Aberdeen-headquartered energy services firm Asco has been awarded a North Sea deal worth more than £100million with operator CNOOC.
Asco will provide a range of logistics, materials management, waste and marine gas oil supply services to CNOOC’s assets in the Central North Sea.
The five-year deal extends a contract which the firm has had since 2006, with options for a further six years.
Asco will provide the services from its supply base in Peterhead, as well as from Aberdeen and Scrabster.
Chief executive Peter France said: “We are delighted to extend this long-standing partnership. Early in the negotiations we recognised the need to work collaboratively and drive a culture of innovation and efficiency to deliver a strong and sustainable contract, protecting jobs and providing opportunities for the next generation.
“We are looking forward to supporting CNOOC Petroleum Europe Limited for many more years and delivering on our two fundamental obsessions of safety and service excellence.”
In September Mr France reported Asco enjoyed a 30% increase in adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) in the first half of 2019.
He also said Asco, whose core business is the operation of supply bases, continued to be “squeezed tight” on pricing by customers, but was hopeful rates would return to a more “suitable” level.
In October, while publishing its full year accounts for the 2018 financial year, the firm predicted a “return for growth” after pre-tax losses narrowed to £48.2m in 2018, from £53.3m the previous year.
Headquartered in north-east Scotland, the firm is the largest supplier of outsourced logistics services to the oil and gas industry.
Asco employs more than 1,500 people worldwide across 70 locations.
The company is owned by DH Private Equity, which acquired the business in 2011, as well as Asco management.
DH, established in 1985, also has French-headquartered manufacturer KP1 and Italy’s Zobele Group in its portfolio.
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