BRUSSELS: The latest EIC Monitor report once again shows a significant decline in the levels of contracting activity across global upstream, midstream and downstream sectors in 1Q15. Overall figures show the number of major contract awards made since the last quarter contracting by 30% following a previous decline in the preceding quarter.
However, despite the overall number of contracts being awarded dropping, the value of some is substantial. But while long-term investment plans and new discoveries hold promise for the long term, these could take a long time to come to fruition for industry players.
The number of major contract awards across the global oil and gas industry has steadily declined during the last quarter (Q1: Jan-Mar 2015), dropping to 95 contract awards, a 30% decrease compared to 136 in 4Q14, and just 64% of the 149 contracts awarded in 1Q14.
In 1Q15, a total of 39 major contracts – EPC (Engineering, procurement & construction), FEED (front end engineering design) and subsea/surf (subsea, umbilicals, risers & flowlines) – were awarded across 30 upstream developments, falling 65% from 66 awards in 4Q14 and compared to 55 awards in 1Q14. A total of 21 EPC contracts, 6 FEED contracts and 12 subsea/surf contracts were awarded.
