Even though 2022 was a challenging year for the oil and gas sector especially due to energy crisis triggered by the Russia-Ukraine conflict, several major contracts were secured by contractors in the offshore sector.
Here is a list of the top 5 offshore deals in the Middle East:
1. McDermott secured huge EPCI contract from QatarEnergy
The year kicked off with a major contract award to Houston-based McDermott from QatarEnergy for the engineering, procurement, construction, and installation of its North Field Expansion Project.
McDermott described the deal as one of the largest single contracts it was awarded in its company history. At the time, McDermott said that the structures would be fabricated in a facility with low-carbon or renewable power as part of its sustainability commitments.
The North Field Expansion Project will increase Qatar’s liquefied natural gas (LNG) production capacity significantly, from 77 million tons per annum to 126 million tons per annum. LNG is first expected to come from the expansion in 2025.
2. Saipem’s $4.5 billion contract from Qatargas
In October 2022, Saipem secured a record-setting contract from Qatargas for the North Field Production Sustainability Offshore Compression Complexes Project – EPC 2 located offshore Qatar.
According to Saipem, the $4.5 billion contract represents the largest single offshore contract by total value in the company’s history. At the time, Saipem said that the scope of work includes the engineering, procurement, fabrication and installation of two offshore natural gas compression complexes aimed at sustaining the production of the North Field, including two of the largest fixed steel jacket compression platforms ever built, flare platforms, interconnecting bridges, living quarters and interface modules.
3. ADNOC awarded $3.4 billion offshore contract
In August 2022, ADNOC awarded its subsidiary ADNOC Drilling two contracts totaling more than $3.4 billion to hire 8 jack-up offshore rigs. As part of the 15-year contracts, ADNOC Drilling’s rig fleet is expected enable ADNOC and its international partners to further unlock Abu Dhabi’s offshore oil and gas resources, creating significant value for ADNOC, its partners and the UAE.
A few months later, Abu Dhabhi’s state-owned giant awarded three framework agreements valued at $4 billion for integrated drilling fluids services ADNOC Drilling, SLB (formerly Schlumberger) and Halliburton for onshore and offshore fields.
4. Aramco awarded $11 billion contracts to major service companies
In November 2022, Saudi oil and gas giant Aramco inked 59 corporate procurement agreements (CPAs) with oilfield services majors Baker Hughes, Halliburton and SLB, among other companies, as part of its iktva programme.
These deals are expected to reinforce the Saudi giant’s supply chain resilience, leading to the development of materials manufacturing facilities in Saudi Arabia.
5. Saipem secured $1.2 billion offshore contracts
In December 2022, Saipem announced two new contracts in Guyana and Egypt worth $1.2 billion.
The first contract was awarded by US oil major Exxon Mobil, subject to government approvals for the Stabroek block offshore Guyana at a water depth of around 2,000 meters. The contract scope includes the design, fabrication and installation of subsea structures, risers, flowlines and umbilicals for a large subsea production facility.
The second contract has been awarded by Petrobel for the transportation, installation and pre-commissioning of 170 km of umbilicals for the Zohr Field, to be transported and installed between the central control platform (70 m water depth) and the subsea field (1,500 m water depth), connecting to the existing subsea production systems. The offshore campaign is planned to start during Q3 2023.