Storage and inspection firm Independent Oilfield Services (IOS) has secured two new contracts worth more than £12.5 million ($17 million).
IOS said on Wednesday that Sumitomo Corporation Europe awarded the company with an eight-year £10 million contract to carry out OCTG management and inspection services.
Also, Odfjell Drilling awarded IOS with a £2.5 million drillpipe management and inspection contract.
The company added that it was proceeding with a £3 million expansion of the Longside Supply Base near Peterhead to expand its capacity to service the two new clients as well as existing clients.
This is the second phase of a new £5.5 million investment by IOS in the region. Last month, IOS announced that it had purchased its previously leased 32-acre site at the former Longside airfield for £2.5 million. The company retains a 15-year option to lease additional sites at Longside with the potential to extend their facility to 100 acres.
Following the granting of planning permission, work on the construction of new warehousing, inspection facility, and machine shop is underway. The expansion will create around 20 additional jobs with the company.
According to IOS, the new inspection facility will give it additional capacity to handle the Sumitomo contract by preparing and inspecting up to 300 joints a day which is three times the current capacity.
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.”
Also included in the expansion plans is a new machine shop which will become operational this month and an additional 2,000 m2 of new warehousing will add to IOS’s existing indoor storage capacity of 4,000 m2.
Glynn Geddie, Managing Director at IOS, added: “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.”
Future plans for growth at the site include additional warehousing for increased internal storage.