The month of October saw a diverse mix of contracts across the oil and gas supply chain, from offshore drilling to steel pipe supply. Oil & Gas Middle East lists – in no particular order or ranking – the major contracts secured for projects in the upstream sector for the month of September 2022.
Editor’s note: This list is not a ranking.
1. EPC contract
Saipem was awarded a record-setting contract by Qatargas for the North Field Production Sustainability Offshore Compression Complexes Project – EPC 2 located offshore Qatar. The contract value amounts to approximately $4.5 billion, Saipem announced on Wednesday.
The award represents the largest single offshore contract by total value in the company’s history. It follows the award in early 2021 related to offshore facilities for extraction and transportation of natural gas for the same field and demonstrates the continuity and the quality of Saipem’s performance in Qatar.
2. Offshore production
ADNOC awarded a contract worth $980 million (AED3.6 billion) to its subsidiary ADNOC Drilling to hire two jack-up offshore rigs and associated manpower and equipment.
The contract, awarded by ADNOC Offshore, will support the expansion of ADNOC’s production capacity as it responds to the growing global demand for lower carbon-intensity oil and gas.
3. Drilling rig service contract
China Oilfield Services Ltd (COSL) signed several long-term drilling rig service contracts with a “first-class international oil company in the Middle East,” with a total contract amount of approximately $1.9 billion, the company said.
The contract marks “deepening cooperation between the company and international oil companies in various fields of oilfield exploration and development,” COSL noted in a press release.
4. Steel pipes
McDermott Arabia Company Limited (MACL) awarded Saudi Arabia-headquartered Arabian Pipes Company a contract worth nearly $122 million (SR 450 million) to supply steel pipes.
Under the 12-month agreement, the Saudi listed firm will supply MACL with steel pipes, according to a recent bourse disclosure.
Arabian Pipes said that the deal will reflect on its income statements during the third quarter of 2023.
5. Welding line pipes
National Petroleum Construction Company (NPCC), a subsidiary of National Marine Dredging Company, signed a purchase order agreement with Abu Dhabi-based Al Gharbia Pipe Company (AGPC) for the supply of submerged arc welding line pipes for the Lower Zakum Long Term Development Phase-1 New Main Gas Line Project.
Earlier this year, ADNOC Offshore awarded NPCC the EPC contract for the LZ LTDP-1 New Main Gas Line Project. Expected to be completed in 2025, the project includes the construction of a new subsea pipeline that will run 85km from Zakum West Super Complex to Das Island and the provisions to construct, install and test a new platform at the super complex as well as a new gas receiving facility at Das Island.
