The oil and gasoline contracts market noticed a 37 % decline in worth in the course of the first quarter of this 12 months, based on a GlobalData launch despatched to Rigzone not too long ago.
“The oil and gasoline contracts market confronted turbulence, with a notable quarter on quarter decline of 37 % in disclosed contract worth, dropping from $50.2 billion in This autumn [fourth quarter] 2023 to $31.4 billion in Q1 [first quarter] 2024,” the discharge famous.
“This decline was accompanied by a lower in total contract quantity,” it added.
GlobalData highlighted within the launch that its newest report on oil and gasoline business contracts revealed that the general contract quantity declined from 1,346 in This autumn 2023 to 1,142 in Q1 2024.
In response to a chart included within the launch, operations and upkeep contracts took up the majority of offers in Q1, with 670 contracts. Procurement contracts got here in second, with 185, contracts with a number of scopes got here in third, with 143, design and engineering offers have been fourth, with 71, and building offers rounded out the highest 5 scope segments, with 64 contracts, the chart confirmed.
Set up contracts got here in at six and asset retirement contracts hit three in the course of the interval, the chart revealed.
Within the launch, GlobalData mentioned among the notable contracts in the course of the quarter embrace Samsung Heavy Industries’ $3.44 billion building contract for 15 LNG carriers and Tecnicas Reunidas and Sinopec Engineering Group’s two lumpsum contracts, mixed value roughly $3.3 billion, from Saudi Aramco for the Engineering, Procurement, and Building (EPC) of the Riyas Pure Fuel Liquids (NGL) fractionation facility in Saudi Arabia.
Within the petrochemical sector, Tecnimont recorded an roughly $1.1 billion contract from Sonatrach for the Engineering, Procurement, Building, and Commissioning (EPCC) of a brand new Linear Alkyl Benzene (LAB) plant with a capability of 100,000 tons every year and utilities infrastructure in east Algeria, GlobalData acknowledged within the launch.
“Many conventional oil and gasoline business tasks are getting delayed or postponed because of considerations over demand outlook in oil and gasoline consuming nations amid the looming recession and excessive inflation, which is clearly evidenced by the lower in each contract worth and quantity,” Pritam Kad, an oil and gasoline analyst at GlobalData, mentioned within the launch.
“Contrarily, oil costs are anticipated to be favorable for producers because of potential provide disruptions arising from geopolitical dangers,” Kad added.
“GlobalData expects that delayed or close to completion tasks are prone to be pushed ahead within the mid-term,” Kad continued.
In a separate launch despatched to Rigzone again in February, GlobalData mentioned the oil and gasoline business confronted a big quarter on quarter decline of 16 % in disclosed contract quantity from 1,401 in Q3 [third quarter] 2023 to 1,172 in This autumn 2023.
“Nevertheless, regardless of this downturn, a marginal uptick in total contract worth hints at resilience in the course of the difficult instances,” the corporate added in that launch, which identified that GlobalData’s newest report on oil and gasoline business contracts on the time revealed that total contract worth elevated from $46 billion in Q3 2023 to $48 billion in This autumn 2023.
In one other launch despatched to Rigzone in Might final 12 months, GlobalData famous that the general oil and gasoline business’s disclosed contract worth noticed a big quarter on quarter lower of 48 % in Q1 2023.
In that launch, GlobalData highlighted that its newest report on oil and gasoline business contracts on the time revealed that total contract worth decreased from $64.9 billion in This autumn 2022 to $34.01 billion in Q1 2023.
“The contract quantity additionally decreased from 1,623 in This autumn 2022 to 1,440 in Q1 2023,” GlobalData acknowledged in that launch.
To contact the writer, electronic mail andreas.exarheas@rigzone.com