North-east's Asco setting sail on multi-million-pound contract extension

Logistics and materials-management operator Asco has been awarded a five-year contract extension worth millions of dollars with Equinor, Norwegian energy partner to the UK.

The Aberdeen-headquartered firm said it will provide a fully integrated logistics and materials-management offering, including quayside services, materials-management, environmental services, marine gas oil provisions and marine technical services with additional ad-hoc services as required.

It added that the service agreement will be delivered primarily from its Peterhead supply base and will support the local supply chain and regional employment opportunities. The business also said there will be continued investment in new technologies and innovation to boost efficiencies while also meeting both parties’ net-zero goals.

Allan Scott, group innovation director at Asco, said: “This contract extension reinforces our decade-long relationship with Equinor. It underlines the truly collaborative journey we have been on, working in partnership to implement streamlined, leaner processes through digitalisation and a digital track and trace. The digitalisation project has given Equinor real-time visibility across their operations, removing any potential variation completely, to give them 100 per cent process control.”

Linda Kada Hoiland, vice president of procurement global operations for Equinor, said: "We are pleased to have Asco on board with us for another five years. Both organisations are driven to develop new and innovative ideas to improve our processes. We are committed to working collaboratively to streamline our processes, drive innovation and help create a low-carbon supply chain that also supports local employment and investment in the region.”

Mike Coull, Equinor UK leader of supply chain, added: “This is a fantastic opportunity for both Equinor and Asco to shape our future as one team going forward. Asco are experts in the supply logistics field, and we will empower them to deliver on our behalf in the years ahead.”

Visibility

Equinor and Asco staff at the latter's Peterhead South Base Quayside. Picture: contributed.

As part of the previous contract with Equinor, Asco rolled out its Integrated Logistics Management System (iLMS), focusing on increasing the visibility and control of Equinor's materials, and which it says is able to reduce process time by up to 70 per cent from start to finish.

Both Equinor and Asco say they are passionate about creating a low-carbon and efficient supply chain, capitalising on technological advancements such as the use of artificial intelligence to optimise transport journeys and streamlining processes.

Asco says its environmental initiatives include it recently rolling out the use of hydrotreated vegetable oil within its UK HGV fleet, introducing electric vehicles into its smaller fleet, and having committed to be a net-zero-emissions business by 2040.

Equinor says it aims to become a net-zero energy company by 2050, including emissions from production and final consumption. The company adds that it has accelerated investment in renewables and intends to reduce its net-carbon intensity by 20 per cent by 2030 and 40 per cent by 2035.

In May it revealed its results for 2021, saying it had boosted turnover and profits despite the pandemic and “extreme pressure” on the energy sector. That came after it in April said it had inked a new Vestas wind farm contract.