Global Oil and Gas Contract Value Remains Stable Despite Volume Decline in Q4 2024

The global oil and gas industry experienced a 15% quarter-on-quarter decrease in the total number of contracts, from 1,596 in Q3 2024 to 1,353 in Q4 2024. Despite the dip in volume, the overall contract value remained stable, driven by the announcement of some major contracts in Africa, 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, Q4 2024,” reveals that the overall contract value remained relatively stable at $39.2 billion in Q4 2024 compared to $38.8 billion in Q3 2024. The major contracts announced in the African region include Tecnicas Reunidas and Sinopec Engineering’s $4 billion new deep conversion oil refinery project in Algeria’s Hassi Messaoud region, and $1.4 billion Wuhuan Engineering and WeDo’s ammonia and urea plant project in Angola.

Pritam Kad, Oil and Gas Analyst at GlobalData, comments: “Sinopec Engineering replacing Samsung Engineering to partner with Tecnicas Reunidas for the 5 mmtpa deep conversion refinery project in the Hassi Messaoud region of Algeria was a significant value booster, along with the support from JGC Indonesia $2.4 billion compression contract for the Tangguh LNG contract, Saipem’s $1.9 billion GranMorgu subsea development contract in Suriname, and Wuhuan Engineering and WeDo’s contract for an ammonia and urea plant in Angola. These contracts were crucial in keeping the contract value stable despite the decline in volume.”

Operation and Maintenance (O&M) represented 50% of the total contracts in Q4 2024, followed by procurement scope with 30%, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 10%.

Some other notable contracts during the quarter were Bram Offshore and Starnav Servicos Maritimos’ $2.74 billion construction and charter contract from Petrobras for 12 Platform Supply Vessels (PSVs) and Saipem’s $1.9 billion contract from TotalEnergies EP Suriname for the EPC, supply, pre-commissioning, and commissioning assistance for the Subsea Umbilicals, Risers, and Flowlines (SURF) package for the GranMorgu project in Suriname. These contracts demonstrate continued investment and expansion in key global oil and gas projects.