North-east storage and inspection firm Independent Oilfield Services (IOS) has announced two major new contract wins totalling more than £12.5 million.
In an eight year deal worth £10million IOS will carry out OCTG management and inspection services for the Sumitomo Corporation Europe, while a separate £2.5million contract will see the firm provide drillpipe inspection to Odfjell Drilling.
IOS also confirmed they will now move forward with a £3million expansion to its Longside Supply Base, near Peterhead, in order to increase capacity and service the two new clients.
The expansion represents the second phase of a new £5.5million investment by IOS in the region.
Last month, IOS, a privately owned and privately funded company, announced that it had purchased its previously leased 32 acre site at the former Longside airfield for £2.5million.
The deal allows the company to retain a 15-year option to lease additional sites at Longside and potential to extend their facility to 100 acres.
Glynn Geddie, managing director at IOS, said: “We are delighted to have won these two important new contracts. We have already made major investments in our Longside site to ensure that we provide a first class service in a state-of the-art facility for our customers. Our expansion will significantly increase our capacity to meet the operational requirement of all our clients.
“We chose the site at Longside because of its prime location only four miles from the quayside at Peterhead. The proximity to the port provides a very competitive alternative through reduced transport and fleet costs for oil and gas operators and service companies who berth at Peterhead’s deepwater quays.”
Following the granting of planning permission at the end of last year to create an additional 35 acres of storage, work has now begun on the construction of new warehousing, an inspection facility and a machine shop.
The expansion will create around 20 additional jobs with the company.
IOS claim that the inspection facility will give it additional capacity to handle the requirements of the Sumitomo contract.
The OCTG inspection and preparation resource will prepare and inspect up to 300 joints a day.
Donald MacKay, VP for European business at Odfjell Well Services, said: “We awarded this contract to IOS because the size of the facility and the range of equipment they have available enables quick and efficient loading and offloading which allows us to meet our very tight deadlines and deliver a reliable service to our growing client base.”
Unlike much of the industry, IOS enjoyed a period of steady growth last year.
With the addition of these new contract wins, the company has said it’s forecasting a 30% turnover increase by the end of 2018.