Aramco was the top issuer of oil and gas contracts worldwide in Q1 2024, according to GlobalData’s latest Oil and Gas Industry Contracts Review
The leading data and analytics company highlights the award of Tecnicas Reunidas and Sinopec Engineering Group’s two lumpsum contracts combined worth approximately US$3.3bn from Saudi Aramco for the EPC of the Riyas Natural Gas Liquids (NGL) fractionation facility in Saudi Arabia
However, the GlobalData report reveals that the value of oil and gas contracts globally declined in value by 37% quarter-on-quarter in Q1 2024, from US$50.2bn in Q4 2023 to US$31.4bn in Q1 2024, with overall contract volume decreasing from 1,346 in Q4 2023 to 1,142 in Q1 2024.
Contract scopes
Operation and Maintenance (O&M) represented 59% of the total contracts in Q1 2024, followed by procurement with 16%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement accounted for 13%. The O&M scope is primarily dominated by upstream sector contracts, with a significant focus on chartering jack-up rigs, onshore rigs, drillships, and support vessels. In Q1 2024, offshore terrains accounted for the market’s highest share in the oil and gas industry contracts landscape.
Other notable contracts highlighted during the quarter include Samsung Heavy Industries’ US$3.44bn construction contract for 15 LNG carriers, each of 174,000 m3 capacity, and Tecnimont’s approximately US$1.1bn contract from Sonatrach for the Engineering, Procurement, Construction, and Commissioning (EPCC) of a new Linear Alkyl Benzene (LAB) plant with a capacity of 100,000 tons per annum (tpa) and utilities infrastructure in east Algeria. HD Hyundai accounted for the highest share of the oil and gas industry contracts landscape in terms of value during the quarter.
Pritam Kad, Oil and Gas analyst at GlobalData, commented, “Many traditional oil and gas industry projects are getting delayed or postponed due to concerns over demand outlook in oil and gas consuming countries amid the looming recession and high inflation, which is clearly evidenced by the decrease in both contract value and volume.”
"Contrarily, oil prices are anticipated to be favourable for producers due to potential supply disruptions arising from geopolitical risks. GlobalData expects that delayed or near completion projects are likely to be pushed forward in the mid-term."
Aramco top issuer of Q1 o&g contracts
