The latest Energy Industries Council’s EIC Monitor report shows a continuing decline in the levels of contracting activity across the global midstream and downstream sectors in 2Q 2015 as the industry continues to battle with low oil prices. Overall figures show the number of major contract awards made since the last quarter have contracted by 17%, however a rise of 20% in the number of upstream awards is a source of cautious optimism for the industry.
The report found that the number of major contract awards across the global oil and gas industry continued to decline during the last quarter (2Q: Apr-Jun 2015), dropping to 100, a 17% decrease compared to 120 in 1Q 2015, and a 39% decrease from 165 contract awards in 2Q 2014.
Yet, a rise of 20% in the number of upstream awards is a source of cautious optimism for the industry. This was, however, a 71% from 69 contract awards in 2Q 2014. A total of 28 EPC contracts, nine FEED contracts and 12 Subsea/SURF contracts were awarded upstream.
In 2Q 2015, a total of 25 major contracts (EPC, FEED and Pre-FEED) were awarded across 25 midstream developments, decreasing 44% from 45 awards in 1Q 2015, and 52% from 52 contract awards in 2Q 2014.
And in 2Q 2015, a total of 26 major contracts (EPC, FEED and PMC) were awarded across 22 downstream developments, decreasing nearly 24% from 34 awards in 1Q 2015, and 41% from 44 contract awards in 1Q 2014.
Image: upstream contracts table/EIC