Oil and gas contracts have shown a continuous downtrend in the Q2 of 2020 compared to the previous quarter, according to Globaldata
A decrease in capital and the declining prices of crude oil, coupled with operational challenges, have led to the slowdown in the number of oil and gas contracts, stated GlobalData.
The oil and gas industry has recorded 907 contracts in the Q2, compared to 1,267 contracts in Q1.
According to GlobalData’s latest report, the upstream sector reported 658 contracts in the Q2 2020, followed by midstream and downstream/petrochemical sector with 171 and 114 contracts, respectively, during the quarter.
Some of the major contracts include:
Maire Tecnimont-led consortium and Sinopec Engineering’s US$1.31bn engineering, procurement and site services (EPSS) contract from Amur GCC for the implementation of several large-scale polyolefin units in Russia.
China Cosco Shipping has placed an order at CSSC-affiliated Hudong Zhonghua Shipbuilding for the construction of three 174,000 cu/m LNG carriers.
Pritam Kad, oil and gas analyst at GlobalData, said, “Europe recorded the majority of the contracts, with 412 contracts in Q2 2020, followed by North America, which has reported only 184 contracts during the quarter. Operation and Maintenance (O&M) represented 52% of the total contracts in Q2 2020, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 15% of the contracts.”
