Middle East Driving Global O&G Activity

34 Aramco Contracts Dominate E&P Sector

Project activity in the Middle East has been one of the driving factors for global oil and gas growth in the third quarter, according to the latest research from agency GlobalData.
The firm found that total oil and gas contracts awarded during the third quarter amounted to US$44.4 billion, of which more than 40 percent was attributed to just 34 contracts from Saudi Aramco.
“Saudi Aramco’s commitment towards enhancing local presence is demonstrated in-line with its In-Kingdom Total Value Add (IKTVA) initiative, which is designed to drive domestic value creation. The recent 34 EPC-related contracts, worth over US$18 billion, also support this initiative as most of the contract work will be undertaken by local companies/subsidiaries,” said Pritam Kad, analyst at GlobalData.

‘Significant’ In-country Value

The giant offshore Marjan and Berri field incremental development program was among the largest awards along with the US$3.6-billion contract awarded to oil firm ADNOC for the supply of one million tonnes of casing and tubing to support exploration and production activity in the UAE.
“ADNOC’s [supply contract], awarded during Q3, has the potential to achieve an in-country value of over 50 percent, which is significant,” Kad said.

Upstream O&M

In total, GlobalData identified 1,035 oil and gas contracts in Q3 2019 for the upstream sector with 255 in the midstream and 109 for the downstream/petrochemical sector. Findings are published in GlobalData’s Q3 2019 Global Oil & Gas Industry Contracts Review.
“Of the total contracts in Q3 2019, 61 percent were operation and maintenance related contracts, followed by multiple-scope contracts such as construction, design and engineering, installation, O&M, and procurement, which accounted for 12 percent,”  GlobalData states.

Founded in 1999, GlobalData is headquartered in London and provides data analytics and consulting services worldwide.