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Craig International deal with Spirit Energy could be worth £21m

Craig International joint managing director Jill Macdonald
Craig International joint managing director Jill Macdonald

An Aberdeen firm delivering vital services and supplies to the global offshore oil and gas industry said yesterday a new contract with Spirit Energy could be worth £21 million over seven years.

Oilfield procurement specialist Craig International announced a five-year deal, with a two-year extension option, to source and supply products for maintenance, repair and operations at Spirit’s onshore and offshore sites in the UK.

The company said it faced intense competition from suppliers bidding for 13 project sub-categories.

Its contract will see it provide third-party procurement services for nine of these sub-categories, including hand tools, lubricants, mechanical, lifting and health, safety and environmental (HSE) equipment.

Craig International said price, technical capability and HSE policies were factors in the decision-making.

Joint managing director Jill Macdonald said: “We have a strong track-record in the energy industry, with a growing global reputation.

“In the North Sea we are a market leader, with around 75% of the market share.

“Having worked in this region for more than 20 years, we also have a deep knowledge of what UKCS (UK continental shelf) operators require and how we can best deliver third-party procurement that is time and cost-efficient.”

She added: “It was refreshing to be involved in such a collaborative, comprehensive tender process.”

Craig International works with a global network of pre-qualified suppliers to provide third party procurement from bases in Aberdeen, Cape Town, Calgary, Doha, Hamburg and Houston.

Its has worked with most of the major players in the UK North Sea market, including BP, Shell, EnQuest, Premier Oil and Chrysaor.

The firm is one of the two divisions of family-owned Craig Group, whose leisure arm operates the Kings Links Golf Centre in Aberdeen.

Accounts for Craig International and its parent were lodged at Companies House earlier this year.

Craig International reported a 20% increase in turnover to £100.2 million, from £83.4m a year earlier, across UK and international operations during the 12 months to April 30 2018.

Craig Group figures for the six months to April 30 showed losses of £239,000 on turnover of £48.8m, which reflected a restructuring of the business after the sale of emergency response and rescue vessel division North Star Shipping to international investors in October 2017.

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