Surge in Middle East Activity Drives Oil and Gas Contracts to $57 Billion

Surge in Middle East Activity Drives Oil and Gas Contracts to $57 Billion

The global oil and gas sector witnessed a substantial rise in contract value, soaring from $35.4 billion in Q1 2023 to $56.7 billion in Q2 2023, predominantly propelled by significant contracts in the Middle East, as outlined in a recent report by GlobalData.

A remarkable 60% surge in quarterly contract activity finds its catalyst in a monumental agreement tied to Qatar's North Field South (NFS) LNG project, a standout finding highlighted by GlobalData's analysis.

Pritam Kad, Oil and Gas Analyst at GlobalData, elucidates, "The pronounced escalation in contract value can be directly attributed to the groundbreaking $10 billion engineering, procurement, construction, and commissioning (EPCC) contract by the joint venture of Technip Energies and Consolidated Contractors Company (CCC), entrusted with the task of constructing the 16 million tonnes per year North Field South (NFS) LNG project in Qatar."

The distribution of contracts in Q2 2023 reflects Operation and Maintenance (O&M) taking the lead at 54%, followed by procurement scope at 18%. Contracts encompassing multiple scopes—ranging from construction, design, and engineering to installation, O&M, and procurement—comprise 11% of the total contracts.

Highlighting Noteworthy Contracts in the Oil and Gas Landscape

Beyond QatarEnergy's monumental contract for the establishment of two mega LNG trains and associated facilities in Qatar's North Field South (NFS) initiative, other prominent agreements include Hyundai Engineering & Construction's acquisition of two lump-sum turn-key contracts from Saudi Aramco and TotalEnergies. These encompass comprehensive design, Engineering, Procurement, and Construction (EPC) responsibilities for the expansion of the Amiral petrochemicals facility in Jubail Industrial City, Saudi Arabia.

Notably, Maire Tecnimont subsidiaries also secured two lump-sum turn-key contracts from Saudi Aramco and TotalEnergies for the Engineering, Procurement, and Construction (EPC) of Derivatives units and High-Density Polyethylene (HDPE) units, integral components of the Amiral petrochemicals facility expansion.