LONDON – The most recent EIC Monitor report shows a continuing decline in contracting activity.
A total of 49 major contracts engineering, procurement, and construction (EPC); front-end engineering and design (FEED); and subsea/subsea, umbilicals, risers, and flowlines (SURF) were awarded in 2Q 2015 across 37 upstream developments, rising 20% from 41 awards in 1Q 2015, but 71% down from 69 contract awards in 2Q 2014. A total of 28 EPC contracts, nine FEED contracts, and 12 subsea/SURF contracts were awarded.
Brazil and Norway have been hot spots in 2Q 2015, combining for 13 EPC contracts across 10 different upstream developments. In Brazil, a total of eight EPC contracts have been awarded. In the North Sea, five EPC contracts have been awarded on developments offshore Norway as operators proceed with current development projects.
Almost half of the upstream FEED contracts awarded were for projects in the Asia/Pacific region.
On the subsea/SURF front, the US is a hot spot, accounting for three contracts in the deepwater Mississippi Canyon area of the Gulf of Mexico. Offshore Brazil accounts for two such projects, and the North Sea, Statoil accounts for several projects.