Costain wins three-year £60m oil contract

Costain has won a three-year £60m contract to maintain oil pipelines for the UK government.

The contractor was awarded the contract – which has the potential to be extended for a further two years – by the Oil and Pipelines Agency.

Costain said its acquisition of maintenance firm Promanex in August 2011 was “instrumental” in securing the contract award.

Andrew Wyllie, chief executive of Costain, said: “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.”