Global oil and gas contracts activity witnessed a decline of 11% in the number of contracts, from 1,623 in Q4 2022 to 1,440 in Q1 2023. The contract value reported a decrease of 48% with $34.03bn in Q1 2023, as compared to $64.9bn in Q4 2022.
Notable contracts during the quarter include Yinson Holdings subsidiaries’ 15-year contract extension worth approximately $5.3bn for the charter and operation and maintenance (O&M) services of the Agogo floating, production, storage, and offloading (FPSO) vessel in Angola; ADNOC Logistics & Services’ AED9.5bn ($2.6bn) contract for integrated logistics services in support of offshore oil and gas logistics operation in Abu Dhabi, UAE; and DL E&C’s KRW1.4tn ($1,058.78m) contract with a Hyundai Engineering & Construction-led consortium comprising Hyundai Engineering and Lotte Engineering & Construction for the construction of thermal crude to chemicals (TC2C) facilities and an interconnection package, as part of package one of S-Oil’s Shaheen project in Ulsan, South Korea.
As per the graph above, the upstream sector reported 1,132 contracts during Q1 2023, followed by midstream and downstream/petrochemical sectors with 215 and 123 contracts, respectively during the quarter.
Europe recorded the majority of the contracts, with 564 contracts in Q1 2023, followed by North America and Asia with 379 and 216 contracts, respectively during the quarter.
O&M represented 57% of the total contracts in Q1 2023, followed by procurement scope with 17%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 14%.