Contract awards set to rise following crude price gains

There was a 7% drop in oil and gas contract activity worldwide during 2Q 2021, according to GlobalData.

There was a 7% drop in oil and gas contract activity worldwide during 2Q 2021, and a significant decrease in disclosed contract value, according to GlobalData’s latest review.

However, oil & gas analyst Pritam Kad said the decline looks to be temporary “as the industry foresees an improvement in contracts activity with business outlook, crude oil prices and COVID-19 restrictions now easing.”

Operation and maintenance (O&M) represented 47% of the total contracts awarded in 2Q, followed by procurement scope with 18%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 16%.

Notable awards went to the Saipem and DSME joint venture, along with Keppel Shipyard’s contracts from Petrobras for the construction of the Búzios VIII (P-79) and Búzios VII (P-78) FPSOs.

Credit to www.offshore-mag.com