IOS Proceeding with Expansion Following Contract Wins
UK storage and inspection firm Independent Oilfield Services (IOS) is proceeding with a $4 million (GBP 3 million) expansion after securing two new contracts worth more than $16 million (GBP 12.5 million).
IOS will develop its Longside Supply Base near Peterhead in order to ‘significantly expand its capacity to service the two new clients, as well as IOS’s existing customer base,’ according to a company statement.
Last month, IOS announced that it had purchased its previously leased 32 acre site at the former Longside airfield for $3.4 million (GBP 2.5 million).
Following the granting of planning permission at the end of last year to create an additional 35 acres of storage, work has now begun on the construction of new warehousing, an inspection facility and a machine shop. The expansion will create around 20 additional jobs.
“We are delighted to have won these two important new contracts,” Glynn Geddie, managing director at IOS, said in a company statement.
“Our expansion will significantly increase our capacity to meet the operational requirement of all our clients,” Geddie added.
Sumitomo Corporation Europe awarded IOS an eight-year, $14 million (GBP 10 million) contract to carry out OCTG management and inspection services, while Odfjell Drilling agreed a $3.4 million (GBP 2.5 million) contract for the management and inspection of drillpipe.
Over the past year IOS said it had enjoyed a period of steady growth. The company is forecasting a 30 percent turnover increase over the next 12 months.
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