Bilfinger in £100m deal with BP over Scottish terminals

Oil major BP yesterday announced a £100 million maintenance contract renewal with engineering group Bilfinger in a move that will secure more than 240 jobs in Scotland.

BP's Sullom Voe oil Terminal on Shetland
BP's Sullom Voe oil Terminal on Shetland

Under the agreement the German firm will provide maintenance services at two of its oil and gas terminals, the Forties Pipeline System at Grangemouth and Sullom Voe Terminal, Shetland.

The three-year contract covers services such as scaffolding, rope access, insulation, blast cleaning, painting and fire-proofing and will be delivered by Bilfinger’s industrial services division.

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News of the huge contract came as BP’s rival Shell revealed that its multi-billion pound deal to buy oil and gas firm BG Group is set to lead to some 2,800 job losses.

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Bilfinger said the contract with BP will involve more than 240 employees, with many based permanently on-site at the BP facilities. Around 24 of the roles will be apprenticeship or trainee positions.

Bilfinger’s industrial services is one of two Bilfinger UK businesses to have existing agreements with BP, alongside its electrical engineering division. The two groups have worked together in the UK for more than six years.

Duncan Hall, executive president of Bilfinger Oil & Gas, said: “BP is a long-term strategic partner for Bilfinger and we support them across their upstream and midstream assets. We have been delivering these specialist and critical areas of plant maintenance across these key UK assets since 2010.

“This latest agreement is a landmark for Bilfinger in the UK which further cements our position as a leading support services provider to the energy sector. Two-thirds of all diesel and petrol sold in the UK comes from production assets that we help maintain.”

The Bilfinger UK group of businesses also includes real estate advisory firm Bilfinger GVA and integrated facilities management provider Bilfinger Europa. In total, the group employs more than 9,000 people across the UK generating revenues of £650m annually. The UK is the second largest market for Bilfinger ­globally.