WellConnection IOS has secured approval from HMRC for a new bonded warehouse area at its UK base, the first and largest of its kind in North East Scotland.
The bonded area was built last year as part of a seven acre expansion at the company’s Peterhead site. Having now secured permission to operate, this is an important development for customers looking to ensuring an efficient, safe and secure supply of oil country tubular goods (OCTG) to the UKCS, such as drill, casing or tubing pipes.
This customs warehouse area means dutiable steelwork can be stored on-site and subjected to IRM services without requiring payment of duty, until the goods are exported to new location.
“We are pleased to receive approval from HMRC to operate our bonded area, which is set to help ease the financial and logistical burden often faced in the import and export of goods,” Glynn Geddie, CEO of WellConnection IOS, said. “This is particularly important in the North East of Scotland due to the international nature of the oil and gas sector.”
“The impact of the UK having left the EU on 31 January may also affect the customs process,” Mr Geddie added. “With trade agreements still being negotiated, it’s unclear how that will impact the free movement of goods with EU countries and therefore the need for bonded areas could become even greater. We expect to see demand at our Peterhead site increase throughout 2020 and beyond.”
WellConnection IOS is also set to broaden its service offering at its UK site following an application to SEPA to offer a naturally occurring radioactive materials (NORM) cleaning and handling solution.
“As an industry leader in Norway for NORM services, we’re excited to bring our track record and proven approach to the UK and expand the capability at our Peterhead site,” Rune Haddeland, CEO at WellConnection Group, said.
“IOS is fully integrated into the WellConnection Group following our acquisition of the business last year, and there are key synergies between our UK and Norwegian operations which we are already capitalizing on,” Mr Haddeland added. “I’m pleased that we continue to grow and evolve as a business to fulfill our international ambitions.”