ASCO, the oil and gas logistics specialist, is braced for a fall in activity in the North Sea but has won a contract worth more than £100m to support BP's operations in the area, writes Mark Williamson.

Asked if the sharp fall in the oil price since June has impacted on its North Sea business, ASCO said activity levels remained strong in January. However, the company said the forecast for the second half of 2015 is for a significant reduction in activity levels among oil and gas firms which will impact across the supply chain. Against that backdrop ASCO said long term awards such as the contract won from BP were very valuable. The five year contract covers activities ranging from running supply-base and warehouse operations to managing waste for the oil and gas giant. ASCO said it provided these services to BP before but this is a new contract that it has won following a tender. Around 70 staff will be dedicated to fulfilling the contract, which will be run from ASCO's base in Aberdeen. Craig Lennox, chief executive of ASCO's European business, said the company was pleased to be building on a client relationship with BP that spans more than 20 years. In February ASCO won two contracts to provide services for Statoil in connection with the Mariner field the Norwegian firm is developing east of Shetland.