Oil and gas contract volume and value fall in 3Q23

At the same time, the quarter witnessed a decrease of 26% in combined disclosed value from US$57.4 billion in 2Q23 to US$42.6 billion in 3Q23.

Some of the notable contracts during the quarter include HD Hyundai Heavy Industries’ agreement worth QR14.2 billion (US$3.9 billion) with QatarEnergy for the construction of 17 ultra-modern 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’ Dh13.1 billion (US$3.6 billion) 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 US$750 million and US$1.5 billion 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.

The upstream sector reported 858 contracts during 3Q23, 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 3Q23, 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 3Q23, 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%.