Recent data reveals a notable increase in contract values within the oil and gas industry during Q2 2023, primarily attributed to advancements in Qatar’s North Field South (NFS) project. According to figures provided by GlobalData, a data and analytics group, there was a significant quarter-on-quarter surge of 60% in disclosed contract values, amounting to nearly £41 billion, up from £25.5 billion in the previous quarter.

GlobalData's latest report, which encompasses the upstream, midstream, and downstream sectors, illustrates a growth trend from Q1's £21.3 billion. Despite this, the overall contract volume dipped from 1,625 contracts in Q1 to 1,256 during the last three months, largely due to the substantial Middle East project award.

Pritam Kad, an oil and gas analyst, emphasized the major contributing factor to this increase: “The substantial rise in value can be attributed to the Technip Energies and Consolidated Contractors Company (CCC) joint venture’s groundbreaking £7.2 billion engineering, procurement, construction, and commissioning (EPCC) contract for the 16 million tonnes per year North Field South (NFS) LNG project in Qatar."

The NFS project encompasses the construction of two trains, each with a 16 million tonnes per year capacity, along with gas treatment facilities, NGL recovery, helium extraction, and refining at Ras Laffan.

According to GlobalData, 54% of the contract value originated from operations and maintenance (O&M), followed by procurement scopes at 18%. Contracts involving multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, collectively accounted for 11% of the contract value.

Additional significant awards during the quarter include Hyundai E&C’s two combined lump-sum turn-key contracts valued at approximately £3.6 billion from Saudi Aramco and TotalEnergies. These contracts encompass detailed design EPC for a mixed feed cracker (MFC) and utilities, flares, and interconnecting facilities as part of the Amiral petrochemicals facility expansion in Jubail Industrial City, Saudi Arabia.

Collectively, Saudi Aramco and TotalEnergies allocated £7.7 billion worth of work at the site, confirmed during a signing ceremony in Dhahran on June 24. At the time of the final investment decision (FID), TotalEnergies stated its objective to commence commercial operations by 2027.

Maire Tecnimont also secured an award worth £1.4 billion for two polyethylene units employing “advanced dual-loop technology” with a 500 kta capacity each, along with derivative units. Italy's Maire Tecnimont secured two lump-sum EPC contracts for this project.