untoward incidents and boosting operational safety.