Clariant Oil Services Wins $75m BP North Sea Contract

Clariant Oil Services announced a contract award from BP for the supply of chemicals and chemical management services. The total contract, which covers a three year period plus three two-year extension options, is estimated to be worth up to $75 million in the first three years. This contract will be one of the largest such contracts in the oil and gas industry.

The contract covers the Andrew, Bruce, Clair, Dimlington, Harding, Foinaven, Miller, Magnus, Schiehallion, Ula, Valhal, CATs and SVT, SNS and Wytch Farm assets. It encompasses the provision of core-team production chemists, technical expertise and offshore personnel to support the supply of production chemicals. This covers 87% of BP's production from the North Sea region.

BP and Clariant Oil Services signed a Global Framework Agreement for Chemicals Managed Services (CMS) contracts in January this year. The companies thus agreed on a strategic contracting approach, through which they could team up to solve production chemistry issues on BP assets worldwide, while simultaneously creating value for both parties.

Clariant Oil Services was also awarded a CMS contract with BP Indonesia earlier this year.

Clariant Oil Services has been providing chemical management services to BP in the North Sea for the past six years, but this award has doubled the number of assets covered. The new assets include the prestigious Clair development which is the largest undeveloped field on the UK Continental Shelf. Clair's first phase will produce recoverable reserves of 250 million barrels.

Commenting on the award, UK Business Manager, Raymond Stirton, said "We are delighted that BP chose to extend our CMS contract to include several new assets. As the North Sea enters a new era, our ability to respond rapidly to meet technical and supply chain challenges will be vital to our mutual corporate success. We believe that our ability to combine exemplary HSE performance, whilst delivering continuous improvement, played an important part in BP's decision. We look forward to the challenges ahead and to exceeding BP's expectations."

Peter Renwick, Regional Manager: "Our past performance demonstrated our capabilities to BP, and the award of this contract is a credit to our dedicated and hard working staff".

Clariant Oil Services is currently working with BP to implement management of change plans for the new assets, to allow the phased transition process to begin in both the UK and Norway sectors.