Westwood Insight – Contractors in buoyant mood as five-year offshore EPC spend to total $276 billion
A review of offshore oil and gas (O&G) engineering, procurement and construction (EPC) activities in the first half of 2022 has been a mixed bag, emboldened by Brent oil price averaging $70/bbl in 2021 and $107/bbl in 1H 2022, there were high expectations for an influx of offshore EPC awards.
Rig activity in the Asia Pacific (APAC) region, which comprises Southeast Asia and Australia, has become much busier in 2022. In Southeast Asia, however, all that activity is not completely due to increasing rig demand from operators.
Higher oil prices in the first half of 2022 and its impact on oil market fundamentals is already showing a material uptick in offshore exploration and production (E&P) investment and rig count. This will drive considerable demand for Offshore Support Vessels (OSVs) over the next two years, encouraging owners to reactivate their idle fleets.
Saudi Aramco’s initial push to nearly double its jackup fleet by the end of 2024 will result in 31 new contract awards, the majority of which are for long idled or stranded newbuild rigs
Westwood Global Energy Group has released its latest tranche of comprehensive quarterly offshore market reports and with it can reveal a few interesting offshore themes that emerged from the first quarter of 2022.