Technip remains the most successful contractor on the UK Continental Shelf (UKCS) with 25 secured contracts over the past four years.
These were the findings of the Energy Industry Council (EIC)’s latest report into contracting activities offshore Norway and UK based on EICDataStream, the EIC’s global project database that tracks over 10,000 active and future projects worldwide.
The report found that Technip leads the field on the UKCS followed by Subsea 7, with 21 contracts, and GE Oil & Gas with 15. Aker Solutions, which is the most successful contractor on the Norwegian Continental Shelf, has secured 11 contracts on the UKCS between 2010 and 2014.
In terms of with whom the contracts have been won (see graph), BP has led contracting activity in the UKCS in recent years awarding 35 major contracts across seven North Sea developments. In total BP has awarded four FEED contracts, 16 EPC contracts and 15 SURF contracts, over half (20) of which are associated with expansion projects.
ConocoPhillips, Chevron, Total, GDF Suez and Statoil also account for 58 major contracts awarded and Nexen, a previously independent oil company that was acquired by Chinese national oil company CNOOC for US$18 billion in February 2013, remains second behind BP in terms of activity. Nexen’s main area of investment has been the Golden Eagle Area Development (Golden Eagle, Pink and Hobby oil fields), for which the company has placed 12 major contracts (4 FEED, 7 EPC, and 1 Subsea/SURF) since January 2010.
Talisman Energy (Sinopec), along with independents Ithaca Energy, Enquest and Premier Oil have awarded 47 major contracts in the Central North Sea. These include Premier Oil’s recently approved Catcher, Varadero, Burgman and Bonneville project to produce up to 50,000 bbl/d from the four discoveries, which will be tied back to a newly commissioned FPSO. Premier Oil and its partners have awarded a total of 1 FEED, 4 EPC and 1 Subsea/SURF contract on this project since the beginning of 2014.
Neil Golding, Head of Oil & Gas at the EIC, concludes: “In both the UK and Norway, we have seen a reduction in the number of major contract awards placed during the last 12 months where for both countries, the rise in contracting costs across the North Sea has played a major role in the slowdown of activity.”
He continues: “Although no development has to date been cancelled in either of these provinces, there have been a number of delays and postponements to projects as operators return to concept plans and review the economics of developments. However, the introduction of tax allowances in the UK will hopefully have a positive impact on contracting activity in the near future.“
To find out more about the EIC, the leading trade association providing dedicated services to help members understand, identify and pursue business opportunities worldwide, please visit the UK Pavilion at ONS and the EIC stand – 980 in Hall J.
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