Ineos FPS has awarded Bilfinger a new contract carrying out maintenance work across the Forties Pipeline System for up to five years.
Under the agreement, Bilfinger will provide access, insulation, coating and fireproofing services, as well as maintenance work at onshore and offshore facilities across more than 100 miles of the Forties Pipeline System (FPS).
The “large-scale” contract began in January and has a duration of three years, with an option of a further two-year extension.
Around 130 Bilfinger workers will be deployed at the facilities every day to carry out the work, from the company’s maintenance and insulation, scaffolding and corrosion protection (ISP) divisions.
The services firm said the award marked the continuation of a more than decade-long partnership with the infrastructure and chemicals giant.
“Our ambition to be the number one partner in efficiency and sustainability, together with our longstanding investment in development of local personnel, positions us perfectly to support INEOS extend the life of the critical FPS infrastructure while minimizing its environmental impact,” said Sandy Bonner, the firm’s UK president of engineering and maintenance.
“In our longstanding partnership, we continue to share the commitment to continuously improve the effectiveness of maintenance and the efficiency of service delivery; continually improving asset reliability and meeting operational efficiency challenges.”
One of the main arteries of UK hydrocarbon infrastructure, the FPS transports about 40% of UK North Sea oil and gas to shore and into the Ineos-led complex at Grangemouth.
© IneosIn operation since 1975, the system has a nominal capacity of over 600,000 barrels per day and carries output ashore from 85 offshore oil fields.
Ineos acquired the 235-mile long network from BP in a 2017 deal worth around $250 million. At the time flows stood at around 450,000 bpd.
However, chairman Jim Ratcliffe last year said that over its six years of ownership, oil flows through the system have declined by around 40%, and that the group would close one of its three processing plants due to lack of demand.
The comments came months before joint venture Petroineos announced plans to close the crude refinery at the Grangemouth site, amid plans to turn the facilities into an import terminal.
INEOS says the FPS has entered “a new phase in its lifecycle” and that work is now underway to prolong the life of the system by at least 20 years to support North Sea production into the 2040s.
This includes a £500million strategic investment announced in 2018 which will see it reconfigure the system to extend its life.
“We look forward to continuing this collaboration. Bilfinger’s drive for continuous improvement and its ability to respond flexibly to our priorities and strategic objectives have been key contributors,” added Ineos FPS operations director Ewan MacAngus.
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