Repsol/Sinopec overhaul UK offshore engineering arrangements

July 12, 2016
Repsol Sinopec Resources UK has introduced new contracting strategies to support its long-term commitment to the North Sea and the UK supply chain.

Offshore staff

ABERDEEN, UKRepsol Sinopec Resources UK has introduced new contracting strategies to support its long-term commitment to the North Sea and the UK supply chain.

The joint venture company, formerly known as Talisman Sinopec Energy UK, was created following Repsol’s acquisition of the global assets of the former Talisman Energy Inc. in 2015.

It operates 10 fixed offshore platforms; two floating production facilities; and onshore terminals at Flotta in Orkney and at Nigg Bay, northeast Scotland.

The board has approved the award of new contracts covering maintenance and construction, engineering support and fabric maintenance: these cover the company’s UK offshore operated assets and the oil terminal at Flotta, Orkney.

In each category, the company has awarded contracts to at least two providers in an attempt to encourage performance improvement and innovation.

The company says its move toward an asset-focused organizational structure last year has led to improved HS&E performance, reducing costs and increasing production.

This, it adds, is part of a broader transformation program that includes investing in the long-term integrity of its asset portfolio.

It has issued new, simplified labor supply contracts, replacing the previous maintenance services model, toAmec Foster Wheeler and Petrofac.

Engineering services support covers all brownfield modifications and repair orders, with awards to a tiered group of contractors on a call-off basis.

The successful bidders are:

  • Tier 1 (major integrated contractors): Amec Foster Wheeler; Petrofac; Wood Group PSN
  • Tier 2 (detailed design; construction and front end engineering design capability): PD&MS Group; Apollo Offshore Engineering; Step Change Engineering
  • Tier 3 (fabrication-focused): Caledonian Petroleum Services; Ross-shire Engineering.

Fabric maintenance contracts have gone to Stork and Bilfinger Salamis.

Bill Dunnett, managing director of Repsol Sinopec Resources UK, said: “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.”

Amec Foster Wheeler secured two three-year service contracts, both with options to extend by up to two years.

These cover maintenance and construction labor and engineering support for all the offshore operated assets and the terminal at Flotta.

One is a simplified labor supply contract replacing the previous maintenance services model for the Arbroath; Bleo Holm; Buchan; Clyde; Claymore; Montrose; and Tartan platforms.

The second contract is for a tier 1 engineering services support, covering brownfield modifications and repair orders on a call-off basis.

Petrofac won a three-year engineering support services contract for major brownfield modifications across 12 assets, and a three-year offshore labor supply contract.

It will provide operations, maintenance, and construction personnel for the Saltire, Auk, Piper, and Fulmar platforms and the Flotta terminal. Around 300 personnel currently supporting these assets will transfer to Petrofac at the end of the transition period.


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