Cape plc, a provider of industrial services to the energy and natural resources sectors, has secured 400 North Sea jobs through new contracts with BP. The company has also won work on the Ichthys project in Australia.
The company informed on Monday that its UK subsidiary, Cape Industrial Services Limited, has secured two contracts to extend the group’s relationship with BP in the UK North Sea for a further three years. These contracts have a combined estimated value in excess of £150 million.
Cape noted that these contracts, which have been effective from January 1, 2017, secure 400 core jobs for Cape employees in the North Sea as the company provides Storage Tank Services, Industrial Cleaning, Heat Exchanger, Access, Insulation and Coating Services, along with General Operatives across BP’s upstream and midstream assets.
According to the company, this award follows an extensive process conducted by BP, consolidating the various services provided by Cape over recent years under one delivery team.
In addition to contracts with BP, the company said that its Australian subsidiary, Cape Australia Onshore, has secured a contract with JKC Australia LNG (JKC) for the provision of insulation and coatings services for the Ichthys Project Onshore LNG Facilities in Darwin, Australia.
This initial contract is expected to start in the second quarter of 2017, with the majority of activity expected to take place in the second half of the year.
With the additional benefit of the Ichthys award, the company said it now expects that the group’s full year performance for 2017 will be materially ahead of its previous expectations.
However, the company anticipates that 2018 will be a more challenging year, driven by the expected reduction in volume from the current high level of construction activity in Asia Pacific and the effect of project delays and margin pressures in the Middle East.