Repsol Sinopec Resources has let 10 major new contracts – reflecting its long-term strategic commitment to the North Sea and the UK supply chain while also seeking to reduce operating costs.
The new contracts are for provision of all maintenance and construction labour, engineering support services and fabric maintenance, covering its offshore operated assets and the terminal at Flotta.
Repsol took over Talisman Energy last year and the combined group now operates 10 fixed offshore platforms; two floating production facilities; and onshore terminals at Flotta in Orkney and at Nigg Bay.
In each category, contracts have been awarded to at least two providers to drive performance improvement and innovation with the intent of rewarding excellence.
New, simplified labour supply contracts, replacing the previous maintenance services model, have been awarded to Amec Foster Wheeler and Petrofac.
Engineering services support covers all brownfield modifications and repair orders. Awards have been made to a tiered group of contractors on a call-off basis, reflecting the asset-based structure and allowing assets to align engineering scopes with suppliers whose core competence makes them best placed to execute them efficiently.
Successful bidders are:
- Tier 1 (major integrated contractors): Amec Foster Wheeler; Petrofac; Wood Group PSN
- Tier 2 (detailed design; construction and FEED capability): PD&MS Group; Apollo Offshore Engineering; Step Change Engineering
- Tier 3 (fabrication-focused): Caledonian Petroleum Services; Ross-shire Engineering
- Fabric maintenance contracts have been awarded to Stork and Bilfinger Salamis.
Bill Dunnett, Managing Director, Repsol Sinopec, said: “Now is the right time to make a fundamental change to the way we manage our major service contracts. These awards will drive greater innovation and competition in the supply chain, and improve accountability within our own business. We’re also looking to the new contractors to help in the development, training and competency assurance of our teams.
“Performance of our new contracts is a fundamental element of our ongoing transformation to an effective and sustainable operation – even in the current challenging market. This is a great opportunity for the local supply chain that will help us deliver long-term value to our shareholders, partners and employees.”