MEED Magazine reports that the value of contracts that have been awarded in the oil and gas sector in GCC countries dropped by 53 per cent.
The value of contracts declined from $21 billion in the first half of 2014 to $9.8bn in the first half of 2015, which is the lowest level for these projects since 2012, Bahrain-based Al Wasat Newspaper reports.
MEED adds, based on figures reached by MEED Projects affiliate, Kuwait contributed the lion’s share that reached $5.4bn in two main contracts, only to be implemented according to EPC (engineering, procurement, construction) system.
Petrofac, the international oil and gas services provider, has received an award notification for the first phase of Kuwait Oil Company’s (KOC) Lower Fars heavy oil development programme, which is located in the north of the country.
With a total project value of more than $4bn, Petrofac is leading a consortium with Greece-based Consolidated Contractors Company (CCC) as its partner.
Kuwait has awarded Spain’s Tecnicas Reunidas Company a $1.4bn EPC contract to build a gas treatment unit at its Mina Al-Ahmadi oil refinery.
The magazine adds that those two contracts represent half the value of oil and gas contracts awarded in GCC countries during the above-mentioned period, but it is still considered a decline from the $12.8bn awarded by Kuwait in the same period of 2014.
($1=AED12.11, at the time of publishing)