Amidst shifting market dynamics, the oil and fuel business confronted a big quarter on quarter decline of 16 % in disclosed contract quantity from 1,401 within the third quarter of 2023 to 1,172 within the fourth quarter of 2023, GlobalData acknowledged in a launch despatched to Rigzone not too long ago.
The corporate famous within the launch, nevertheless, that “regardless of this downturn, a marginal uptick in total contract worth hints at resilience through the difficult occasions”. GlobalData highlighted within the launch that its newest report on oil and fuel business contracts revealed that total contract worth rose from $46 billion within the third quarter of final 12 months to $48 billion within the fourth quarter of 2023.
In accordance with a chart included within the launch displaying oil and fuel business contracts by scope within the fourth quarter of final 12 months, operations and upkeep offers took the most important chunk, with 636 contracts, adopted by procurement offers, with 253 contracts, offers with a a number of scope, which totaled 157 contracts, design and engineering offers, with 78 contracts, building and set up offers, with 44 contracts, and asset retirement offers, with 4 contracts.
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“The numerous contract worth within the quarter was largely pushed by Tecnimont, Saipem, and NPCC’s important contracts with ADNOC totaling $8.7 billion and $8.2 billion, respectively, for the Hail and Ghasha Growth Undertaking in Abu Dhabi, the UAE,” Pritam Kad, an oil and fuel analyst at GlobalData, stated within the launch.
“These contracts had been pivotal in elevating the oil and fuel contracts panorama, probably boosting alternatives for additional development and collaboration within the area,” Kad added.
“Regardless of dealing with challenges out there surroundings, the oil and fuel business has demonstrated resilience. That is evident from the slight enhance in whole contract worth, regardless of a big drop in disclosed contract quantity,” Kad continued.
“Wanting forward, it’s crucial for the business to prioritize strategic investments and forge partnerships to navigate uncertainties and foster sustainable development,” the GlobalData analyst went on to state.
Within the launch, GlobalData famous that ADNOC’s contracts with Tecnimont, Saipem, and NPCC contain important duties.
“Tecnimont will oversee the development of an onshore processing plant, together with fuel processing items, sulphur restoration sections, utilities, offsites, and export pipelines,” the corporate added.
“Saipem and NPCC, alternatively, will deal with the Engineering, Procurement, and Development (EPC) of drilling facilities, processing vegetation, and varied offshore buildings on synthetic islands for the Hail and Ghasha Growth Undertaking,” it continued.
In a separate launch despatched to Rigzone in November final 12 months, GlobalData stated the oil and fuel business’s total disclosed contract worth witnessed 1 / 4 on quarter lower of 26 % within the third quarter of 2023.
That launch highlighted that the information and analytics firm’s newest report on the time confirmed that total contract worth decreased from $57.4 billion within the second quarter of 2023 to $42.6 billion within the third quarter of 2023.
On the identical time, the contract quantity additionally noticed a drop from 1,425 within the second quarter of 2023 to 1,128 within the third quarter of 2023, GlobalData acknowledged in that launch.
“The continued geopolitical tensions and the unpredictable fluctuations in crude oil costs are considerably dampening the general sentiment throughout the oil and fuel sector,” Kad stated in that launch.
