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Video: Construction Week In Focus | EPC contracting outlook [2018]

What does 2019 hold for regional EPC contractors amid the resurgence of oil prices?

Oil prices have recently seen upward movement, and engineering, procurement, and construction (EPC) contractors have been kept busy by Saudi Aramco and the UAE's Adnoc this year. But will oil prices hit $100, and what comes next for the Middle East's EPC firms?

On 3 October 2018, Brent crude hit a four-year high of $86 per barrel. Upstream contractors are likely to benefit from this price hike as operators spend on development and redevelopment schemes.

READ: Contract reportedly awarded for Abu Dhabi's $1bn Belbazem oil project

For downstream firms, the impact of these oil prices will depend on the region they predominantly operate in. Digitalisation is one of the major trends that EPC contractors will benefit from 2019 – few operators and contractors have forgotten the days of $40 per barrel, and digitalisation can help to boost efficiencies and cut costs.

Saudi Aramco and Abu Dhabi oil giant, Adnoc, have made notable progress on their projects in 2018. Adnoc diversified its business earlier this month, and Aramco is said to have prequalified companies for its Berri oilfield expansion. Both companies are also eyeing the Indian energy market.

READ: Baker Hughes wins Saudi Aramco's Marjan oilfield expansion contract

In this episode of Construction Week In Focus, Neha Bhatia, editor of Construction Week, speaks to Carla Sertin, editor of Oil & Gas Middle East, about the business forecasts for EPC contractors in 2019.

Construction Week In Focus is a weekly bulletin of the Middle East's top news from the real estate development, contracting, MEP, facilities management, and equipment sectors.

Subscribe to the Construction Week channel for the latest from the region's construction sector.

Construction Week In Focus episodes are published each Tuesday at 9am.

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Construction Week - Issue 751
Oct 13, 2019