ASCO has been awarded a five-year contract extension to provide Equinor with logistics and quayside services from its Peterhead base.
The logistics and materials management group did not put a specific value on the award, but said the “multi-million-pound” contract would strengthen a long-term collaboration between the two companies.
As well as handling logistics and materials, ASCO will provide quayside and environmental services, marine gas oil (MGO) and marine technical services, alongside ad-hoc support, all delivered largely from its supply base in Peterhead.
The group said the award would help support the local supply chain and regional employment opportunities, and enable continued investment in new technologies in pursuit of both companies’ net-zero goals.
Equinor UK leader of supply chain Mike Coull described the award as a “fantastic opportunity” for both organisations to shape operations as one team.
“We have enjoyed great service from ASCO with shared focus on safety, value and low carbon solutions remaining paramount. ASCO are experts in the supply logistics field, and we will empower them to deliver on our behalf in the years ahead,” he added.
“A big thank you to both commercial and operational teams from both companies for their efforts in achieving this goal.”
Under its previous contract with Equinor, ASCO rolled out its integrated logistics management system (iLMS), which aimed to increase the visibility and control of Equinor’s materials.
iLMS replicates a conventional retail item tracking system, allowing complete material visibility and traceability throughout the management timeline, which it claims can reduce processing time by up to 70% from start to finish.
ASCO group innovation director Allan Scott said the award underlines the “truly collaborative journey” it has taken with the Norwegian operator, enabling leaner processes through digitalisation and a digital track and trace.
“The digitalisation project has given Equinor real-time visibility across their operations, removing any potential variation completely, to give them 100% process control,” Mr Scott added.
Further improvements have been mooted, including the use of artificial intelligence to optimise transport journeys and streamlining processes.
It comes amid a range of other measures adopted by ASCO as it aims to reach net zero by 2040 including a recent drive to switch its 100-strong heavy goods vehicle fleet from fossil fuels to hydrotreated vegetable oil (HVO) diesel.