Equinor strengthens relationship with ASCO for five-year contract extension

Global integrated logistics and materials management company, ASCO, has been awarded a five-year contract extension with the Norwegian energy partner to the UK, Equinor.

The multi-million-pound contract strengthens the existing long-term collaboration between the two companies. ASCO will provide a fully integrated logistics and materials management solution, including quayside services, materials management, environmental services, marine gas oil (MGO) provisions and marine technical services with additional ad-hoc services as required.

The service agreement will be delivered primarily from ASCO’s Peterhead supply base and will support the local supply chain and regional employment opportunities. There will also be continued investment in new technologies and innovation to streamline efficiencies while also meeting both organisations’ net zero goals.

Linda Kada Hoiland, VP 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. We have enjoyed great service from ASCO with shared focus on safety, value and low carbon solutions remaining paramount. ASCO are experts in the supply logistics field, and we will empower them to deliver on our behalf in the years ahead. A big thank you to both commercial and operational teams from both companies for their efforts in achieving this goal.”

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. Critical to the success of running operations, the materials management aspect of the iLMS replicates a conventional retail item tracking system, allowing complete material visibility and traceability throughout the management timeline, reducing process time by up to 70% from start to finish.

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% process control.”

Both Equinor and ASCO are passionate about creating a low carbon and efficient supply chain, utilising technological advancements such as the use of artificial intelligence to optimise transport journeys and streamlining processes.

Equinor has set a clear ambition to become a net zero energy company by 2050, including emissions from production and final consumption. The company has accelerated investment in renewables and aims to reduce its net carbon intensity 20% by 2030 and 40% by 2035.

ASCO’s services are underpinned by the organisation’s three fundamental obsessions of safety, service excellence and sustainability. With digitalisation and modernisation at the heart of all operations, ASCO’s innovative processes and systems ensure the company is at the forefront of driving supply chain efficiency to support the energy transition. The company has recently rolled out the use of Hydrotreated Vegetable Oil (HVO) within its UK HGV fleet, introduced electric vehicles into its smaller fleet and has committed to be a net zero emissions business by 2040.