GlobalData reports a significant rise in contract value to $54.91 billion, driven by major awards to Petrobras and Saudi Aramco.
The value of worldwide oil and gas contracts increased by a startling 47% on a quarter-over-quarter basis in the second quarter (Q2) of 2024, according to GlobalData, to $54.91 billion. With respect to the $37.3 billion reported in Q1 2024, this is a notable increase. The total value increased despite a minor decline in the number of contracts—from 1,473 in Q1 to 1,377 in Q2—because of a number of well-known contract awards.
The substantial rise is attributed to key contracts awarded in the industry, including Petrobras’ notable $8.15 billion FPSO construction contract for the Atapu and Sepia fields in Brazil. Other significant contracts include Samsung Engineering’s $7.7 billion EPC contract for the Fadhili Gas plant expansion with Saudi Aramco, and a $2.3 billion EPC contract for Sonatrach awarded to a Tecnimont-led consortium.
GlobalData highlighted that the rise in contract value was mostly driven by these significant awards, especially those involving Petrobras and Saudi Aramco. The contract value had already decreased, falling by 37% from $50.2 billion in Q4 2023 to $31.4 billion in Q1 2024, according to the study. In contrast to previous volatility, the contract value has recently increased, indicating a rebound in project activity and market confidence.
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