$54 billion in engineering, procurement and construction contracting opportunities on offshore oil & gas agenda for 2025

(offshore-energy.biz) Despite the challenges hitting the fossil fuel industry, demand for hydrocarbons remains steady, as confirmed by the global engineering, procurement, and construction (EPC) contracting activity across the offshore oil and gas landscape. The batch of new projects, which are expected to reach the EPC stage this year, will lead to awards worth billions of dollars for jobs related to subsea equipment, offshore platforms, floating production units, and liquefied natural gas (LNG) equipment and facilities, based on the research conducted by Westwood Global Energy, an energy market research and consultancy firm.  

The global appetite for energy is growing daily, even as different aspects and combinations of the energy trilemma continue to drive policies at the government level, with some trying to balance the energy security, affordability, and sustainability scales while others pick one or two to tackle as part of their primary focus either on energy security or the transition to greener sources.

This often leads to pitting the fossil fuels lobby and the renewables club against each other by making participants pick one or the other to push toward development, even though energy experts argue that the energy mix will need all power sources to meet the growing demand and keep the lights on for the foreseeable future.

Westwood’s Mark Adeosun, Research Director – SubseaLogix & PlatformLogix, has outlined that the EPC contracting activities related to offshore oil and gas field development and carbon sequestration projects remained resilient in 2024, with the EPC award value for associated subsea equipment and offshore platforms totaling approximately $52 billion, an 18% uptick year-on-year (YoY) despite a 33% drop in the annual number of final investment decisions (FIDs) recorded.

Adeosun points out that the difference between the FID count and EPC award value trend between 2023 and 2024 stems from the award of large ticket items such as Petrobras’ FPSOs P-84 and P-85 units with an EPC value of over $8 billion, alongside the belated EPC award confirmation for Shell’s Sparta, which had the field FID announced in December 2023 but the EPC award to Seatrium for the floating production semi-submersible (FPSS) unit did not get confirmed until January 2024.

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