Westwood: contractors in 'buoyant mood' as five-year offshore EPC spend to total $276 billion

A review of offshore oil and gas (O&G) engineering, procurement and construction (EPC) activities in the first half of 2022 has been a mixed bag, emboldened by Brent oil price averaging $70/bbl in 2021 and $107/bbl in 1H 2022, there were high expectations for an influx of offshore EPC awards. However, despite an increase in early-stage engagement of the supply chain by E&Ps and a steady growth in the number of pre-sanction projects, the optimism for a bumper year has been somewhat tempered, with Westwood’s 2022 offshore EPC contract award value now estimated to close at US$68 billion, 18% lower than our January 2022 outlook.