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The UK oil and gas industry must learn from efficiency changes made to adapt to the lower oil price as it looks towards a future that could be delivered by Vision 2035.

Deirdre Michie, the CEO of Oil & Gas UK will tell a key industry conference tomorrow (June 6) that its focus must remain on efficiency, if industry is to maintain the competitive benefits it has worked so hard to deliver.

The head of the industry trade body will also flag the positive future for the basin that could be delivered by Vision 2035 – which outlines the opportunity for the UK Continental Shelf and supply chain over the next two decades.

In her keynote address to the annual Oil & Gas UK conference taking place in Aberdeen, the CEO will say: “We are moving forward with ‘cautious optimism’ recognising that oil market fundamentals have changed almost beyond recognition in the last 10 years and that they are not going to change back any time soon.

“Bold steps have been, and are being taken and we have great examples of companies working differently to improve cost and efficiency and working hard to lock these benefits in for the long term.

“We have halved our average unit operating costs over the last two years from around $30 to $15 per barrel while safely increasing oil and gas production.

“Reflecting improvements in capital efficiency, the development costs of the projects that have been sanctioned averaged half of those approved in 2013 and are expected to fall further this year.

“The sustainability of these improvements is always under scrutiny. We know that some of them have been achieved by tough rate reduction; job losses; retendering and, quite frankly, by putting severe pressure on the whole supply chain.

“But we also know that up to two thirds of these improvements are about efficiency and better ways of working.

“The cynics say that we are a cyclical industry that never learns its lessons. Well this time we have an opportunity to do things differently – especially if we remind ourselves that we have been part of the problem and therefore we all need – including the cynics – to be part of the solution too.”

Ms Michie adds: “Vision 2035 conceived by the Oil and Gas Authority and shared by industry and other stakeholders, states that we can be a global energy industry, anchored in the UK, powering the nation and exporting to the world.

“This vision is underpinned by the aspiration to add an additional £290 billion to the UK economy over time.

“We can deliver this by extending the life time of the basin through halving the rate of production decline and doubling the supply chain turnover – through extra domestic activity and raising the bar in terms of exports.”
ENDS

Notes to Editors:
A copy of the speech is available and Deirdre Michie is available for interview. Contact Communications Manager Jennifer Phillips to arrange – 01224 577279 / [email protected]

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

After 36 years and almost 150mm barrels of oil, the Buchan Alpha facility in the UK North Sea ceased production, as planned, on 12 May 2017. Buchan Alpha is a semi-submersible moored floating production vessel (originally a drilling rig). Decommissioning plans are well developed and ultimate dismantling and recycling of the vessel was competitively tendered. Repsol Sinopec Resources UK is pleased to announce the contract has been awarded to Veolia to be carried out at its Dales Voe site in Lerwick, Shetland. Read more…

Briggs Marine, one of the UK’s leading marine contractors, is pleased to announce it is expanding in the north west of England with new water-side facilities in Port of Liverpool. The 500 sq metre building will allow Briggs to offer a greater range of services, and will assist the company in further developing its offering in renewables, sub-marine engineering and port services in this busy region. Read more…

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has been awarded a significant contract with TAQA for subsea construction works in the Eider field, located 184 kilometres north-east of Shetland. With offshore operations to be completed this summer, the six month contract will see Bibby Offshore adopt a multi-vessel approach, utilising its subsea support and construction vessel Olympic Ares, and its diving support vessel, Bibby Polaris. Read more…

Restrata, a global leader in safety and security consultancy and training services, has appointed Craig Menzies to head up its UK emergency response and crisis management business, which includes the state-of-the-art Incident Management Centre (IMC) in Aberdeen.  Read more…

BP, on behalf of co-venturers Shell and Siccar Point Energy, is pleased to announce first oil from the redeveloped Schiehallion Area, following completion of the multi-billion-pound Quad 204 project in the west of Shetland region, offshore UK. UK project is the third of seven new upstream major projects expected to come on stream for BP in 2017. Read more…

ACE Winches, a leading global supplier of specialised marine deck machinery, successfully mobilized and installed a winch package for use on the jacket installation and float-over of the DolWin Topside platform.

The DolWin platform is one of the world’s largest high voltage direct current (HVDC) converter platforms, generating enough power to provide approximately 1 million households with clean energy. Measuring 100m in length, 70m wide, standing 90m and weighing approximately 15000te, the platform is located in the German Bight of the North Sea. Read more…

ABB Marine & Ports hosted their first ‘hot topic’ customer event in Aberdeen on 16 May.  The event highlighted the value of using marine digital services in today’s challenging market. The solutions highlighted the role of connectivity in reducing costs and increasing efficiency and safety onboard. Read more…

A major funding package for the Institute of Petroleum Engineering (IPE) will directly support research and training for the future of the industry in UK offshore waters. The award will support a number of oil and gas related training and Applied Geoscience research activities in IPE including the NERC Centre for Doctoral Training (CDT), the Ogilvie-Gordon 3D Audio-Visualisation Centre (OGAVC) and UK Continental Shelf (UKCS) and Frontier Basins PhD research activities. Read more…

Penspen, a leading global provider of engineering and project management services to the energy industry, has announced two new appointments at its CEE, which has been in operation since January. Tom Agbabi will join in the area of Field development and Peter Falconer will provide Asset Integrity expertise to the centre.

Leaders from oil and gas operating companies and the Oil and Gas Authority gathered at the Oil & Gas Technology Centre yesterday for a workshop to discuss priorities for the Decommissioning Solution Centre. One of five solution centres now up and running within the Oil & Gas Technology Centre, the Decommissioning Solution Centre will identify, co-fund and manage projects to accelerate technologies to drive down the costs of decommissioning. Read more… 

Parkmead, the UK and Netherlands focused independent oil and gas group, is delighted to announce that it has signed a Sale and Purchase Agreement with Verus Petroleum (SNS) Limited to acquire a 50% interest in UK North Sea Licence P.2209 which contains the Farne Extension prospect and a further four prospective leads. Read more…

Two engineers from Wood Group have supported the National Subsea Research Initiative (NSRI) in its drive to speed up the development and implementation of near to market technologies in the subsea sector.

Jamie McCallum and Christer Fjellroth, who are both working towards becoming Chartered Engineers, beat off competition from a number of hopefuls who applied to join NSRI on a one year secondment last year.

First oil has begun to flow from the Shaw field, part of the major redevelopment of the Montrose Area in the Central North Sea operated by Repsol Sinopec Resources UK. The Montrose Area Redevelopment (MAR) is a major capital project that significantly enhances the long term Montrose Area infrastructure. The project incorporates the development of three new fields – Godwin, Cayley and Shaw – and a new bridge-linked production platform (BLP) connected to the Montrose Alpha to provide additional process and plant support facilities. Read more… 

Marine gas oil supplier The Geos Group (Sea Bunkering) is pleased to announce that it has taken delivery of a new vessel, the Thun Grace, on long-term time charter from Thun Tankers. The Thun Grace is significantly larger than the Geos Group’s outgoing vessel, the Milford Fisher, which means that the company will now have extra capacity to grow its sales volume and provide a faster, more responsive service to its customers. Read more…

Azinor Catalyst Limited is pleased to announce it has awarded a rig contract to Diamond Offshore Drilling (UK) Limited for the Ocean Guardian semisubmersible rig to drill two operated wells in Q3 2017. The first exploration well will target the Partridge Prospect, which will be immediately followed by an appraisal well to test the Agar Discovery and Plantain Prospect. Read more… 

Costain is delighted to announce the appointment of Tim Martin as director of front end and advisory services within its oil and gas team. Tim joins Costain from Ramboll, where he was the managing director. As a leading proponent of industry improvement and transformation throughout his 20-year career within the sector, Tim has directed the delivery of multiple innovative solutions for client organisations and is a member of the Oil & Gas Authority’s Asset Stewardship Board. Read more…

Baker Hughes Incorporated announced the introduction of its DEEPFRAC™ deepwater multistage fracturing service, which can save operators hundreds of millions of dollars in offshore developments through unprecedented efficiency gains across the completion phase. Using multiposition sleeves and patented flowback control technology, the service accelerates or eliminates certain steps of conventional multizone completion operations and enables rapid stimulation of 20+ stages. This translates into significantly greater reservoir contact, with an average OPEX savings of USD 30 to 40 million per well. Read more…

Do you have a story to tell about working in oil and gas? What memories and experiences do you have that are captured on camera, and how does life offshore now compare to the early days of North Sea exploration and production?

‘Capturing the Energy’, in partnership with Aberdeen-based software development company Intellicore, is creating an interactive mobile app featuring stories from the archives, with images, audio and video brought to life using image recognition and augmented reality.

Project Development Officer Joe Chapman says: “It’s an exciting initiative that aims to showcase the remarkable progress and innovation seen in our industry over the past 50 years – and we want Oil & Gas UK members to help tell that story! If you have any good-quality photos, audio and video material of anything North Sea-related that you would be willing to share, or would like to have your recollections recorded for others to enjoy, we’d like to hear from you.”

The app is expected in time for SPE Offshore Europe on 5-8 September 2017. For more information, email [email protected] or phone 01224 272545.

Cyberhawk Innovations has once again proven its credentials thanks to analysis from a leading international E&P company, which shows UAV inspection is twenty times faster and half the cost of traditional inspection methods. The company has analysed inspection data from the last two years and concluded Cyberhawk’s UAV inspection technique proved 20 times more efficient than traditional inspection methods, such as rope access. This meant that for every day on site, Cyberhawk inspected 20 times more structures than rope access was able to achieve. Read more…

Efficiency, competitiveness and Vision 2035 key to future

The UK oil and gas industry must learn from efficiency changes made to adapt to the lower oil price as it looks towards a future that could be delivered by Vision 2035.

Deirdre Michie, the CEO of Oil & Gas UK will tell a key industry conference tomorrow (June 6) that its focus must remain on efficiency, if industry is to maintain the competitive benefits it has worked so hard to deliver.

The head of the industry trade body will also flag the positive future for the basin that could be delivered by Vision 2035 – which outlines the opportunity for the UK Continental Shelf and supply chain over the next two decades.

In her keynote address to the annual Oil & Gas UK conference taking place in Aberdeen, the CEO will say: “We are moving forward with ‘cautious optimism’ recognising that oil market fundamentals have changed almost beyond recognition in the last 10 years and that they are not going to change back any time soon.

“Bold steps have been, and are being taken and we have great examples of companies working differently to improve cost and efficiency and working hard to lock these benefits in for the long term.

“We have halved our average unit operating costs over the last two years from around $30 to $15 per barrel while safely increasing oil and gas production.

“Reflecting improvements in capital efficiency, the development costs of the projects that have been sanctioned averaged half of those approved in 2013 and are expected to fall further this year.

“The sustainability of these improvements is always under scrutiny. We know that some of them have been achieved by tough rate reduction; job losses; retendering and, quite frankly, by putting severe pressure on the whole supply chain.

“But we also know that up to two thirds of these improvements are about efficiency and better ways of working.

“The cynics say that we are a cyclical industry that never learns its lessons. Well this time we have an opportunity to do things differently – especially if we remind ourselves that we have been part of the problem and therefore we all need – including the cynics – to be part of the solution too.”

Ms Michie adds: “Vision 2035 conceived by the Oil and Gas Authority and shared by industry and other stakeholders, states that we can be a global energy industry, anchored in the UK, powering the nation and exporting to the world.

“This vision is underpinned by the aspiration to add an additional £290 billion to the UK economy over time.

“We can deliver this by extending the life time of the basin through halving the rate of production decline and doubling the supply chain turnover – through extra domestic activity and raising the bar in terms of exports.”
ENDS

Notes to Editors:
A copy of the speech is available and Deirdre Michie is available for interview. Contact Communications Manager Jennifer Phillips to arrange – 01224 577279 / [email protected]

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies.

Buchan oil production vessel to be decommissioned in Shetland

After 36 years and almost 150mm barrels of oil, the Buchan Alpha facility in the UK North Sea ceased production, as planned, on 12 May 2017. Buchan Alpha is a semi-submersible moored floating production vessel (originally a drilling rig). Decommissioning plans are well developed and ultimate dismantling and recycling of the vessel was competitively tendered. Repsol Sinopec Resources UK is pleased to announce the contract has been awarded to Veolia to be carried out at its Dales Voe site in Lerwick, Shetland. Read more…

Briggs Marine strengthens footprint in Liverpool

Briggs Marine, one of the UK’s leading marine contractors, is pleased to announce it is expanding in the north west of England with new water-side facilities in Port of Liverpool. The 500 sq metre building will allow Briggs to offer a greater range of services, and will assist the company in further developing its offering in renewables, sub-marine engineering and port services in this busy region. Read more…

Bibby Offshore awarded significant contract with TAQA

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has been awarded a significant contract with TAQA for subsea construction works in the Eider field, located 184 kilometres north-east of Shetland. With offshore operations to be completed this summer, the six month contract will see Bibby Offshore adopt a multi-vessel approach, utilising its subsea support and construction vessel Olympic Ares, and its diving support vessel, Bibby Polaris. Read more…

Restrata appoints new head of UK crisis management

Restrata, a global leader in safety and security consultancy and training services, has appointed Craig Menzies to head up its UK emergency response and crisis management business, which includes the state-of-the-art Incident Management Centre (IMC) in Aberdeen.  Read more…

BP announces the start of production from Quad204 project, west of Shetland

BP, on behalf of co-venturers Shell and Siccar Point Energy, is pleased to announce first oil from the redeveloped Schiehallion Area, following completion of the multi-billion-pound Quad 204 project in the west of Shetland region, offshore UK. UK project is the third of seven new upstream major projects expected to come on stream for BP in 2017. Read more…

ACE Winches supplies winch solution for the DolWin Topside Float-over

ACE Winches, a leading global supplier of specialised marine deck machinery, successfully mobilized and installed a winch package for use on the jacket installation and float-over of the DolWin Topside platform.

The DolWin platform is one of the world’s largest high voltage direct current (HVDC) converter platforms, generating enough power to provide approximately 1 million households with clean energy. Measuring 100m in length, 70m wide, standing 90m and weighing approximately 15000te, the platform is located in the German Bight of the North Sea. Read more…

ABB Marine showcases its digital offerings

ABB Marine & Ports hosted their first ‘hot topic’ customer event in Aberdeen on 16 May.  The event highlighted the value of using marine digital services in today’s challenging market. The solutions highlighted the role of connectivity in reducing costs and increasing efficiency and safety onboard. Read more…

Verus Petroleum awards £416k funding to Heriot-Watt’s Institute of Petroleum Engineering

A major funding package for the Institute of Petroleum Engineering (IPE) will directly support research and training for the future of the industry in UK offshore waters. The award will support a number of oil and gas related training and Applied Geoscience research activities in IPE including the NERC Centre for Doctoral Training (CDT), the Ogilvie-Gordon 3D Audio-Visualisation Centre (OGAVC) and UK Continental Shelf (UKCS) and Frontier Basins PhD research activities. Read more…

Two new appointments announced at Penspen’s Centre for Engineering Excellence (CEE)

Penspen, a leading global provider of engineering and project management services to the energy industry, has announced two new appointments at its CEE, which has been in operation since January. Tom Agbabi will join in the area of Field development and Peter Falconer will provide Asset Integrity expertise to the centre.

Leaders shape technology priorities for late-life asset management and decommissioning

Leaders from oil and gas operating companies and the Oil and Gas Authority gathered at the Oil & Gas Technology Centre yesterday for a workshop to discuss priorities for the Decommissioning Solution Centre. One of five solution centres now up and running within the Oil & Gas Technology Centre, the Decommissioning Solution Centre will identify, co-fund and manage projects to accelerate technologies to drive down the costs of decommissioning. Read more… 

Parkmead acquisition doubles its stake in key North Sea gas area

Parkmead, the UK and Netherlands focused independent oil and gas group, is delighted to announce that it has signed a Sale and Purchase Agreement with Verus Petroleum (SNS) Limited to acquire a 50% interest in UK North Sea Licence P.2209 which contains the Farne Extension prospect and a further four prospective leads. Read more…

Wood Group engineers support NSRI’s diversification initiative

Two engineers from Wood Group have supported the National Subsea Research Initiative (NSRI) in its drive to speed up the development and implementation of near to market technologies in the subsea sector.

Jamie McCallum and Christer Fjellroth, who are both working towards becoming Chartered Engineers, beat off competition from a number of hopefuls who applied to join NSRI on a one year secondment last year.

First oil confirmed from Montrose Area Redevelopment

First oil has begun to flow from the Shaw field, part of the major redevelopment of the Montrose Area in the Central North Sea operated by Repsol Sinopec Resources UK. The Montrose Area Redevelopment (MAR) is a major capital project that significantly enhances the long term Montrose Area infrastructure. The project incorporates the development of three new fields – Godwin, Cayley and Shaw – and a new bridge-linked production platform (BLP) connected to the Montrose Alpha to provide additional process and plant support facilities. Read more… 

Marine gas oil supplier increases the size of its vessel

Marine gas oil supplier The Geos Group (Sea Bunkering) is pleased to announce that it has taken delivery of a new vessel, the Thun Grace, on long-term time charter from Thun Tankers. The Thun Grace is significantly larger than the Geos Group’s outgoing vessel, the Milford Fisher, which means that the company will now have extra capacity to grow its sales volume and provide a faster, more responsive service to its customers. Read more…

Azinor Catalyst signs rig contract to drill two wells in Q3 2017

Azinor Catalyst Limited is pleased to announce it has awarded a rig contract to Diamond Offshore Drilling (UK) Limited for the Ocean Guardian semisubmersible rig to drill two operated wells in Q3 2017. The first exploration well will target the Partridge Prospect, which will be immediately followed by an appraisal well to test the Agar Discovery and Plantain Prospect. Read more… 

Costain Oil and Gas appoints director of front end and advisory

Costain is delighted to announce the appointment of Tim Martin as director of front end and advisory services within its oil and gas team. Tim joins Costain from Ramboll, where he was the managing director. As a leading proponent of industry improvement and transformation throughout his 20-year career within the sector, Tim has directed the delivery of multiple innovative solutions for client organisations and is a member of the Oil & Gas Authority’s Asset Stewardship Board. Read more…

Baker Hughes introduces multistage fracturing service for deep water

Baker Hughes Incorporated announced the introduction of its DEEPFRAC™ deepwater multistage fracturing service, which can save operators hundreds of millions of dollars in offshore developments through unprecedented efficiency gains across the completion phase. Using multiposition sleeves and patented flowback control technology, the service accelerates or eliminates certain steps of conventional multizone completion operations and enables rapid stimulation of 20+ stages. This translates into significantly greater reservoir contact, with an average OPEX savings of USD 30 to 40 million per well. Read more…

An innovative approach to capturing the history of the North Sea

Do you have a story to tell about working in oil and gas? What memories and experiences do you have that are captured on camera, and how does life offshore now compare to the early days of North Sea exploration and production?

‘Capturing the Energy’, in partnership with Aberdeen-based software development company Intellicore, is creating an interactive mobile app featuring stories from the archives, with images, audio and video brought to life using image recognition and augmented reality.

Project Development Officer Joe Chapman says: “It’s an exciting initiative that aims to showcase the remarkable progress and innovation seen in our industry over the past 50 years – and we want Oil & Gas UK members to help tell that story! If you have any good-quality photos, audio and video material of anything North Sea-related that you would be willing to share, or would like to have your recollections recorded for others to enjoy, we’d like to hear from you.”

The app is expected in time for SPE Offshore Europe on 5-8 September 2017. For more information, email [email protected] or phone 01224 272545.

Cyberhawk achieves 50% cost saving for large North Sea operator

Cyberhawk Innovations has once again proven its credentials thanks to analysis from a leading international E&P company, which shows UAV inspection is twenty times faster and half the cost of traditional inspection methods. The company has analysed inspection data from the last two years and concluded Cyberhawk’s UAV inspection technique proved 20 times more efficient than traditional inspection methods, such as rope access. This meant that for every day on site, Cyberhawk inspected 20 times more structures than rope access was able to achieve. Read more…

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