Costain Awarded Oil and Pipelines Agency Contract
8 March 2012
Costain, one of the UK's leading engineering solutions providers, announces that it has been awarded a three-year asset support contract for the operation and maintenance of the Government Pipeline and Storage System.* The contract is expected to have a value over three years of approximately £60m, and has the potential to extend for a further two years.
The Group was awarded the contract by the Oil and Pipelines Agency (OPA), which manages the Government Pipeline and Storage System and six Royal Navy oil fuel depots on behalf of the Ministry of Defence. Under the terms of the contract Costain will be responsible for asset management and capital project delivery in addition to operations and maintenance of the entire network.
As well as bringing to bear Costain’s skills and capability in engineering, construction and project management, the operations and maintenance experience of Promanex, which the Group acquired in August 2011, was instrumental in securing the contract.
Andrew Wyllie, Chief Executive of Costain, commented:
“The award of this contract by a new customer demonstrates the value that Promanex has brought to Costain in providing the full life of asset services in high growth market sectors. It also marks an important stage in the ongoing transformation of the Group as we continue to broaden our service offering, both organically and by targeted acquisitions.”
“Our strategy of focussing on major customers whose spending plans are driven by national need, regulatory commitments or essential maintenance requirements continues to deliver results. We look forward to working with the OPA to ensure the safe, cost effective and efficient operation and maintenance of this strategic national asset.”
*As referenced in the full year results announcement of 7 March 2012