Craig International Supplies Secures Contract Renewals
Craig International Supplies (CIS), which provides oilfield procurement services to the global energy industry, has secured extensions on contracts wit...
Craig International Supplies (CIS), which provides oilfield procurement services to the global energy industry, has secured extensions on contracts with Nexen Petroleum U.K. Ltd, Transocean, Chevron North Sea Ltd and Chevron USA Inc estimated to be worth over £35 million.
Craig International Supplies specializes in sourcing and supplying general and specialist oilfield equipment and services along with delivering third party procurement.
The renewal of the contracts secures CIS as the largest privately-owned procurement house in Europe operating in the oil and gas industry; supplying regions including the North Sea, West and South Africa, the U.S., South America and Thailand.
CIS is a division of Craig Group, the global shipping and energy services firm headquartered in Aberdeen with a turnover in excess of £100 million.
With a £35 million turnover, CIS provides a diverse range of products and services to the global energy industry and has a buying power approaching £3 million per month, resulting in passing significant savings to its customers, creating for itself a competitive advantage.
Dave Allan, CIS Managing Director said: “These contracts reflect further confidence in the CIS business. This underlines our ability to source and supply oilfield equipment from our regional hubs around the world.
“Our in-depth expertise means that we provide clients with a knowledgeable and cost effective service, delivering products on time and on budget. We are able to deliver real value through effective supply chain management, rapid response, an unrivalled network of suppliers, e-business capability and internationally recognized accreditations.”
Visit the Craig International Supplies website.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”