The oil and gas industry has seen a flurry of significant contract awards in recent months, spanning various segments from logistics and exploration to engineering, procurement, and construction (EPC) and even the burgeoning carbon capture and storage (CCS) sector. These deals highlight continued investment in traditional hydrocarbon production alongside a growing emphasis on decarbonization efforts.
In a substantial development in the North Sea, Aberdeen-based logistics and supply company ASCO secured a landmark nine-figure contract with an undisclosed energy operator, believed to be Spanish energy company Repsol. This five-year agreement, effective from July 1, 2025, is valued at approximately £150 million and encompasses ASCO’s full suite of integrated logistics services, including quayside operations, warehousing, materials management, and environmental services. The deal reinforces ASCO’s position as a leading logistics provider in the region, even as the industry navigates the transition towards renewable energy.
Meanwhile, TotalEnergies and QatarEnergy have expanded their exploration footprint in Algeria, securing the Ahara license, an onshore area spanning 14,900 square kilometers. TotalEnergies will operate with a 24.5 percent stake during the exploration and appraisal phases, with QatarEnergy also holding 24.5 percent, and Algeria’s national oil and gas company Sonatrach SpA retaining a majority 51 percent stake. This move builds on TotalEnergies’ existing presence in Algeria, which contributed significantly to its 2024 production.
In the realm of carbon capture and storage, Expro has secured a key contract to deliver integrated well testing services for a high-profile CCS project offshore the UK. Commissioned by the Northern Endurance Partnership (NEP), a joint venture between bp, TotalEnergies, and Equinor, Expro will appraise two wells in the Endurance reservoir for future CO2 storage suitability. This contract underscores the increasing importance of CCS in the UK’s decarbonization strategy and leverages Expro’s extensive experience in reservoir appraisal.
Looking at broader trends, the first quarter of 2025 saw a marginal decline in global oil and gas contracts by total disclosed value, reaching $33.33 billion compared to $39.43 billion in the previous quarter. However, high-value contracts, particularly from Maire, Sinopec, and Larsen & Toubro, helped cushion this downturn. Operation and maintenance contracts dominated, representing 48% of the total, with the upstream sector reporting the most awards. Asia led regionally in contract volume, followed by Europe and North America.
Looking ahead, the global offshore EPC contract award value is forecast to see a marginal 1% year-on-year boost in 2025, totaling $54 billion. This is driven by 53 greenfield and brownfield final investment decisions, although high supply chain costs and a softening Chinese oil demand are influencing project timelines. The Middle East, Africa, and the Americas are expected to be key drivers of offshore EPC activity.
Petrofac’s Asset Solutions division has also had a strong start to 2025, securing $500 million worth of scope expansions and new contracts across the UK, Europe, Middle East, Africa, Asia Pacific, and the U.S. These awards cover late-life asset management, decommissioning, and integrated services, highlighting the company’s growth in core markets and strategic expansion into new geographies.
ADNOC Gas has been particularly active, awarding $5 billion in engineering, procurement, and construction management (EPCM) contracts for the first phase of its Rich Gas Development (RGD) project. UK contractors Wood, Petrofac, and Kent were among the recipients. These contracts are crucial for optimizing and debottlenecking existing gas assets and unlocking new gas streams, aligning with ADNOC Gas’s strategy to significantly grow its earnings and production capacity.
Separately, Wood, through its joint venture with Tendrill International Sdn. Bhd, secured a five-year contract with Brunei Shell Petroleum Sdn Bhd (BSP) for brownfield engineering, procurement, and construction (EPC) services. This extends their established relationship in Brunei, where they will continue to deliver integrated, end-to-end projects across BSP’s offshore and onshore assets. Wood also secured approximately $100 million in contracts to design gas flaring reduction systems for major oil fields in Iraq, further demonstrating its commitment to sustainable energy solutions.
Finally, EnerMech was awarded a significant contract by ExxonMobil to provide a complete flowline decommissioning package for the Hoover Diana development in the Gulf of Mexico. This marks EnerMech’s first major decommissioning campaign in the region and involves integrating multiple service lines to safely remove hydrocarbons and prepare subsea flowlines for decommissioning.
