(offshore-energy.biz) Despite the challenges facing the fossil fuel industry, demand for hydrocarbons remains resilient, as confirmed by global engineering, procurement and construction (EPC) contract activity in the offshore oil and gas landscape. The range of new projects expected to reach EPC stage this year will result in awards worth billions of dollars for contracts related to subsea equipment, offshore platforms, floating production units and liquefied natural gas (LNG) equipment and facilities. Based on research by Westwood Global Energy, an energy market research and consulting firm.
The world's hunger for energy is growing daily, even as different aspects and combinations of the energy trilemma continue to dominate policy at the government level, with some trying to balance the benchmarks of energy security, affordability and sustainability, while others opting for one or two as part of their primary focus Energy security or the transition to more environmentally friendly sources.
This often results in the fossil fuel lobby and the renewable energy club being pitted against each other, with participants choosing one or the other to drive development, even though energy experts argue that the energy mix will require all energy sources to thrive to meet the growing demand and keep the lights on for the foreseeable future.
Westwoods Mark Adeosun, Research Director – SubseaLogix & PlatformLogix, has outlined that EPC contracting activity related to offshore oil and gas field development and carbon sequestration projects remained stable in 2024, with overall EPC award value for associated subsea equipment and offshore platforms at approximately 1 .5% 52 billion dollarsan increase of 18% compared to the previous year, although the annual number of final investment decisions (FIDs) recorded fell by 33%.
Adeosun points out that the difference between the FID count and the trend of EPC award value between 2023 and 2024 is due to the awarding of large ticket items, such as: Petrobras' FPSOs P-84 And P-85 Units with an EPC value of over $8 billion, along with the delayed EPC award confirmation for sleeve'S Spartawhich had announced the FID field in December 2023, but the EPC award Seatrium for the floating production semi-submersible boat (FPSS) The unit was only confirmed in January 2024.
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