Global oil and gas contract activity received a significant boost in the second quarter of 2024, with Petrobras playing a key role in driving this momentum. According to a report by GlobalData, the total disclosed value of contracts in the industry surged by 47%, reaching US$54.91 billion in 2Q24 from US$37.3 billion in the previous quarter. Despite this impressive increase in value, the number of contracts awarded actually saw a slight decline of 7%, dropping from 1473 in 1Q24 to 1377 in 2Q24.
One of the major contributors to this surge in contract value was Petrobras, the Brazilian state-controlled oil company. Petrobras awarded several notable contracts during the second quarter of 2024, including a US$8.15 billion contract to Seatri-um for the construction of FPSOs (Floating Production Storage and Offloading vessels) for the Atapu and Sepia fields offshore Brazil. Additionally, Seagem, Sapura subsidiaries, and Seabras Sapura Participacoes secured a US$1.8 billion contract for subsea engineering, installation, and other services utilizing six multi-purpose pipe-laying support vessels. Subsea 7 also clinched five contracts, including a US$1.25 billion contract for the engineering, procurement, fabrication, installation, and pre-commissioning of rigid risers and flowlines for Petrobras‘ Buzios 9 field development.
In terms of contract distribution by scope, the upstream sector dominated with 901 contracts awarded in 2Q24, followed by the downstream/petrochemical sector with 306 contracts and the midstream sector with 191 contracts. Geographically, Asia led the way with 464 contracts, followed by Europe with 368 contracts and North America with 343 contracts during the same period.
Operation and maintenance (O&M) activities accounted for 49% of the total contracts awarded in 2Q24, followed by procurement scope with 29%. Contracts with multiple scopes, encompassing construction, design and engineering, installation, O&M, and procurement, represented 9% of the total contracts.
For more in-depth analysis and insights into the oil and gas industry contract landscape in the second quarter of 2024, GlobalData has released a new report titled ‚Oil and Gas Industry Contracts Review by Sector, Region, Terrain and Top Contractors and Issuers, Q2 2024′.
In addition to the contract activity, the latest issue of World Pipelines magazine covers a range of topics including pipeline project management, inspection, condition assessment, servicing, surface preparation, OT software, CO2 and hydrogen pipelines, and pipeline construction.
Overall, the increase in contract value and Petrobras‘ key role in driving upstream contracts highlight the continued momentum in the global oil and gas industry. With ongoing developments and projects in various regions, the industry is poised for further growth and innovation in the coming quarters.