Global oil and gas contract activity received a boost from Petrobras' key upstream contracts in the second quarter of 2024. The industry witnessed a notable 47% quarter-on-quarter increase in total disclosed value to reach $54.91 billion in Q2 2024 from $37.3 billion in Q1, reveals GlobalData, a leading data and analytics company.
GlobalData’s latest report, "Oil and Gas Industry Contracts Review by Sector, Region, Terrain and Top Contractors and Issuers, Q2 2024", reveals that the overall oil and gas contracts volume decreased marginally from 1,473 in Q1 2024 to 1,377 in Q2 2024.
Pritam Kad, Oil and Gas Analyst at GlobalData, comments: “Petrobras' monumental awards, including the $8.15 billion P-84 and P-85 FPSO construction contract to Seatrium, the $1.8 billion contract for subsea engineering to the Sapura consortium, and an additional $2.5 billion for pipelay vessels, rigid risers, and flowlines contracts to Subsea 7, were the driving forces behind the surge in the overall oil and gas contracts value.”
Operation and Maintenance (O&M) scope reported 681 contracts, accounting for 49% of the total contracts in Q2 2024, followed by procurement with 400 contracts representing a 29% share. Contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, accounted for 9% of the contracts.
The $8.15 billion P-84 and P-85 FPSO construction contract awarded by Petrobras to Seatrium are for the Atapu and Sepia fields, offshore Brazil, while the scope of work for the Seagems and Sapura consortium consists of subsea engineering, installation, and other services utilizing six multi-purpose pipe-laying support vessels (PLSV).
Subsea 7’s five contracts from Petrobras include $1.25 billion four pipelay support vessels contracts and another $1.25 billion engineering, procurement, fabrication, installation, and pre-commissioning contract for 102 km of rigid risers and flowlines for the steel lazy wave production system for Petrobras’ Buzios 9 field development, offshore Brazil.
The other notable contracts include Samsung Engineering, GS Engineering & Construction, and Nesma & Partners’ $7.7 billion EPC contract from Saudi Aramco for Fadhili Gas plant expansion from 2.5 to up to 4 billion standard cubic feet per day (bscfd) in Saudi Arabia; Tecnimont-led consortium’s $2.3 billion EPC contract from Sonatrach for three gas boosting stations with 20 turbo-compressor trains in Algeria; and Saipem’s $850 million rigid pipelines, flexible flowlines, jumpers, and umbilicals work for Azule Energy’s Ndungu field development in Angola.
