Aberdeen-headquartered oilfield procurement specialist Craig International has won a long-term deal, potentially valued at over £20 million (about $24.5 million), in the UK sector of the North Sea with Ineos FPS.
Craig International revealed on Monday that it was awarded a five-year contract with two annual extension options, to deliver consolidated procurement services to Ineos FPS , following a competitive tender.
Jill MacDonald , joint managing director of Craig International, remarked: “We are thrilled to welcome Ineos FPS to our extensive portfolio of companies supporting the North Sea’s offshore energy industry, after a rigorous and competitive tendering process. Our e-commerce and approach to sustainability were major factors in this contract award.”
The procurement specialist says that this deal entails the supply of maintenance, repair and operations equipment for the Grangemouth base , which operates the Forties Pipeline System (FPS) . Under the terms of this contract, Craig International will provide these services from its Aberdeen headquarters using its digital platforms: ebuy and ecobuy .
The company explains that these two digital platforms provide cost and efficiency savings through the streamlining of electronic processes and the ability to source globally and supply locally, while the ecobuy platform also helps reduce carbon footprint.
“As the industry ramps up efforts to support global net-zero targets, there is a growing recognition that procurement plays a crucial part in reducing carbon emissions. Combining ebuy and ecobuy, we are actively addressing this through a suite of sustainable and technology-driven procurement solutions.” concluded MacDonald.
Furthermore, the firm elaborates that ecobuy offers the opportunity to select more sustainable products while combining orders to reduce vehicle, particularly HGV journeys. It has “a significant environmental impact” with less disposable materials, including plastics, and less fuel, while increasing the number of products that can be reused and recycled, according to Craig International.
Operating from the Central North Sea to the Central Belt in Scotland, the Forties Pipeline System is a 100 per cent Ineos-owned integrated oil and gas liquid transportation and processing system and oil and gas liquids from over 50 offshore fields and St Fergus flow through pipelines into the FPS.
When it comes to Craig International’s other recent deals, it is worth noting that the Aberdeen-based player secured over £5 million in November 2021 by winning two long-term contracts with Bilfinger Salamis UK and Altera Infrastructure for the provision of procurement services.
The first contract is for sourcing and supplying oilfield consumables for Altera’s UK and Brazil operations, while the second contract includes the provision of third-party procurement for goods and services to Bilfinger Salamis UK’s onshore and offshore business.