Westwood projects robust rebound in O&G engineering contracts, anticipates 77% spike in 2024

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Westwood anticipates 2024 oil and gas-related engineering, procurement and construction (EPC) contract value will rebound to close at approximately US$76 billion, a 77% increase compared to 2023.

This will be driven by the demand for approximately 324 subsea trees, 22 floating production units – including seven floating liquefied natural gas (FLNG) units, over 130 fixed platforms, 4,500 kilometers (km) of subsea umbilicals, risers, and flowlines (SURF) and approximately 3,900 km of line pipes.

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Westwood’s review of offshore O&G-related EPC contracting activities in 2023 indicated that the total contract award value closed at approximately US$39 billion, excluding letters of intent (LoI). Westwood found that a total of 273 subsea tree unit awards were recorded, over 3,330 km of SURF and 2,800 km of pipeline in 2023. 

“A total of 13 floating production systems (FPS) were sanctioned in 2023, including newbuild FLNG units, of which four units were newbuilds, three conversions and six upgrades/redeployments,” Westwood outlined in its January Offshore Data Dashboard. 

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Westwood said a total of 99 fixed platform EPC awards were recorded, with the Middle East accounting for 77%. Westwood noted that several significant contracts were awarded in 2023, including an award to Samsung Heavy Industries (SHI) for a newbuild FLNG unit set to be installed at Cedar LNG’s project in British Columbia, Canada. 

“Seatrium also confirmed an EPC contract award for a newbuild floating production semi-submersible (FPSS) unit for Shell’s Sparta field, for which the supermajor announced a final investment decision (FID) in the final week of 2023,” Westwood noted. 

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