Cape Plc., Archer and many other service providers win contracts from the oil giant, ConocoPhillips.
ConocoPhillips awards a contract for its facility at Teesside, Seal Sands to an industrial service provider, Cape Plc. The million-dollar contract was announced on Thursday and will last for five years between the two parties. This will enable the energy manufacturer to get the services such as mechanical, instrumentation fabrication and much more.
ConocoPhillips and Cape both have not yet revealed the finances involved in this agreement between them yet. The contract is effective immediately and the services provider has already started working at the facility. The CEO of Cape showed his satisfaction with this recent deal by saying that this contract is of significant importance and the company is looking forward to making its relationship better with the oil giant even more in the future.
This is not the only contract the oil company has awarded a service provider this month. Archer received a contract that will also last for five years. ConocoPhillips will get services of mechanical wire lines for its shelf in Norway. Archer has provided services of such category to the company since 2009, but the ongoing contract is expected by January 2017. This new contract on the other hand will begin from May 1 this year and is expected to go on for five years just like Cape's contract.
Bibby was awarded a contract by the oil and gas company for maintenance for its Norpipe Oil pipeline. Similar to the Cape's contract, no finances involved has been revealed by any of the parties yet. Services such as project management, engineering, installation and much more will be given to the oil giant via the contract. The contract will be effective by the third quarter of this year only.
Many oil companies have been suffering and struggling in the oil industry because of the global low oil and gas prices including ConocoPhillips. It will announce it first quarter earnings report by the 28th of this month, which might end up either shocking investors or surprising them.
These recent contract has to be costly and the company might have given a fair amount of thought before awarding them, but only time will tell how deep under water the business has gone or it has not. It even planned to shut down its Lincolnshire gas pipeline which was the biggest systems in order to cut down costs. Not all is lost since the oil and gas prices are expected to increase at some point which might help the companies turn things around once again for themselves.
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