The global oil and gas industry’s total contract value reached US$42bn in Q2 2019, a massive 79% increase on Q1’s value of US$23.4bn according to GlobalData, a leading data and analytics company.

Pritam, Oil & Gas Analyst at GlobalData, says: “This rise occurred despite there being a slight decline in the number of contracts from 1,453 in Q1 to 1,283 in Q2, 2019.

GlobalData’s latest report: ‘Q2 2019 Global Oil & Gas Industry Contracts Review’, reveals that the upstream sector constituted 71% of the total contracts awarded, with  858 contracts. The midstream and downstream/petrochemical sector recorded 245 and 100 contracts, respectively. The increase in contract value was largely driven by engineering, procurement and construction (EPC) contracts in the midstream sector such as Bechtel’s $9.57bn agreement with NextDecade for the Rio Grande liquefied natural gas (LNG) project in Texas and Saipem, McDermott International and Chiyoda – CCS JV’s $8bn contract with Anadarko Petroleum for the development of an onshore LNG park in Mozambique.

Operation and Maintenance (O&M) represented 60% of the total contracts in Q2 2019, followed by contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement, which accounted for 12%.

Europe constituted 37% of total contracts in Q2, with a total of 471, followed by North America, which accounted for 33% with 421.