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Deirdre Michie, chief executive, Oil & Gas UK, supported today’s (February 10) launch of the Oil and Gas Technology Centre in Aberdeen, she said:
“As our industry focuses on maximising economic recovery from the UK Continental Shelf, technology must play a pivotal role in helping the sector improve its global competitiveness by tackling some key challenges that the industry continues to face.
“Oil & Gas UK very much welcomes the creation of the Oil & Gas Technology Centre and the opportunity to work with it in establishing a world class centre of innovation and expertise.”

Two leading figures in the UK oil and gas industry, Greta Lydecker from Chevron Upstream Europe and ConocoPhillip’s Terri King, have joined the board at Oil & Gas UK, the sector’s leading trade association, it was announced today (26 January).
Greta Lydecker, managing director, Chevron Upstream Europe, and Terri King, president, UK ConocoPhillips, will both represent operating companies on the Board. With over 30 years at Chevron, Greta has worked in a variety of senior management roles encompassing oil and gas operations, planning and finance, and environmental management.  Terri King joined ConocoPhillips in 1991 and has significant international industry experience in leading upstream project teams in both Norway and the US.
Greta Lydecker said: “Our industry is facing many challenges and our continued efforts to deliver safe, reliable and affordable energy for the UK will be ensured through improved efficiencies, application of technology, and collaboration.  I am honoured to be joining the Board of Oil & Gas UK. I look forward to working closely with industry colleagues and key stakeholders to help improve business performance, maximise the economic recovery from the basin and safeguard its future.”
Terri King said: “Oil & Gas UK is setting a vision for global competitiveness in this challenging industry environment and I am excited to join the board at such a critical time. I was last in the North Sea in the 2005-2008 timeframe, working in the Norwegian Sector. Today, the basin maturity and commodity price environment brings additional challenges. Oil & Gas UK will play a vital role in ensuring proactive new approaches provide a path for continued energy production and investment. I look forward to being part of the team as they seek to deliver tangible results.”

Deirdre Michie, Oil & Gas UK’s chief executive, said: “I am delighted to welcome Greta and Terri to Oil & Gas UK’s board. Our industry recognises that tough times are continuing but the signs are that we are making progress in tackling our challenges and becoming more globally competitive. I believe we have a talented experienced Board on whose experience and guidance we can draw to enable this industry to deliver a safe, more sustainable and efficient industry for the future.”

The full list of board members is available here and on the Oil & Gas UK website

 

 

Two leading figures in the UK oil and gas industry, Greta Lydecker from Chevron Upstream Europe and ConocoPhillip’s Terri King, have joined the board at Oil & Gas UK, the sector’s leading trade association, it was announced today (26 January).
Greta Lydecker, managing director, Chevron Upstream Europe, and Terri King, president, UK ConocoPhillips, will both represent operating companies on the Board. With over 30 years at Chevron, Greta has worked in a variety of senior management roles encompassing oil and gas operations, planning and finance, and environmental management.  Terri King joined ConocoPhillips in 1991 and has significant international industry experience in leading upstream project teams in both Norway and the US.
Greta Lydecker said: “Our industry is facing many challenges and our continued efforts to deliver safe, reliable and affordable energy for the UK will be ensured through improved efficiencies, application of technology, and collaboration.  I am honoured to be joining the Board of Oil & Gas UK. I look forward to working closely with industry colleagues and key stakeholders to help improve business performance, maximise the economic recovery from the basin and safeguard its future.”
Terri King said: “Oil & Gas UK is setting a vision for global competitiveness in this challenging industry environment and I am excited to join the board at such a critical time. I was last in the North Sea in the 2005-2008 timeframe, working in the Norwegian Sector. Today, the basin maturity and commodity price environment brings additional challenges. Oil & Gas UK will play a vital role in ensuring proactive new approaches provide a path for continued energy production and investment. I look forward to being part of the team as they seek to deliver tangible results.”

Deirdre Michie, Oil & Gas UK’s chief executive, said: “I am delighted to welcome Greta and Terri to Oil & Gas UK’s board. Our industry recognises that tough times are continuing but the signs are that we are making progress in tackling our challenges and becoming more globally competitive. I believe we have a talented experienced Board on whose experience and guidance we can draw to enable this industry to deliver a safe, more sustainable and efficient industry for the future.”

Commenting on the sale of part of BP’s interests in the Magnus oil field and Sullom Voe Terminal to EnQuest, Oil & Gas UK Chief Executive Deirdre Michie said:

“This is an innovative deal which will open a new chapter in the life of Sullom Voe and the productive life of Magnus, an iconic North Sea oil field. It also sends a very positive signal on the opportunities available in the North Sea and is an indication of confidence that, even after producing oil for more than thirty years, this mature field still has more to give.

“The transfer of assets and infrastructure builds on a long-term trend to see ‘the right mature assets’ move into the right hands of established UK mature field operators and sees a fresh commitment to exciting development opportunities by established incumbent companies.”

Discharges to sea and emissions to the air by the UK’s oil and gas industry have been on an overall downward trend over the last 15 years, according to a key report published today (November 29) by the sector’s trade body.

The trend echoes the decline of UK oil and gas production together with effective process management and industry’s use of best available techniques, says Oil & Gas UK’s Environment Report 2016.

The report – containing data reported to industry’s regulators – captures the sector’s environmental performance to the end of 2015.

Last year industry had its first increase in production in 15 years, and the extraction of more oil and gas resulted in a slight rise in 2015 in the mass of production chemicals discharged and produced water[1]  volumes, as well as in emissions of carbon dioxide, nitrogen oxides, carbon monoxide and sulphur dioxide.

However, the proportion of the rise was not as great as the production upturn itself, demonstrating industry’s commitment to environmental management, as well as its efforts to minimise emissions.

The average oil in water concentration in produced water last year was less than half of the recommended limit set by the OSPAR Commission.

Industry takes every step to prevent accidental and chemical releases and last year saw the smallest mass on record of accidental oil released to the marine environment. With 82 million tonnes of oil equivalent produced in 2015, accidental oil releases represented less than 0.00002% of total oil production.

While there was a slight rise in the mass of chemicals released last year, almost half was the result of three incidents. The overall mass of chemicals accidentally released between 2010 and 2015 is down 65 per cent.

Carbon dioxide emissions from offshore oil and gas production contributed just over 3 per cent of the UK’s total CO2 emissions in 2015 – the same level as the previous year.

The report does show a continuation of a rise in waste materials being returned to shore from offshore. However, part of last year’s rise was due to the downturn, as much of the waste came from sludges, liquids and tank washings from mobile drilling rigs being taken off hire.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “The Environment Report comes at a challenging time for the UK oil and gas which is working extremely hard to navigate through the downturn, while maintaining environment and safety standards.

“Despite the UK Continental Shelf being a mature basin with technically challenging production, the overall trend for the last 15 years is downwards for discharges, emissions and accidental releases. Put simply, we are using the same amount of chemicals and emitting less CO2 in the production of more oil and gas.

“Industry is committed to minimising the effect on the natural environment and all operators have an environmental management system which is designed to minimise environmental effect.”

The full report is available at www.oilandgasuk.co.uk/environmentreport

An infographic illustrating the report is also available .

ENDS

Notes to Editors:

Mick Borwell, Oil & Gas UK’s Health, Safety and Environment Director, is available for interview. He is attending the trade body’s annual environment seminar taking place at Aberdeen Exhibition and Conference Centre today. To arrange, call or text Communications Adviser Jennifer Phillips, also at the AECC, on 07961 076645 or email [email protected].

[1] Produced water is water brought to the surface with hydrocarbons during production.

Trade body Oil & Gas UK has written to the Chancellor asking him to use his Autumn Statement later this month to help boost investor confidence in North Sea exploration and production.

The North Sea oil and gas industry currently faces fierce global competition to attract investment, with the combined challenges of a low oil price, a maturing industry and uncertainty for the sector. Oil & Gas UK’s recently published Economic Report 2016 found that investment in the UK continental shelf has fallen to around £9 billion this year, from a record £14.8 billion in 2014, illustrating the difficulty for investors in accessing finance for asset development.

Deirdre Michie, chief executive, Oil & Gas UK said:

“Sentiment and stability are important, and the Chancellor has a real opportunity to use the Autumn Statement to send a clear message to investors that the UK Continental Shelf is a great place to do business.

“Exploration and development drilling has fallen to record lows and industry figures reveal a drought of new investment approved in 2016 and 2017 looks no better.

“I have asked Mr Hammond to get behind the UK’s oil and gas industry by providing certainty in our fiscal regime, recommitting to the Treasury’s ‘Driving Investment’ strategy for the sector and, as part of the UK’s new industrial strategy, recognising our supply chain as a key strength in the economy, with world leading capability – equally valuable as aerospace or the automotive sectors, for example.

“The UK oil and gas industry is much more globally competitive than it was two years ago. The cost of doing business in the North Sea has come down significantly and production has increased for the first time in 15 years thanks to the industry’s efforts to make its operations more efficient.

“We urgently need to see new entrants encouraged into the market and increased asset trading is one area that could boost activity in the North Sea by facilitating the trading of late-life assets.

“But investors are also looking for certainty and we can’t underestimate the importance of government sending a strong signal of confidence and support.”

Today Oil & Gas UK is asking the UK Government for four commitments as part of the upcoming Autumn Statement:

  • The UK Government to re-affirm their continued commitment to the ‘Driving Investment’ fiscal strategy which recognises the need for a more competitive, simple and predictable fiscal regime as the basin continues to mature;
  • Promote the increasing competitiveness of the basin as well as the capability of the UK’s oil and gas supply chain, both nationally and internationally, as part of the UK’s new industrial strategy, recognising our sector as a key element of the economy;
  • Complete the constructive work on decommissioning tax relief over recent budgets by introducing measures to enable tax relief to be transferred upon an asset sale. This would unlock the trading of assets by encouraging new entrants to the market and freeing up new investment;
  • Introduce new measures to extend the Investment Allowance for operating expenditure that is aimed at increasing production from an asset or keeping it producing for longer. This could include investment in Enhanced Oil Recovery techniques.

 

Less than £100 million of fresh capital has been committed to the basin this year, with only one new field approved – this compares with five greenfield projects sanctioned last year with associated development capital at more than £4.3 billion.

These figures from the Economic Report 2016 demonstrate that urgent action is required if industry is to maximise the economic recovery of the up to 20 billion barrels of oil and gas equivalent still available in the North Sea.

 

-ENDS-

For further information, please contact Lucy Gordon on 01224 577331 [email protected] or Jennifer Phillips on 01224 577279 [email protected]
Notes to Editors

  1. Oil & Gas UK published its flagship annual Economic Report 2016 on 27 September and can be read in full here. An infographic summarising the key findings of the report can be found here.
  2. The UK Government’s fiscal strategy ‘Driving Investment’ was first published in 2014.
  3. 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.

The winners of the Oil & Gas UK Awards 2016, sponsored by Shell U.K. Limited, were announced last night in Aberdeen. Winners were presented with their awards at an evening ceremony on Thursday 3rd November, where over 450 people from across the oil and gas industry gathered to celebrate their company and individual achievements.

Oil & Gas UK’s chief executive, Deirdre Michie, commented:

“We all know that our industry continues to face challenging times and that tough decisions have had to be made. This is why it is more important than ever that we come together and take time to celebrate the great people and achievements that have made this industry a national treasure that we are all very proud of.

“In this our tenth year of the Oil & Gas UK Awards we received an unprecedented number of nominations and the finalists are testament to the exceptional work being delivered by remarkable people across our industry.

“It is through the tenacity and determination of our industry’s workforce that over the last five decades we have pushed the boundaries of technology to meet the engineering challenges of operating in one of the most hostile basins in the world. Our 2016 Awards highlight and share the examples of success in the last year, inspiring our drive for improvement in the future.

“Whilst we look back with pride on our achievements over the past year, we also look forward, confident in the knowledge that with up to 20 billion of barrels of oil and gas still to get after, we can and will deliver a sustainable and competitive industry for the future.”

The event was hosted by the BBC’s Scotland Editor Sarah Smith: Sarah reports on every element of Scotland from its politics to its economic performance. She has also worked for Channel 4 News where her reporting on the Madrid train bombings won an International Emmy.

The evening also included a speech from Ben Taylor, Country Commercial Lead at Shell U.K. Limited, who reflected on an ever-adapting industry as it responds to oil price fluctuations, a maturing basin and most recently the decision to leave the EU.

Deirdre Michie added:

“I am pleased to say we have two new awards for 2016, the Diversity and Inclusiveness Award that recognises the contribution diverse teams and inclusive behaviours can deliver to our industry, and of course, to the bottom line of a business. We also wanted to mark our 10th anniversary of awards in a special way and I am delighted that this year we have acknowledged Jeremy Cresswell, energy editor of the Press and Journal for the contribution he has made to the oil and gas industry with the Significant Achievement Award.”

The winners across the eight categories were:

Apprentice of the Year – Louise Jamieson, Total E&P UK

Graduate of the Year – Sarah-Alice Davies, Shell U.K. Limited

Mentor of the Year – Girish Rajkumar Kabra, Centrica

Workforce Engagement (SME) – Merlin Energy Resources Ltd

Workforce Engagement (Large Enterprise) – Nexen Petroleum UK Limited

Business Innovation and Efficiency (SME) – Cyberhawk Innovations

Business Innovation and Efficiency (Large Enterprise) – Centrica

Diversity and Inclusiveness- Amec Foster Wheeler

MER UK Awards – ETAP Partners: BP, Shell, Esso, JX Nippon, Zennor and Southern Wye Project Partners: ConocoPhilips, Repsol Sinopec, Maersk and Ithaca

Significant Achievement Award – Jeremy Cresswell, Energy Editor, Press and Journal

The Oil & Gas UK Award for Apprentice of the Year, sponsored by OPITO, and the Oil & Gas UK Award for Graduate of the Year recognise the next generation of talent in the offshore oil and gas industry.

Apprentice of the Year, Louise Jamieson, Apprentice Production Operator, Total E&P UK Ltd, is a role model to those around her, demonstrating a level of commitment and competency in a physically demanding role far surpassing expectations. Arriving at the Shetland Gas Plant during its construction phase she became a leader in delivering technical training for other apprentices and operators. This saved time and money by creating and delivering training in-house.

Sarah-Alice Davies, CWI Engineer – Design, Shell U.K. Limited, won Graduate of the Year 2016. The judges heard how she is one of the first graduates to attain two international postings at difficult, remote locations. Sarah’s competence has given her the opportunity to deliver the first shale oil to the Middle East from Jordan’s deserts and supervise rig and interventions operations in the jungles of Gabon.

The Oil & Gas UK Award for Mentor of the Year went to Girish Rajkumar Kabra, Developments Manager, Centrica. Girish understands the importance of good mentoring and its ability to transform careers, and his commitment as a mentor has helped his mentees develop to their full potential. Many are already working at senior positions on medium to major projects at young ages.

The Oil & Gas UK Award for Workforce Engagement recognises the outstanding steps taken by companies to involve their people, give them a voice in the organisation and develop an empowering culture.

SME winner Merlin Energy Resources Ltd impressed judges with its climate of openness and transparency throughout the business. This inclusive approach has paid dividends as engaged staff can devote more energy focussing on customers and their needs.

The Large Enterprise Award for Workforce Engagement was sponsored by ECITB. This award was won by Nexen Petroleum UK Ltdwho have taken inspiration from the cycling world and the philosophy behind ‘Marginal Gains Theory,’ to encourage the workforce to drive improvements and better working practices in everyday tasks. The company was inundated with over 130 ideas for demonstrating the successful take-up of this cultural change campaign by the workforce.

The Oil & Gas UK Award for Business Innovation and Efficiency champions those enterprises delivering improved performance through innovation and efficiency initiatives.

As SME winner, Cyberhawk Innovations impressed the judges with its revolutionary step in bringing Unmanned Aerial Vehicles (UAVs) to the oil and gas sector. Last year, Cyberhawk carried out the world’s first inspection of an internal storage tank on board a Maersk FPSO in the UKCS, reducing the safety risk of industrial inspections, and minimising production downtime by avoiding shutdowns.

Centrica took the Large Enterprise Award by supporting an onshore trial of a radical new technology for well abandonment. Interwell’s thermite plug seals off the well by melting both the well components and the rock formation around them to recreate the cap rock. The trial results demonstrated that this technology could reduce abandonment costs in the North Sea by more than 50 per cent.

The MER UK Awards – sponsored by the Oil and Gas Authority (OGA), award those companies whose cooperative approach and positive behaviours have helped to maximise the economic recovery of oil and gas from the UKCS.

The winners on the evening were: ETAP Partners: BP, Shell, Esso, JX Nippon and Zennor for realigning the ownership interests, associated decision making process and cost sharing to best reflect the remaining value of the fields. This unique approach supported investment and value recovery activities, demonstrating that a sustainable framework can be delivered in even the most challenging circumstances. The Southern Wye Project Partners: ConocoPhilips, Repsol, Maersk and Ithaca also received an MER UK Award. Success of this greatly accelerated project, a fast-track and complex subsea tie-in, stemmed from all parties working together to overcome commercial, legal and logistical challenges. The behaviours during the project embody MER UK and demonstrated that overall value can be increased through collaboration.

The Significant Achievement Award marks our 10th anniversary of the Oil & Gas UK Awards in a special way, acknowledging the significant contribution to the oil and gas industry of Jeremy Cresswell, Energy Editor, Press and Journal, who has worked tirelessly over the years to champion our industry.

 

– Ends –

 

Note to Editors

 

For further information, please contact Lucy Gordon on 01224 577331 or [email protected] or Jennifer Phillips on 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.

 

Oil & Gas UK’s Share Fair, which aims to shine a brighter light on the business opportunities available on the UK Continental Shelf, attracted almost 700 people to Aberdeen’s Exhibition and Conference Centre from across the industry’s world class supply chain including operators, contractors and SMEs yesterday ( November 3).

In welcoming delegates to the event, Oil & Gas UK’s chief executive, Deirdre Michie, recognised how severely the supply chain has been  impacted by the current downturn but added: “Industry is moving in the right direction and becoming more competitive thanks to the efforts of companies across the whole sector.”

Dominic Macklon, President UK for ConocoPhillips, said: “We know this has been a really tough downturn but governments have listened and brought in a competitive and stable tax regime in accordance with their “Driving Investment” roadmap and this wouldn’t have happened without operators and the supply chain working together to reduce costs.”

As Co Chair for Contractors on Oil & Gas UK’s board, Terry Savage, Corporate Relationship Director, Global Energy Group, said: “Ultimately we need to all play our part in creating a new, collaborative and cost challenging environment, that helps to stimulate the activity which the supply chain desperately needs. Not easy to do, but nevertheless vital for success.  The Efficiency Task Force is a key driver in promoting a culture of trust where operators and suppliers apply shared knowledge and expertise to unlock projects that are uneconomic in the current climate.”

Members of the Efficiency Task Force demonstrated its new interactive toolkit steering delegates to resources including guidelines to help optimise maintenance and the Tender Efficiency Framework aimed at providing guiding principles to help eliminate duplication and reduce wastage in procurement processes.

The toolkit includes information to help companies rationalise inventories to reduce storage and maintenance costs plus interactive mechanisms like the Rapid Efficiency Exchange which showcases how companies are working smarter, innovatively and co-operatively to tackle the sector’s most pressing challenges.

Among the most progressive of the Efficiency Task Force projects, is the Subsea Standardisation Group’s work to drive greater simplification in the execution of subsea development projects. In Share Fair’s new Innovation Hub, delegates heard about the progress achieved by the work group which has led more than 70 people from 30 companies to pool their expertise to deliver a framework that, if adopted widely by the industry, could potentially deliver savings off up to 30 per cent.

The Innovation Hub also provided an arena for suppliers and operators to engage in intensive discussion and knowledge exchange as part of the interactive ‘sandpit’ sessions co-ordinated by the Oil and Gas Technology Centre, and designed to generate innovative solutions in the areas of corrosion under insulation and vessel inspection.

Share Fair’s classic attractions such as the forward plan presentations delivered by major purchaser companies drew high levels of interest as did the one-to-one business discussions both of which helped to pinpoint the range of business opportunities available on the UK Continental Shelf over the next 18 months. Delegates heard presentations from Aker Solutions Ltd, Amec Foster Wheeler, BP, Chevron North Sea Ltd, Nexen Petroleum Ltd, and Total E&P Ltd while around 950 one to one sessions were conducted by 19 major purchaser companies.

Stephen Marcos Jones, Business Excellence Director with Oil & Gas UK, added: “Everyone is aware of the difficult times our industry is experiencing, however Share Fair plays a key role in making the opportunities more visible.   There has been a real buzz at our event with great dialogue between operators and suppliers. It is exactly these kind of exchanges that will unlock efficiency, build business and help deliver a sustainable future for the North Sea where many billion barrels of oil and gas remain to be recovered.”

ENDS

 

For further information, please contact Lucy Gordon on 01224 577331 or [email protected]

 

  1. 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.
  2. The link to the Efficiency Task Force toolkit is at http://oilandgasuk.co.uk/etf-toolkit.cfm
  3. Access to all presentations delivered at Share are available here http://oilandgasuksharefair.co.uk/presentations/

 

In line with its commitment to continually reviewing and improving the safety and performance of all aspects of well practices on the UK Continental Shelf (UKCS), Oil & Gas UK is today (October 28) releasing new guidelines on wells with high pressure high temperature (HPHT) properties.

Mike Tholen, upstream policy director, at Oil & Gas UK, said: “Even in a mature basin, the High Temperature High Pressure (HPHT) resource base remains an exciting opportunity. The Guidelines for HPHT well design, operation and maintenance published today have been developed by Oil & Gas UK’s Wells Forum to share industry knowledge and best practice for the benefit of both well operators and drilling contractors alike.

“Building on Oil & Gas UK’s Well Integrity Guidelines published earlier this year, this publication provides additional information in areas including project planning, well design, HPHT cementing and well construction operations, well testing and abandonment. These guidelines will add to the industry’s shared knowledge as we seek to exploit the potential of the UKCS to the full in pursuit of Maximising Economic Recovery.”

As part of the industry’s efforts to tackle its cost base and improve efficiency, Oil & Gas UK’s Guidelines on High Pressure High Temperature Wells provide the sector with a common framework to outline good practice, reduce operational complexity and improve safety performance.

Ends

Notes to Editors

For further information, please contact Lucy Gordon on 01224 577331 or [email protected]

1. 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.

2. The publication released today comprises: Guidelines on High Pressure High Temperature Wells (Issue 1). The guidelines are available to Oil & Gas UK members to download for free via the Oil & Gas UK website or to non- members for a small charge here

3. In this document high pressure is defined as either the pore pressure of any porous formation to be drilled exceeds 0.8 psi/ft or which requires deployment of pressure control equipment with a rated working pressure in excess of 690 bar (10,000 psi).

4. High temperature is defined in these guidelines as when the undisturbed bottom hole temperature is greater than 149 degrees C (300 F).

5. The guidelines help companies (e.g. well-operators and drilling contractors) better understand and comply more effectively with the relevant legislation; mainly the Offshore Installations and Wells (Design and Construction etc) Regulations 1996 and the Offshore Installations (Safety Case) Regulations 2015.

6. The Wells Forum is an Oil & Gas UK forum comprising representatives from over 45 well-operators; it interfaces with other key industry stakeholders such as the drilling contractor and well services contractor communities.

7. The Wells Forum is responsible for reviewing the following documents as part of a rolling programme:
• BOP Issues
• Competency, Behaviours, Human and Organisational Factors
• Well Integrity
• Well Suspension and Abandonment
• Well Capping
• Relief Well Planning Requirements
• Verification
• Well Examination
• High Pressure High Temperature (HPHT)
• Process Safety Key Performance Indicators (KPI)

All duty holders shall comply with their duties under all relevant regulations. These guidelines will help but are not a substitute for a full understanding of the regulations.

New guidelines for managing risk in the UK offshore oil and gas industry have been published by Oil & Gas UK.

Safety experts from across the industry worked to develop the Cumulative Risk Guidelines, which aim to increase awareness of cumulative risk and provide guidance on how to manage it.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “The UK upstream oil and gas industry operates within a goal-setting regulatory framework which sets out the guiding principles for how it manages major accident hazards.

“But there are sometimes small changes which occur outside of standard day-to-day hazard management, and it’s these which the new publication seeks to address.

“Minor deviations in hazard management can occur and have a small associated risk when examined on their own, however, when these are considered cumulatively there is potential for a significant change in overall risk.”

Technical specialists from a number of Oil & Gas UK’s member companies helped shape the document that includes chapters on assessing cumulative risk, suggestions for approaches and methods, and step-by-step examples of how to ensure risk remains as low as reasonably practical.

“Our guidelines will give offshore installation managers, operations manager and asset managers the means to make more informed decisions when events deviate from normal risk management processes.”

The guidelines available to Oil & Gas UK members and associates free, and at £50.00 for non-members, can be downloaded here.
ENDS

Issued by the Oil & Gas UK Communications Team. Contact Communications Adviser Lucy Gordon on [email protected] / 01224 577331.

Notes to Editors

  • 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.

Bookings are now open for one-to-one appointments between supply chain firms and the operator and major contractor companies at Oil & Gas UK’s 2016 Share Fair. These one-to-ones will promote engagement and help illuminate the sector’s business opportunities at this event in Aberdeen’s Exhibition and Conference Centre on November 2.

Ken Cruickshank, Oil & Gas UK’s supply chain manager, said: “Bookings for the one-to-one business discussions are always snapped up fast because participants know they are a highly effective way to gain invaluable access to key decision makers including client contract and purchasing teams. In turn, operators and major contractors use these conversations to identify innovative value-adding technologies and enterprising new entrants to the supply chain sector.

“In today’s tough economic climate, Oil & Gas UK’s Share Fair plays a key role in bringing the market together to provide greater insight into the business opportunities that the sector still has on offer.  There will be presentations of forward work plans, as well as the one-to-one meetings, throughout the day delivered by operators and major contractors. These will include Aker Solutions; Amec Foster Wheeler; Apache North Sea; BP Exploration Operating Company Limited; Chevron North Sea Limited; ConocoPhillips; First Point Assessment FPAL; Halliburton; Nexen Petroleum UK Ltd; Petrofac; Premier Oil; Repsol Sinopec Resources UK Limited; Shell U.K. Ltd; Technip UK Limited; TOTAL E&P UK LIMITED; and Wood Group.

Oil & Gas UK’s Efficiency Task Force will be at the Share Fair demonstrating how it is helping the industry to lower costs and improve efficiency through collaboration, uptake of new technologies and streamlining of processes to restore competitiveness to the sector. Delegates will hear how the Efficiency Task Force has evolved new tools and guidance from current projects and also how they can get involved in working together with clients to share knowledge and expertise to unlock efficiency.”

Ends

For more information about participating in the Share Fair, Oil & Gas UK has developed a dedicated microsite which is available via its website here.

http://oilandgasuksharefair.co.uk/

 

Notes to Editors

Media wishing to attend the Share Fair should contact Oil & Gas UK Communications Adviser Lucy Gordon on 01224 577331 / [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.
  • As part of the work done by Oil & Gas UK’s Efficiency Task Force (ETF) we have pulled together a suite of pan-industry tools to support collaboration. These can be found on the ‘Efficiency’ pages of our website.

Mick Borwell, Oil & Gas UK’s HSE policy director, said:

“While we welcome the news that the EASA has published its report into the Norwegian helicopter accident in April 2016, and will be studying it in detail, we should also await the findings of the CAA investigation which will be published in due course.

Inevitably, concerns remain regarding helicopter safety and we’ll need to work together with the Civil Aviation Authority, Government, trade unions, oil and gas companies, helicopter operators and the workforce to ensure that the conclusions of both these investigations are fully understood by everyone involved and that appropriate action is taken in response to any recommendations.”

The report is available at this link https://www.easa.europa.eu/newsroom-and-events .

Oil & Gas UK, the leading trade association for the UK offshore oil and gas sector, has announced today (October 4) that it has appointed four new members to its board.

Cory L. Loegering, region vice president and managing director for Apache North Sea; Robin Allan, Premier Oil’s director, North Sea and Exploration; and Bill Dunnett, managing director of Repsol Sinopec Resources UK have joined the board as representatives of the operator community. Peter Wilson, vice president, operations, Rowan Companies, has been appointed to contribute to the representation of contractors and supply chain companies on the board.

With almost 40 years of oil and gas experience including exploration and production activities in the Gulf of Mexico, Mr Loegering, said:

“Oil & Gas UK plays a prominent role in representing the oil and gas community in the UK.  Our industry faces many difficult challenges in a low commodity price environment.  With a focus on efficiency and collaboration across all aspects of our business, we hope to operate more efficiently while stimulating activity and reinvigorating the UK oil and gas sector.”

Robin Allan, who has built up decades of international geological and business development expertise, said:

“The lower oil price has delivered a wake-up call to our industry, confirming our need to work collaboratively to ensure the UK maintains its position as a global centre of excellence for the oil and gas industry. To continue exploration and development of our nation’s oil and gas, we need our Government to provide tangible incentives to help British companies.   The Oil & Gas UK board has a vital and pro-active role to play in both these aspects.”

With significant expertise in the operation of mature assets on the UK Continental Shelf, Bill Dunnett said:

“The industry has experienced unprecedented challenges recently and responded well.  We need to share best practices and ensure we remain the world leader in HSE excellence, while continuing to improve overall effectiveness across all sectors. The case for long-term investment in our industry remains strong and the board will play a key part in promoting its significant potential.”

Bringing extensive knowledge of well operations in the UK, US, Brazil and Europe to his role, Peter Wilson said:

“During these challenging times, it is essential that we work together to ensure the sustainability of the North Sea as a viable hydrocarbon producing basin. The board provides the ideal arena for us to collectively help steer the industry towards improved collaboration, stimulate increased well activity and build a brighter long-term future for the oil & gas business in the UK.”

Deirdre Michie, Oil & Gas UK’s chief executive, said: “Many challenges remain for this industry but our latest Economic Report demonstrates that the collective actions we have taken so far are having a positive impact on improving the performance of the sector. The guidance of Oil & Gas UK’s board is key to this process. As I warmly welcome the new members, I would also like to thank those colleagues who have left the board for their commitment and service to the industry whose contribution has helped us make progress in restoring competitiveness to the sector”.

Ends

Notes to Editors

For more information, please contact Lucy Gordon at [email protected] or 01224 577331.

  • 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.
  • The full list of board members is available here .
  • As part of the work done by Oil & Gas UK’s Efficiency Task Force (ETF) we have pulled together a suite of pan-industry tools to support collaboration. These can be found on the ‘Efficiency’ pages of our website.
  • Industry efficiencies are driving a 45% drop in the cost of extracting a barrel of oil or gas from the UKCS
  • Production up by 10.4% in 2015, the first increase in 15 years
  • Major challenges remain, with record low exploration and a lack of capital investment

 

Oil & Gas UK’s Economic Report 2016 published today (27 September 2016) demonstrates the tenacity of the UK offshore oil and gas industry despite difficult market conditions.

 

Few industries could have achieved the performance improvements the UK’s oil and gas industry has demonstrated over the last 18 months. Its determination has seen the cost of extracting a barrel of oil or gas from the UK Continental Shelf (UKCS) cut to nearly half its cost since 2014 and a 10 per cent increase in production.

 

Despite this good news, major challenges remain. The supply chain has seen an average 30 per cent fall in revenues since 2014 and ongoing job losses – some 120,000 are expected to have been lost over the past two years – are the personal cost to individuals and families across the UK.

 

Deirdre Michie, Oil & Gas UK’s chief executive, said: “The UKCS is in urgent need of fresh investment to boost exploration and drive activity, particularly for the supply chain.

 

“Exploration has fallen to record lows and little new investment has been approved in 2016 and 2017 looks no better.  Increased asset trading is one area that could free up new investment by facilitating the trading of late-life assets.

 

“In light of this I am calling on governments today to vigorously champion the UK’s oil and gas industry, by providing certainty in our fiscal regime, encouraging new entrants to the market and recognising our supply chain as vitally important to the economy.

 

“The evidence in the report demonstrates what our industry can achieve when the basin’s competitiveness is addressed and the tax regime reformed. Now it is time for the UK and Scottish Governments to reinforce their efforts to promote the UKCS, nationally and internationally, as an attractive investment with world leading capability from front end exploration to late life operations.”

 

Industry will continue to build on the achievements to date of cost reduction and efficiency improvement and will require the  efforts of governments, HM Treasury, the Oil and Gas Authority and the Department of Business Energy and Industrial Strategy to continue. Today, Oil & Gas UK is making three asks:

  • The UK Government to re-affirm their continued commitment to the ‘Driving Investment’ fiscal strategy which recognises the need for a more competitive, simple and predictable fiscal regime as the basin continues to mature;
  • HM Treasury to complete the constructive work on decommissioning tax relief over recent budgets by introducing measures to enable tax relief to be transferred upon an asset sale to facilitate the trading of assets, encouraging new entrants to the market and liberating new investment for buyers and sellers alike;
  • The UK and Scottish Governments to promote the increasing competitiveness of the basin as well as the capability of the UK’s oil and gas supply chain, both nationally and internationally, as part of the UK’s new industrial strategy, recognising our sector as a key element of the economy.

-Ends-

For further information, please contact Lucy Coleman on 01224 577 343 or [email protected] or Jennifer Phillips at [email protected]01224 577279 or Lucy Gordon at [email protected] or 01224 577331.

 

Notes to Editors

  1. The report can be found here .
  2. An infographic outlining the key facts of the report can also be found attached.
  3. 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.
  4. The UK Government’s fiscal strategy ‘Driving Investment’ was first published in 2014.
  5. As part of the work done by Oil & Gas UK’s Efficiency Task Force (ETF) we have pulled together a suite of pan-industry tools to support collaboration. These can be found on the ‘Efficiency’ pages of our website.

A new publication launched by Oil & Gas UK today (11 August), “Maintenance Optimisation Reviews: Sharing Experience and Learning” will contribute to industry efforts to promote improvements in major accident hazard management and operational efficiency on offshore oil and gas installations.

Mick Borwell, Oil & Gas UK’s HSE Policy Director said: “The industry’s focus on ensuring the continued safety of offshore operations means equipment maintenance must be carried out to the highest standards. Maintenance regimes are subject to regular review to ensure they remain fit-for-purpose and enable operators to continue safely operating equipment and achieve their business objectives. By capturing the experience of specialists in maintenance and asset integrity, we believe this document will improve awareness of how the industry can optimise maintenance reviews to deliver safe, reliable and sustainable operations and contribute to tackling the backlog in safety critical maintenance.”

Technical specialists from a number of Oil & Gas UK’s member companies, who have been successful in delivering improvements and reducing backlog, have been involved in developing the document. The document provides examples of good practice in how to implement structured reviews of safety and business critical equipment maintenance as well as, two practical case studies.

Mr Borwell added: “We appreciate the opportunity to share with the wider industry the expertise of those companies who contributed to this document, which we believe will support robust and effective maintenance optimisation reviews. Promoting improvements in maintenance remains a key focus for the industry in its efforts to maximise economic recovery from the UKCS. The intention is to monitor uptake of the document and the ongoing effectiveness of efforts in this area, using key performance indicators to track progress in reducing the maintenance backlog.”

ENDS

 

Notes to Editors:

Mick Borwell, health, safety and environment policy director with Oil & Gas UK, is available for interview.  To arrange, contact Communications Adviser Lucy Gordon on 01224 577331 or [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.

The publication is available to Oil & Gas UK members to download for free via the Oil & Gas UK website or to non- members for a small charge here.

A new look event will next week (Wednesday, August 17) celebrate the individuals and companies coming up with new ideas and ways for making the UK oil and gas industry as safe as it can be.

The Offshore Safety Awards – organised by Oil & Gas UK and Step Change in Safety with Maersk Oil as principal sponsor – takes place at the Aberdeen Exhibition and Conference Centre between 8am and 1.30pm and is the successor to the UK Oil and Gas Industry Safety Awards, also organised by both organisations.

Nominees in six different categories have been whittled down to 18 finalists and each will take their turn at different stands explaining to those attending what they or their company has done to earn their finalists’ place. Their efforts will also be explained via video selfies.

Event attendees will then vote for who they want to win each category via electronic polling.

Mick Borwell, Director of Health, Safety and Environment Policy, said: “We have taken a fresh approach with the Offshore Safety Awards – one that is very much in keeping with the sharing and learning culture in industry.  We hope those attending will leave feeling inspired from some of the great initiatives being showcased at our event to further improve safety in our sector.”

Les Linklater, Executive Director of Step Change in Safety, added: “Award-winning can be a bit clichéd but it means a lot to all the finalists and the ultimate winners.  This year the finalists will share first hand their work with industry leaders and their peers, they can point to the nomination and the reasons it impacts safety positively. It’s such an authentic way for industry to say “well done – we rate the work you do”.

ENDS

 

Notes to Editors:

Media can attend the event – please confirm your attendance with Jennifer Phillips [email protected] or Lucy Gordon [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.

Deirdre Michie, Oil & Gas UK’s chief executive, said “I was pleased to meet Greg Clark MP, secretary of state for the newly formed department for business, energy and industrial strategy in Aberdeen today so soon after his appointment. He reinforced that the UK Government sees the oil and gas sector as a strategically important industry for the UK, and one which needs to be at the heart of the Government’s new industrial strategy.

“I today made a direct plea to the Oil and Gas Authority and the secretary of state to bring forward the next meeting of the important industry and governmental group, the MER UK Forum, to discuss the immediate challenges of low investment and activity facing the North Sea. I’m pleased to say they have agreed to do this.

“While tangible progress is being made by industry to tackle the current downturn and improve operational efficiencies, very real challenges are still being faced. There is an absolute need for governments, the regulator and industry to come together to make strategic interventions that will unlock investment and stimulate activity for the longer term. If we make the correct interventions now, the industry can continue to play a critical role in meeting the UK’s energy needs, support hundreds of thousands of jobs, and ensure the world-leading expertise that the sector possess are not lost.

“We look forward to working with Mr Clark and his team to help create a robust industrial strategy which recognises the importance of oil and gas as an indigenous, secure supply of energy and a bridge to a lower carbon economy, as well as remaining a vital contributor to the UK economy.”

Ends.

Funding the Future is the theme of Oil & Gas UK’s breakfast briefing at Aberdeen’s Exhibition and Conference Centre on August 23, sponsored by Deloitte. Speakers experienced in securing funding from new sources will discuss how adopting a fresh approach to financing can help companies overcome tough economic conditions to fuel business growth.

Derek Henderson, senior partner for Deloitte in Aberdeen, said: “Restricted access to capital can be a major obstacle for oil and gas companies to overcome – particularly in the current challenging climate. It’s more important than ever that firms come together to learn from one another, consider alternative sources of finance, discuss new ideas and help the industry embrace change. Unless industry and the finance community are proactive, a wealth of opportunities could be lost. We look forward to what will undoubtedly be another useful, timely and thought-provoking instalment in Oil & Gas UK’s series of Aberdeen Breakfast Briefings.”

Tom Wheeler, head of commercial, Oil and Gas Authority (OGA), will outline the OGA’s role and how it engages with owners, operators, prospective developers and contractors on strategies to maximise economic recovery from the UK Continental Shelf (UKCS).

Faroe Petroleum’s chief executive, Graham Stewart will provide insight into how an independent oil and gas operator finds innovative methods to finance exploration, appraisal and production activities in both Norway and the UK.

Richard Knox, managing director of East Coast Oil and Gas Engineering Ltd (EC-OG), will explain how he was successful in gaining funding from new investors including outsourcing specialist, Castle View Ventures, to back his company’s plans to develop and commercialise technology aimed at changing the economics of subsea power generation.

The outlook for investment and growth provides the theme for William Dowson, the Bank of England’s agent for Scotland, who will share with delegates both an updated economic profile of the business community and an insight into prevailing business conditions.

Following a short networking break after the speakers’ presentations, there will be a panel session. Places at the breakfast can be booked online at the Oil & Gas UK events web page here .

A limited number of free places at the breakfast are available to media. Please contact [email protected] or 01224 577331 to request a place.

Ends

Notes to Editors

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.

For examples of how the UK oil and gas industry is improving its average unit operating cost by more than 40 per cent compared with two years ago, please view our Efficiency Spotlights here.

 

Personal safety performance across oil and gas operations on the UK Continental Shelf (UKCS) continued to improve in 2015, according to the 2016 Oil & Gas UK Health & Safety Report published today (1 August).

 

There were no reported fatalities and reportable injury rates for the offshore oil and gas industry – using a metric set by the regulator – were lower than other sectors such as manufacturing, construction, retail and education, says the report which details performance for last year.

 

The lost time injury frequency rate on the UKCS was below the European average and lower than Norway, Denmark and Ireland.

 

The category of dangerous occurrences – which captures oil and gas releases, fires or explosions, dropped objects and weather damage – was also down overall, recording almost a 30% fall between 2013 and 2015.

 

Within that category, the total number of oil and gas releases rose slightly by 9%, with the majority of these classified as minor, while major releases remained the same.

 

A rise in minor releases could partially reflect that more and more operators are using technology that helps detect the smallest of escapes. New reporting criteria also came into place in the second half of 2015 and now includes releases that were not deemed reportable under previous legislation.  Hydrocarbon releases are a constant focus for industry which is committed to bringing these down.

 

Industry has worked hard to reverse the increase in safety-critical maintenance backlog, reported in last year’s Oil & Gas UK Health & Safety Report. A reduction across all three categories of planned, corrective and deferred backlog is now reported.

 

Mick Borwell, health, safety and environment policy director at Oil & Gas UK, said: “I am pleased to say there were no reported fatalities on the UK Continental Shelf in 2015. Health and Safety Executive statistics in our report show that the industry non-fatal injury rate and the over-seven-day and specified injuries rates also decreased.

 

“That picture of personal safety improvement was echoed in the smaller annual benchmarking exercise that we carry out ourselves. We looked at 28 production operators and found a continuing downward trend in the average frequency of reportable injuries and dangerous occurrences.

 

“This favourable performance reflects well on the contributions from everyone involved – offshore and onshore – and their unstinting efforts to manage and control hazards and to continually improve safety performance.

 

“Safety critical maintenance has been – and will remain – a focus for industry. Reductions are now reported on backlog and we will be publishing guidance for industry on optimising maintenance shortly.

 

“Hydrocarbon releases are also a perpetual focus for industry. We need to understand more about the slight rise in mainly minor releases to help redouble our efforts on driving these right down.

 

“This is a testing time for the industry and our commitment to safety has at times been questioned.

 

“However, our report demonstrates that safe operations continue to be intrinsic to how we go about our activities on the UK Continental Shelf, regardless of the oil price.

 

“It shows that the UK sector is focusing in the right areas and overall is heading in the right direction. The report is also a reminder that there is no place for compromise or complacency and that safety must remain at the top of our agenda.”

 

The Oil & Gas UK Health & Safety Report and an accompanying infographic can be downloaded here.

 

ENDS

 

Notes to Editors:

Mick Borwell, health, safety and environment policy director with Oil & Gas UK, is available for interview.  To arrange, contact Communications Adviser Jennifer Phillips on 01224 577279 or [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.

 

 

 

 

 

Mike Tholen – Upstream Policy Director at Oil & Gas UK, said:

“The industry is pleased to see the announcement by the Oil and Gas Authority (OGA) of the 29th Offshore Licensing Round from the UK Continental Shelf (UKCS).  This is the first licensing round to offer the Innovate Licence – a new more flexible approach developed by the industry in conjunction with the OGA which allows licensees more freedom in areas such as phasing and funding and staging of activity.

 

The industry is keen to encourage more innovative ways to boost exploration activity in the basin. The 1200 blocks on offer in the 29th licensing round include extensive new acreage, including the Rockall Trough and the Mid-North Sea High, identified by the industry as priority frontier areas where new data was acquired from the successful government-funded seismic shoot in 2015.

 

This 29th licensing round will help bring a fresh focus on exploration which remains vital to the future of the UKCS and a cornerstone of delivering MER (maximising economic recovery).  We must continue to work closely with the OGA and others in government to ensure that any discoveries are able to rapidly attract the investment funds needed for their development.”

More details about the 29th licensing round are available here

Industry lends support to launch of Oil and Gas Technology Centre

Deirdre Michie, chief executive, Oil & Gas UK, supported today’s (February 10) launch of the Oil and Gas Technology Centre in Aberdeen, she said:
“As our industry focuses on maximising economic recovery from the UK Continental Shelf, technology must play a pivotal role in helping the sector improve its global competitiveness by tackling some key challenges that the industry continues to face.
“Oil & Gas UK very much welcomes the creation of the Oil & Gas Technology Centre and the opportunity to work with it in establishing a world class centre of innovation and expertise.”

Two New Industry Leaders Join Oil & Gas UK’s Board

Two leading figures in the UK oil and gas industry, Greta Lydecker from Chevron Upstream Europe and ConocoPhillip’s Terri King, have joined the board at Oil & Gas UK, the sector’s leading trade association, it was announced today (26 January).
Greta Lydecker, managing director, Chevron Upstream Europe, and Terri King, president, UK ConocoPhillips, will both represent operating companies on the Board. With over 30 years at Chevron, Greta has worked in a variety of senior management roles encompassing oil and gas operations, planning and finance, and environmental management.  Terri King joined ConocoPhillips in 1991 and has significant international industry experience in leading upstream project teams in both Norway and the US.
Greta Lydecker said: “Our industry is facing many challenges and our continued efforts to deliver safe, reliable and affordable energy for the UK will be ensured through improved efficiencies, application of technology, and collaboration.  I am honoured to be joining the Board of Oil & Gas UK. I look forward to working closely with industry colleagues and key stakeholders to help improve business performance, maximise the economic recovery from the basin and safeguard its future.”
Terri King said: “Oil & Gas UK is setting a vision for global competitiveness in this challenging industry environment and I am excited to join the board at such a critical time. I was last in the North Sea in the 2005-2008 timeframe, working in the Norwegian Sector. Today, the basin maturity and commodity price environment brings additional challenges. Oil & Gas UK will play a vital role in ensuring proactive new approaches provide a path for continued energy production and investment. I look forward to being part of the team as they seek to deliver tangible results.”

Deirdre Michie, Oil & Gas UK’s chief executive, said: “I am delighted to welcome Greta and Terri to Oil & Gas UK’s board. Our industry recognises that tough times are continuing but the signs are that we are making progress in tackling our challenges and becoming more globally competitive. I believe we have a talented experienced Board on whose experience and guidance we can draw to enable this industry to deliver a safe, more sustainable and efficient industry for the future.”

The full list of board members is available here and on the Oil & Gas UK website

 

 

Two New Industry Leaders Join Oil & Gas UK’s Board

Two leading figures in the UK oil and gas industry, Greta Lydecker from Chevron Upstream Europe and ConocoPhillip’s Terri King, have joined the board at Oil & Gas UK, the sector’s leading trade association, it was announced today (26 January).
Greta Lydecker, managing director, Chevron Upstream Europe, and Terri King, president, UK ConocoPhillips, will both represent operating companies on the Board. With over 30 years at Chevron, Greta has worked in a variety of senior management roles encompassing oil and gas operations, planning and finance, and environmental management.  Terri King joined ConocoPhillips in 1991 and has significant international industry experience in leading upstream project teams in both Norway and the US.
Greta Lydecker said: “Our industry is facing many challenges and our continued efforts to deliver safe, reliable and affordable energy for the UK will be ensured through improved efficiencies, application of technology, and collaboration.  I am honoured to be joining the Board of Oil & Gas UK. I look forward to working closely with industry colleagues and key stakeholders to help improve business performance, maximise the economic recovery from the basin and safeguard its future.”
Terri King said: “Oil & Gas UK is setting a vision for global competitiveness in this challenging industry environment and I am excited to join the board at such a critical time. I was last in the North Sea in the 2005-2008 timeframe, working in the Norwegian Sector. Today, the basin maturity and commodity price environment brings additional challenges. Oil & Gas UK will play a vital role in ensuring proactive new approaches provide a path for continued energy production and investment. I look forward to being part of the team as they seek to deliver tangible results.”

Deirdre Michie, Oil & Gas UK’s chief executive, said: “I am delighted to welcome Greta and Terri to Oil & Gas UK’s board. Our industry recognises that tough times are continuing but the signs are that we are making progress in tackling our challenges and becoming more globally competitive. I believe we have a talented experienced Board on whose experience and guidance we can draw to enable this industry to deliver a safe, more sustainable and efficient industry for the future.”

Oil & Gas UK welcomes news from BP and EnQuest

Commenting on the sale of part of BP’s interests in the Magnus oil field and Sullom Voe Terminal to EnQuest, Oil & Gas UK Chief Executive Deirdre Michie said:

“This is an innovative deal which will open a new chapter in the life of Sullom Voe and the productive life of Magnus, an iconic North Sea oil field. It also sends a very positive signal on the opportunities available in the North Sea and is an indication of confidence that, even after producing oil for more than thirty years, this mature field still has more to give.

“The transfer of assets and infrastructure builds on a long-term trend to see ‘the right mature assets’ move into the right hands of established UK mature field operators and sees a fresh commitment to exciting development opportunities by established incumbent companies.”

Environmental performance of oil and gas sector captured in key report

Discharges to sea and emissions to the air by the UK’s oil and gas industry have been on an overall downward trend over the last 15 years, according to a key report published today (November 29) by the sector’s trade body.

The trend echoes the decline of UK oil and gas production together with effective process management and industry’s use of best available techniques, says Oil & Gas UK’s Environment Report 2016.

The report – containing data reported to industry’s regulators – captures the sector’s environmental performance to the end of 2015.

Last year industry had its first increase in production in 15 years, and the extraction of more oil and gas resulted in a slight rise in 2015 in the mass of production chemicals discharged and produced water[1]  volumes, as well as in emissions of carbon dioxide, nitrogen oxides, carbon monoxide and sulphur dioxide.

However, the proportion of the rise was not as great as the production upturn itself, demonstrating industry’s commitment to environmental management, as well as its efforts to minimise emissions.

The average oil in water concentration in produced water last year was less than half of the recommended limit set by the OSPAR Commission.

Industry takes every step to prevent accidental and chemical releases and last year saw the smallest mass on record of accidental oil released to the marine environment. With 82 million tonnes of oil equivalent produced in 2015, accidental oil releases represented less than 0.00002% of total oil production.

While there was a slight rise in the mass of chemicals released last year, almost half was the result of three incidents. The overall mass of chemicals accidentally released between 2010 and 2015 is down 65 per cent.

Carbon dioxide emissions from offshore oil and gas production contributed just over 3 per cent of the UK’s total CO2 emissions in 2015 – the same level as the previous year.

The report does show a continuation of a rise in waste materials being returned to shore from offshore. However, part of last year’s rise was due to the downturn, as much of the waste came from sludges, liquids and tank washings from mobile drilling rigs being taken off hire.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “The Environment Report comes at a challenging time for the UK oil and gas which is working extremely hard to navigate through the downturn, while maintaining environment and safety standards.

“Despite the UK Continental Shelf being a mature basin with technically challenging production, the overall trend for the last 15 years is downwards for discharges, emissions and accidental releases. Put simply, we are using the same amount of chemicals and emitting less CO2 in the production of more oil and gas.

“Industry is committed to minimising the effect on the natural environment and all operators have an environmental management system which is designed to minimise environmental effect.”

The full report is available at www.oilandgasuk.co.uk/environmentreport

An infographic illustrating the report is also available .

ENDS

Notes to Editors:

Mick Borwell, Oil & Gas UK’s Health, Safety and Environment Director, is available for interview. He is attending the trade body’s annual environment seminar taking place at Aberdeen Exhibition and Conference Centre today. To arrange, call or text Communications Adviser Jennifer Phillips, also at the AECC, on 07961 076645 or email [email protected].

[1] Produced water is water brought to the surface with hydrocarbons during production.

Oil & Gas UK Calling on Government for a Recommitment to the Industry

Trade body Oil & Gas UK has written to the Chancellor asking him to use his Autumn Statement later this month to help boost investor confidence in North Sea exploration and production.

The North Sea oil and gas industry currently faces fierce global competition to attract investment, with the combined challenges of a low oil price, a maturing industry and uncertainty for the sector. Oil & Gas UK’s recently published Economic Report 2016 found that investment in the UK continental shelf has fallen to around £9 billion this year, from a record £14.8 billion in 2014, illustrating the difficulty for investors in accessing finance for asset development.

Deirdre Michie, chief executive, Oil & Gas UK said:

“Sentiment and stability are important, and the Chancellor has a real opportunity to use the Autumn Statement to send a clear message to investors that the UK Continental Shelf is a great place to do business.

“Exploration and development drilling has fallen to record lows and industry figures reveal a drought of new investment approved in 2016 and 2017 looks no better.

“I have asked Mr Hammond to get behind the UK’s oil and gas industry by providing certainty in our fiscal regime, recommitting to the Treasury’s ‘Driving Investment’ strategy for the sector and, as part of the UK’s new industrial strategy, recognising our supply chain as a key strength in the economy, with world leading capability – equally valuable as aerospace or the automotive sectors, for example.

“The UK oil and gas industry is much more globally competitive than it was two years ago. The cost of doing business in the North Sea has come down significantly and production has increased for the first time in 15 years thanks to the industry’s efforts to make its operations more efficient.

“We urgently need to see new entrants encouraged into the market and increased asset trading is one area that could boost activity in the North Sea by facilitating the trading of late-life assets.

“But investors are also looking for certainty and we can’t underestimate the importance of government sending a strong signal of confidence and support.”

Today Oil & Gas UK is asking the UK Government for four commitments as part of the upcoming Autumn Statement:

  • The UK Government to re-affirm their continued commitment to the ‘Driving Investment’ fiscal strategy which recognises the need for a more competitive, simple and predictable fiscal regime as the basin continues to mature;
  • Promote the increasing competitiveness of the basin as well as the capability of the UK’s oil and gas supply chain, both nationally and internationally, as part of the UK’s new industrial strategy, recognising our sector as a key element of the economy;
  • Complete the constructive work on decommissioning tax relief over recent budgets by introducing measures to enable tax relief to be transferred upon an asset sale. This would unlock the trading of assets by encouraging new entrants to the market and freeing up new investment;
  • Introduce new measures to extend the Investment Allowance for operating expenditure that is aimed at increasing production from an asset or keeping it producing for longer. This could include investment in Enhanced Oil Recovery techniques.

 

Less than £100 million of fresh capital has been committed to the basin this year, with only one new field approved – this compares with five greenfield projects sanctioned last year with associated development capital at more than £4.3 billion.

These figures from the Economic Report 2016 demonstrate that urgent action is required if industry is to maximise the economic recovery of the up to 20 billion barrels of oil and gas equivalent still available in the North Sea.

 

-ENDS-

For further information, please contact Lucy Gordon on 01224 577331 [email protected] or Jennifer Phillips on 01224 577279 [email protected]
Notes to Editors

  1. Oil & Gas UK published its flagship annual Economic Report 2016 on 27 September and can be read in full here. An infographic summarising the key findings of the report can be found here.
  2. The UK Government’s fiscal strategy ‘Driving Investment’ was first published in 2014.
  3. 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.

Winners of Oil & Gas UK Awards 2016 Announced

The winners of the Oil & Gas UK Awards 2016, sponsored by Shell U.K. Limited, were announced last night in Aberdeen. Winners were presented with their awards at an evening ceremony on Thursday 3rd November, where over 450 people from across the oil and gas industry gathered to celebrate their company and individual achievements.

Oil & Gas UK’s chief executive, Deirdre Michie, commented:

“We all know that our industry continues to face challenging times and that tough decisions have had to be made. This is why it is more important than ever that we come together and take time to celebrate the great people and achievements that have made this industry a national treasure that we are all very proud of.

“In this our tenth year of the Oil & Gas UK Awards we received an unprecedented number of nominations and the finalists are testament to the exceptional work being delivered by remarkable people across our industry.

“It is through the tenacity and determination of our industry’s workforce that over the last five decades we have pushed the boundaries of technology to meet the engineering challenges of operating in one of the most hostile basins in the world. Our 2016 Awards highlight and share the examples of success in the last year, inspiring our drive for improvement in the future.

“Whilst we look back with pride on our achievements over the past year, we also look forward, confident in the knowledge that with up to 20 billion of barrels of oil and gas still to get after, we can and will deliver a sustainable and competitive industry for the future.”

The event was hosted by the BBC’s Scotland Editor Sarah Smith: Sarah reports on every element of Scotland from its politics to its economic performance. She has also worked for Channel 4 News where her reporting on the Madrid train bombings won an International Emmy.

The evening also included a speech from Ben Taylor, Country Commercial Lead at Shell U.K. Limited, who reflected on an ever-adapting industry as it responds to oil price fluctuations, a maturing basin and most recently the decision to leave the EU.

Deirdre Michie added:

“I am pleased to say we have two new awards for 2016, the Diversity and Inclusiveness Award that recognises the contribution diverse teams and inclusive behaviours can deliver to our industry, and of course, to the bottom line of a business. We also wanted to mark our 10th anniversary of awards in a special way and I am delighted that this year we have acknowledged Jeremy Cresswell, energy editor of the Press and Journal for the contribution he has made to the oil and gas industry with the Significant Achievement Award.”

The winners across the eight categories were:

Apprentice of the Year – Louise Jamieson, Total E&P UK

Graduate of the Year – Sarah-Alice Davies, Shell U.K. Limited

Mentor of the Year – Girish Rajkumar Kabra, Centrica

Workforce Engagement (SME) – Merlin Energy Resources Ltd

Workforce Engagement (Large Enterprise) – Nexen Petroleum UK Limited

Business Innovation and Efficiency (SME) – Cyberhawk Innovations

Business Innovation and Efficiency (Large Enterprise) – Centrica

Diversity and Inclusiveness- Amec Foster Wheeler

MER UK Awards – ETAP Partners: BP, Shell, Esso, JX Nippon, Zennor and Southern Wye Project Partners: ConocoPhilips, Repsol Sinopec, Maersk and Ithaca

Significant Achievement Award – Jeremy Cresswell, Energy Editor, Press and Journal

The Oil & Gas UK Award for Apprentice of the Year, sponsored by OPITO, and the Oil & Gas UK Award for Graduate of the Year recognise the next generation of talent in the offshore oil and gas industry.

Apprentice of the Year, Louise Jamieson, Apprentice Production Operator, Total E&P UK Ltd, is a role model to those around her, demonstrating a level of commitment and competency in a physically demanding role far surpassing expectations. Arriving at the Shetland Gas Plant during its construction phase she became a leader in delivering technical training for other apprentices and operators. This saved time and money by creating and delivering training in-house.

Sarah-Alice Davies, CWI Engineer – Design, Shell U.K. Limited, won Graduate of the Year 2016. The judges heard how she is one of the first graduates to attain two international postings at difficult, remote locations. Sarah’s competence has given her the opportunity to deliver the first shale oil to the Middle East from Jordan’s deserts and supervise rig and interventions operations in the jungles of Gabon.

The Oil & Gas UK Award for Mentor of the Year went to Girish Rajkumar Kabra, Developments Manager, Centrica. Girish understands the importance of good mentoring and its ability to transform careers, and his commitment as a mentor has helped his mentees develop to their full potential. Many are already working at senior positions on medium to major projects at young ages.

The Oil & Gas UK Award for Workforce Engagement recognises the outstanding steps taken by companies to involve their people, give them a voice in the organisation and develop an empowering culture.

SME winner Merlin Energy Resources Ltd impressed judges with its climate of openness and transparency throughout the business. This inclusive approach has paid dividends as engaged staff can devote more energy focussing on customers and their needs.

The Large Enterprise Award for Workforce Engagement was sponsored by ECITB. This award was won by Nexen Petroleum UK Ltdwho have taken inspiration from the cycling world and the philosophy behind ‘Marginal Gains Theory,’ to encourage the workforce to drive improvements and better working practices in everyday tasks. The company was inundated with over 130 ideas for demonstrating the successful take-up of this cultural change campaign by the workforce.

The Oil & Gas UK Award for Business Innovation and Efficiency champions those enterprises delivering improved performance through innovation and efficiency initiatives.

As SME winner, Cyberhawk Innovations impressed the judges with its revolutionary step in bringing Unmanned Aerial Vehicles (UAVs) to the oil and gas sector. Last year, Cyberhawk carried out the world’s first inspection of an internal storage tank on board a Maersk FPSO in the UKCS, reducing the safety risk of industrial inspections, and minimising production downtime by avoiding shutdowns.

Centrica took the Large Enterprise Award by supporting an onshore trial of a radical new technology for well abandonment. Interwell’s thermite plug seals off the well by melting both the well components and the rock formation around them to recreate the cap rock. The trial results demonstrated that this technology could reduce abandonment costs in the North Sea by more than 50 per cent.

The MER UK Awards – sponsored by the Oil and Gas Authority (OGA), award those companies whose cooperative approach and positive behaviours have helped to maximise the economic recovery of oil and gas from the UKCS.

The winners on the evening were: ETAP Partners: BP, Shell, Esso, JX Nippon and Zennor for realigning the ownership interests, associated decision making process and cost sharing to best reflect the remaining value of the fields. This unique approach supported investment and value recovery activities, demonstrating that a sustainable framework can be delivered in even the most challenging circumstances. The Southern Wye Project Partners: ConocoPhilips, Repsol, Maersk and Ithaca also received an MER UK Award. Success of this greatly accelerated project, a fast-track and complex subsea tie-in, stemmed from all parties working together to overcome commercial, legal and logistical challenges. The behaviours during the project embody MER UK and demonstrated that overall value can be increased through collaboration.

The Significant Achievement Award marks our 10th anniversary of the Oil & Gas UK Awards in a special way, acknowledging the significant contribution to the oil and gas industry of Jeremy Cresswell, Energy Editor, Press and Journal, who has worked tirelessly over the years to champion our industry.

 

– Ends –

 

Note to Editors

 

For further information, please contact Lucy Gordon on 01224 577331 or [email protected] or Jennifer Phillips on 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.

 

Share Fair Provides Platform to Highlight UKCS Opportunities and Industry Efficiency Tools

Oil & Gas UK’s Share Fair, which aims to shine a brighter light on the business opportunities available on the UK Continental Shelf, attracted almost 700 people to Aberdeen’s Exhibition and Conference Centre from across the industry’s world class supply chain including operators, contractors and SMEs yesterday ( November 3).

In welcoming delegates to the event, Oil & Gas UK’s chief executive, Deirdre Michie, recognised how severely the supply chain has been  impacted by the current downturn but added: “Industry is moving in the right direction and becoming more competitive thanks to the efforts of companies across the whole sector.”

Dominic Macklon, President UK for ConocoPhillips, said: “We know this has been a really tough downturn but governments have listened and brought in a competitive and stable tax regime in accordance with their “Driving Investment” roadmap and this wouldn’t have happened without operators and the supply chain working together to reduce costs.”

As Co Chair for Contractors on Oil & Gas UK’s board, Terry Savage, Corporate Relationship Director, Global Energy Group, said: “Ultimately we need to all play our part in creating a new, collaborative and cost challenging environment, that helps to stimulate the activity which the supply chain desperately needs. Not easy to do, but nevertheless vital for success.  The Efficiency Task Force is a key driver in promoting a culture of trust where operators and suppliers apply shared knowledge and expertise to unlock projects that are uneconomic in the current climate.”

Members of the Efficiency Task Force demonstrated its new interactive toolkit steering delegates to resources including guidelines to help optimise maintenance and the Tender Efficiency Framework aimed at providing guiding principles to help eliminate duplication and reduce wastage in procurement processes.

The toolkit includes information to help companies rationalise inventories to reduce storage and maintenance costs plus interactive mechanisms like the Rapid Efficiency Exchange which showcases how companies are working smarter, innovatively and co-operatively to tackle the sector’s most pressing challenges.

Among the most progressive of the Efficiency Task Force projects, is the Subsea Standardisation Group’s work to drive greater simplification in the execution of subsea development projects. In Share Fair’s new Innovation Hub, delegates heard about the progress achieved by the work group which has led more than 70 people from 30 companies to pool their expertise to deliver a framework that, if adopted widely by the industry, could potentially deliver savings off up to 30 per cent.

The Innovation Hub also provided an arena for suppliers and operators to engage in intensive discussion and knowledge exchange as part of the interactive ‘sandpit’ sessions co-ordinated by the Oil and Gas Technology Centre, and designed to generate innovative solutions in the areas of corrosion under insulation and vessel inspection.

Share Fair’s classic attractions such as the forward plan presentations delivered by major purchaser companies drew high levels of interest as did the one-to-one business discussions both of which helped to pinpoint the range of business opportunities available on the UK Continental Shelf over the next 18 months. Delegates heard presentations from Aker Solutions Ltd, Amec Foster Wheeler, BP, Chevron North Sea Ltd, Nexen Petroleum Ltd, and Total E&P Ltd while around 950 one to one sessions were conducted by 19 major purchaser companies.

Stephen Marcos Jones, Business Excellence Director with Oil & Gas UK, added: “Everyone is aware of the difficult times our industry is experiencing, however Share Fair plays a key role in making the opportunities more visible.   There has been a real buzz at our event with great dialogue between operators and suppliers. It is exactly these kind of exchanges that will unlock efficiency, build business and help deliver a sustainable future for the North Sea where many billion barrels of oil and gas remain to be recovered.”

ENDS

 

For further information, please contact Lucy Gordon on 01224 577331 or [email protected]

 

  1. 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.
  2. The link to the Efficiency Task Force toolkit is at http://oilandgasuk.co.uk/etf-toolkit.cfm
  3. Access to all presentations delivered at Share are available here http://oilandgasuksharefair.co.uk/presentations/

 

Oil & Gas UK Publishes Guidelines on High Pressure High Temperature Wells

In line with its commitment to continually reviewing and improving the safety and performance of all aspects of well practices on the UK Continental Shelf (UKCS), Oil & Gas UK is today (October 28) releasing new guidelines on wells with high pressure high temperature (HPHT) properties.

Mike Tholen, upstream policy director, at Oil & Gas UK, said: “Even in a mature basin, the High Temperature High Pressure (HPHT) resource base remains an exciting opportunity. The Guidelines for HPHT well design, operation and maintenance published today have been developed by Oil & Gas UK’s Wells Forum to share industry knowledge and best practice for the benefit of both well operators and drilling contractors alike.

“Building on Oil & Gas UK’s Well Integrity Guidelines published earlier this year, this publication provides additional information in areas including project planning, well design, HPHT cementing and well construction operations, well testing and abandonment. These guidelines will add to the industry’s shared knowledge as we seek to exploit the potential of the UKCS to the full in pursuit of Maximising Economic Recovery.”

As part of the industry’s efforts to tackle its cost base and improve efficiency, Oil & Gas UK’s Guidelines on High Pressure High Temperature Wells provide the sector with a common framework to outline good practice, reduce operational complexity and improve safety performance.

Ends

Notes to Editors

For further information, please contact Lucy Gordon on 01224 577331 or [email protected]

1. 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.

2. The publication released today comprises: Guidelines on High Pressure High Temperature Wells (Issue 1). The guidelines are available to Oil & Gas UK members to download for free via the Oil & Gas UK website or to non- members for a small charge here

3. In this document high pressure is defined as either the pore pressure of any porous formation to be drilled exceeds 0.8 psi/ft or which requires deployment of pressure control equipment with a rated working pressure in excess of 690 bar (10,000 psi).

4. High temperature is defined in these guidelines as when the undisturbed bottom hole temperature is greater than 149 degrees C (300 F).

5. The guidelines help companies (e.g. well-operators and drilling contractors) better understand and comply more effectively with the relevant legislation; mainly the Offshore Installations and Wells (Design and Construction etc) Regulations 1996 and the Offshore Installations (Safety Case) Regulations 2015.

6. The Wells Forum is an Oil & Gas UK forum comprising representatives from over 45 well-operators; it interfaces with other key industry stakeholders such as the drilling contractor and well services contractor communities.

7. The Wells Forum is responsible for reviewing the following documents as part of a rolling programme:
• BOP Issues
• Competency, Behaviours, Human and Organisational Factors
• Well Integrity
• Well Suspension and Abandonment
• Well Capping
• Relief Well Planning Requirements
• Verification
• Well Examination
• High Pressure High Temperature (HPHT)
• Process Safety Key Performance Indicators (KPI)

All duty holders shall comply with their duties under all relevant regulations. These guidelines will help but are not a substitute for a full understanding of the regulations.

Managing Cumulative Risk – New Guidelines from Oil & Gas UK

New guidelines for managing risk in the UK offshore oil and gas industry have been published by Oil & Gas UK.

Safety experts from across the industry worked to develop the Cumulative Risk Guidelines, which aim to increase awareness of cumulative risk and provide guidance on how to manage it.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “The UK upstream oil and gas industry operates within a goal-setting regulatory framework which sets out the guiding principles for how it manages major accident hazards.

“But there are sometimes small changes which occur outside of standard day-to-day hazard management, and it’s these which the new publication seeks to address.

“Minor deviations in hazard management can occur and have a small associated risk when examined on their own, however, when these are considered cumulatively there is potential for a significant change in overall risk.”

Technical specialists from a number of Oil & Gas UK’s member companies helped shape the document that includes chapters on assessing cumulative risk, suggestions for approaches and methods, and step-by-step examples of how to ensure risk remains as low as reasonably practical.

“Our guidelines will give offshore installation managers, operations manager and asset managers the means to make more informed decisions when events deviate from normal risk management processes.”

The guidelines available to Oil & Gas UK members and associates free, and at £50.00 for non-members, can be downloaded here.
ENDS

Issued by the Oil & Gas UK Communications Team. Contact Communications Adviser Lucy Gordon on [email protected] / 01224 577331.

Notes to Editors

  • 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.

High Demand Expected as Oil & Gas UK Opens Bookings for One-to-Ones at 2016 Share Fair

Bookings are now open for one-to-one appointments between supply chain firms and the operator and major contractor companies at Oil & Gas UK’s 2016 Share Fair. These one-to-ones will promote engagement and help illuminate the sector’s business opportunities at this event in Aberdeen’s Exhibition and Conference Centre on November 2.

Ken Cruickshank, Oil & Gas UK’s supply chain manager, said: “Bookings for the one-to-one business discussions are always snapped up fast because participants know they are a highly effective way to gain invaluable access to key decision makers including client contract and purchasing teams. In turn, operators and major contractors use these conversations to identify innovative value-adding technologies and enterprising new entrants to the supply chain sector.

“In today’s tough economic climate, Oil & Gas UK’s Share Fair plays a key role in bringing the market together to provide greater insight into the business opportunities that the sector still has on offer.  There will be presentations of forward work plans, as well as the one-to-one meetings, throughout the day delivered by operators and major contractors. These will include Aker Solutions; Amec Foster Wheeler; Apache North Sea; BP Exploration Operating Company Limited; Chevron North Sea Limited; ConocoPhillips; First Point Assessment FPAL; Halliburton; Nexen Petroleum UK Ltd; Petrofac; Premier Oil; Repsol Sinopec Resources UK Limited; Shell U.K. Ltd; Technip UK Limited; TOTAL E&P UK LIMITED; and Wood Group.

Oil & Gas UK’s Efficiency Task Force will be at the Share Fair demonstrating how it is helping the industry to lower costs and improve efficiency through collaboration, uptake of new technologies and streamlining of processes to restore competitiveness to the sector. Delegates will hear how the Efficiency Task Force has evolved new tools and guidance from current projects and also how they can get involved in working together with clients to share knowledge and expertise to unlock efficiency.”

Ends

For more information about participating in the Share Fair, Oil & Gas UK has developed a dedicated microsite which is available via its website here.

http://oilandgasuksharefair.co.uk/

 

Notes to Editors

Media wishing to attend the Share Fair should contact Oil & Gas UK Communications Adviser Lucy Gordon on 01224 577331 / [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.
  • As part of the work done by Oil & Gas UK’s Efficiency Task Force (ETF) we have pulled together a suite of pan-industry tools to support collaboration. These can be found on the ‘Efficiency’ pages of our website.

Oil & Gas UK’s Response to the Publication of the European Aviation Safety Agency’s Investigation into the Norwegian Helicopter Accident

Mick Borwell, Oil & Gas UK’s HSE policy director, said:

“While we welcome the news that the EASA has published its report into the Norwegian helicopter accident in April 2016, and will be studying it in detail, we should also await the findings of the CAA investigation which will be published in due course.

Inevitably, concerns remain regarding helicopter safety and we’ll need to work together with the Civil Aviation Authority, Government, trade unions, oil and gas companies, helicopter operators and the workforce to ensure that the conclusions of both these investigations are fully understood by everyone involved and that appropriate action is taken in response to any recommendations.”

The report is available at this link https://www.easa.europa.eu/newsroom-and-events .

Oil & Gas UK Makes Four Board Appointments

Oil & Gas UK, the leading trade association for the UK offshore oil and gas sector, has announced today (October 4) that it has appointed four new members to its board.

Cory L. Loegering, region vice president and managing director for Apache North Sea; Robin Allan, Premier Oil’s director, North Sea and Exploration; and Bill Dunnett, managing director of Repsol Sinopec Resources UK have joined the board as representatives of the operator community. Peter Wilson, vice president, operations, Rowan Companies, has been appointed to contribute to the representation of contractors and supply chain companies on the board.

With almost 40 years of oil and gas experience including exploration and production activities in the Gulf of Mexico, Mr Loegering, said:

“Oil & Gas UK plays a prominent role in representing the oil and gas community in the UK.  Our industry faces many difficult challenges in a low commodity price environment.  With a focus on efficiency and collaboration across all aspects of our business, we hope to operate more efficiently while stimulating activity and reinvigorating the UK oil and gas sector.”

Robin Allan, who has built up decades of international geological and business development expertise, said:

“The lower oil price has delivered a wake-up call to our industry, confirming our need to work collaboratively to ensure the UK maintains its position as a global centre of excellence for the oil and gas industry. To continue exploration and development of our nation’s oil and gas, we need our Government to provide tangible incentives to help British companies.   The Oil & Gas UK board has a vital and pro-active role to play in both these aspects.”

With significant expertise in the operation of mature assets on the UK Continental Shelf, Bill Dunnett said:

“The industry has experienced unprecedented challenges recently and responded well.  We need to share best practices and ensure we remain the world leader in HSE excellence, while continuing to improve overall effectiveness across all sectors. The case for long-term investment in our industry remains strong and the board will play a key part in promoting its significant potential.”

Bringing extensive knowledge of well operations in the UK, US, Brazil and Europe to his role, Peter Wilson said:

“During these challenging times, it is essential that we work together to ensure the sustainability of the North Sea as a viable hydrocarbon producing basin. The board provides the ideal arena for us to collectively help steer the industry towards improved collaboration, stimulate increased well activity and build a brighter long-term future for the oil & gas business in the UK.”

Deirdre Michie, Oil & Gas UK’s chief executive, said: “Many challenges remain for this industry but our latest Economic Report demonstrates that the collective actions we have taken so far are having a positive impact on improving the performance of the sector. The guidance of Oil & Gas UK’s board is key to this process. As I warmly welcome the new members, I would also like to thank those colleagues who have left the board for their commitment and service to the industry whose contribution has helped us make progress in restoring competitiveness to the sector”.

Ends

Notes to Editors

For more information, please contact Lucy Gordon at [email protected] or 01224 577331.

  • 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.
  • The full list of board members is available here .
  • As part of the work done by Oil & Gas UK’s Efficiency Task Force (ETF) we have pulled together a suite of pan-industry tools to support collaboration. These can be found on the ‘Efficiency’ pages of our website.

Report highlights improved competitiveness of UK oil and gas industry but fresh investment is now vital

  • Industry efficiencies are driving a 45% drop in the cost of extracting a barrel of oil or gas from the UKCS
  • Production up by 10.4% in 2015, the first increase in 15 years
  • Major challenges remain, with record low exploration and a lack of capital investment

 

Oil & Gas UK’s Economic Report 2016 published today (27 September 2016) demonstrates the tenacity of the UK offshore oil and gas industry despite difficult market conditions.

 

Few industries could have achieved the performance improvements the UK’s oil and gas industry has demonstrated over the last 18 months. Its determination has seen the cost of extracting a barrel of oil or gas from the UK Continental Shelf (UKCS) cut to nearly half its cost since 2014 and a 10 per cent increase in production.

 

Despite this good news, major challenges remain. The supply chain has seen an average 30 per cent fall in revenues since 2014 and ongoing job losses – some 120,000 are expected to have been lost over the past two years – are the personal cost to individuals and families across the UK.

 

Deirdre Michie, Oil & Gas UK’s chief executive, said: “The UKCS is in urgent need of fresh investment to boost exploration and drive activity, particularly for the supply chain.

 

“Exploration has fallen to record lows and little new investment has been approved in 2016 and 2017 looks no better.  Increased asset trading is one area that could free up new investment by facilitating the trading of late-life assets.

 

“In light of this I am calling on governments today to vigorously champion the UK’s oil and gas industry, by providing certainty in our fiscal regime, encouraging new entrants to the market and recognising our supply chain as vitally important to the economy.

 

“The evidence in the report demonstrates what our industry can achieve when the basin’s competitiveness is addressed and the tax regime reformed. Now it is time for the UK and Scottish Governments to reinforce their efforts to promote the UKCS, nationally and internationally, as an attractive investment with world leading capability from front end exploration to late life operations.”

 

Industry will continue to build on the achievements to date of cost reduction and efficiency improvement and will require the  efforts of governments, HM Treasury, the Oil and Gas Authority and the Department of Business Energy and Industrial Strategy to continue. Today, Oil & Gas UK is making three asks:

  • The UK Government to re-affirm their continued commitment to the ‘Driving Investment’ fiscal strategy which recognises the need for a more competitive, simple and predictable fiscal regime as the basin continues to mature;
  • HM Treasury to complete the constructive work on decommissioning tax relief over recent budgets by introducing measures to enable tax relief to be transferred upon an asset sale to facilitate the trading of assets, encouraging new entrants to the market and liberating new investment for buyers and sellers alike;
  • The UK and Scottish Governments to promote the increasing competitiveness of the basin as well as the capability of the UK’s oil and gas supply chain, both nationally and internationally, as part of the UK’s new industrial strategy, recognising our sector as a key element of the economy.

-Ends-

For further information, please contact Lucy Coleman on 01224 577 343 or [email protected] or Jennifer Phillips at [email protected]01224 577279 or Lucy Gordon at [email protected] or 01224 577331.

 

Notes to Editors

  1. The report can be found here .
  2. An infographic outlining the key facts of the report can also be found attached.
  3. 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.
  4. The UK Government’s fiscal strategy ‘Driving Investment’ was first published in 2014.
  5. As part of the work done by Oil & Gas UK’s Efficiency Task Force (ETF) we have pulled together a suite of pan-industry tools to support collaboration. These can be found on the ‘Efficiency’ pages of our website.

Oil & Gas UK Publication Promotes Industry Good Practice for Reviewing Maintenance Regimes

A new publication launched by Oil & Gas UK today (11 August), “Maintenance Optimisation Reviews: Sharing Experience and Learning” will contribute to industry efforts to promote improvements in major accident hazard management and operational efficiency on offshore oil and gas installations.

Mick Borwell, Oil & Gas UK’s HSE Policy Director said: “The industry’s focus on ensuring the continued safety of offshore operations means equipment maintenance must be carried out to the highest standards. Maintenance regimes are subject to regular review to ensure they remain fit-for-purpose and enable operators to continue safely operating equipment and achieve their business objectives. By capturing the experience of specialists in maintenance and asset integrity, we believe this document will improve awareness of how the industry can optimise maintenance reviews to deliver safe, reliable and sustainable operations and contribute to tackling the backlog in safety critical maintenance.”

Technical specialists from a number of Oil & Gas UK’s member companies, who have been successful in delivering improvements and reducing backlog, have been involved in developing the document. The document provides examples of good practice in how to implement structured reviews of safety and business critical equipment maintenance as well as, two practical case studies.

Mr Borwell added: “We appreciate the opportunity to share with the wider industry the expertise of those companies who contributed to this document, which we believe will support robust and effective maintenance optimisation reviews. Promoting improvements in maintenance remains a key focus for the industry in its efforts to maximise economic recovery from the UKCS. The intention is to monitor uptake of the document and the ongoing effectiveness of efforts in this area, using key performance indicators to track progress in reducing the maintenance backlog.”

ENDS

 

Notes to Editors:

Mick Borwell, health, safety and environment policy director with Oil & Gas UK, is available for interview.  To arrange, contact Communications Adviser Lucy Gordon on 01224 577331 or [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.

The publication is available to Oil & Gas UK members to download for free via the Oil & Gas UK website or to non- members for a small charge here.

New Look for Annual Safety Recognition Awards

A new look event will next week (Wednesday, August 17) celebrate the individuals and companies coming up with new ideas and ways for making the UK oil and gas industry as safe as it can be.

The Offshore Safety Awards – organised by Oil & Gas UK and Step Change in Safety with Maersk Oil as principal sponsor – takes place at the Aberdeen Exhibition and Conference Centre between 8am and 1.30pm and is the successor to the UK Oil and Gas Industry Safety Awards, also organised by both organisations.

Nominees in six different categories have been whittled down to 18 finalists and each will take their turn at different stands explaining to those attending what they or their company has done to earn their finalists’ place. Their efforts will also be explained via video selfies.

Event attendees will then vote for who they want to win each category via electronic polling.

Mick Borwell, Director of Health, Safety and Environment Policy, said: “We have taken a fresh approach with the Offshore Safety Awards – one that is very much in keeping with the sharing and learning culture in industry.  We hope those attending will leave feeling inspired from some of the great initiatives being showcased at our event to further improve safety in our sector.”

Les Linklater, Executive Director of Step Change in Safety, added: “Award-winning can be a bit clichéd but it means a lot to all the finalists and the ultimate winners.  This year the finalists will share first hand their work with industry leaders and their peers, they can point to the nomination and the reasons it impacts safety positively. It’s such an authentic way for industry to say “well done – we rate the work you do”.

ENDS

 

Notes to Editors:

Media can attend the event – please confirm your attendance with Jennifer Phillips [email protected] or Lucy Gordon [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.

Oil & Gas UK Secures Early Forum Following Meeting with New Secretary of State for Business, Energy and Industrial Strategy

Deirdre Michie, Oil & Gas UK’s chief executive, said “I was pleased to meet Greg Clark MP, secretary of state for the newly formed department for business, energy and industrial strategy in Aberdeen today so soon after his appointment. He reinforced that the UK Government sees the oil and gas sector as a strategically important industry for the UK, and one which needs to be at the heart of the Government’s new industrial strategy.

“I today made a direct plea to the Oil and Gas Authority and the secretary of state to bring forward the next meeting of the important industry and governmental group, the MER UK Forum, to discuss the immediate challenges of low investment and activity facing the North Sea. I’m pleased to say they have agreed to do this.

“While tangible progress is being made by industry to tackle the current downturn and improve operational efficiencies, very real challenges are still being faced. There is an absolute need for governments, the regulator and industry to come together to make strategic interventions that will unlock investment and stimulate activity for the longer term. If we make the correct interventions now, the industry can continue to play a critical role in meeting the UK’s energy needs, support hundreds of thousands of jobs, and ensure the world-leading expertise that the sector possess are not lost.

“We look forward to working with Mr Clark and his team to help create a robust industrial strategy which recognises the importance of oil and gas as an indigenous, secure supply of energy and a bridge to a lower carbon economy, as well as remaining a vital contributor to the UK economy.”

Ends.

Innovative Approaches to Funding Business Growth the Topic for Breakfast Briefing

Funding the Future is the theme of Oil & Gas UK’s breakfast briefing at Aberdeen’s Exhibition and Conference Centre on August 23, sponsored by Deloitte. Speakers experienced in securing funding from new sources will discuss how adopting a fresh approach to financing can help companies overcome tough economic conditions to fuel business growth.

Derek Henderson, senior partner for Deloitte in Aberdeen, said: “Restricted access to capital can be a major obstacle for oil and gas companies to overcome – particularly in the current challenging climate. It’s more important than ever that firms come together to learn from one another, consider alternative sources of finance, discuss new ideas and help the industry embrace change. Unless industry and the finance community are proactive, a wealth of opportunities could be lost. We look forward to what will undoubtedly be another useful, timely and thought-provoking instalment in Oil & Gas UK’s series of Aberdeen Breakfast Briefings.”

Tom Wheeler, head of commercial, Oil and Gas Authority (OGA), will outline the OGA’s role and how it engages with owners, operators, prospective developers and contractors on strategies to maximise economic recovery from the UK Continental Shelf (UKCS).

Faroe Petroleum’s chief executive, Graham Stewart will provide insight into how an independent oil and gas operator finds innovative methods to finance exploration, appraisal and production activities in both Norway and the UK.

Richard Knox, managing director of East Coast Oil and Gas Engineering Ltd (EC-OG), will explain how he was successful in gaining funding from new investors including outsourcing specialist, Castle View Ventures, to back his company’s plans to develop and commercialise technology aimed at changing the economics of subsea power generation.

The outlook for investment and growth provides the theme for William Dowson, the Bank of England’s agent for Scotland, who will share with delegates both an updated economic profile of the business community and an insight into prevailing business conditions.

Following a short networking break after the speakers’ presentations, there will be a panel session. Places at the breakfast can be booked online at the Oil & Gas UK events web page here .

A limited number of free places at the breakfast are available to media. Please contact [email protected] or 01224 577331 to request a place.

Ends

Notes to Editors

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.

For examples of how the UK oil and gas industry is improving its average unit operating cost by more than 40 per cent compared with two years ago, please view our Efficiency Spotlights here.

 

Offshore safety continues to improve, sector report shows

Personal safety performance across oil and gas operations on the UK Continental Shelf (UKCS) continued to improve in 2015, according to the 2016 Oil & Gas UK Health & Safety Report published today (1 August).

 

There were no reported fatalities and reportable injury rates for the offshore oil and gas industry – using a metric set by the regulator – were lower than other sectors such as manufacturing, construction, retail and education, says the report which details performance for last year.

 

The lost time injury frequency rate on the UKCS was below the European average and lower than Norway, Denmark and Ireland.

 

The category of dangerous occurrences – which captures oil and gas releases, fires or explosions, dropped objects and weather damage – was also down overall, recording almost a 30% fall between 2013 and 2015.

 

Within that category, the total number of oil and gas releases rose slightly by 9%, with the majority of these classified as minor, while major releases remained the same.

 

A rise in minor releases could partially reflect that more and more operators are using technology that helps detect the smallest of escapes. New reporting criteria also came into place in the second half of 2015 and now includes releases that were not deemed reportable under previous legislation.  Hydrocarbon releases are a constant focus for industry which is committed to bringing these down.

 

Industry has worked hard to reverse the increase in safety-critical maintenance backlog, reported in last year’s Oil & Gas UK Health & Safety Report. A reduction across all three categories of planned, corrective and deferred backlog is now reported.

 

Mick Borwell, health, safety and environment policy director at Oil & Gas UK, said: “I am pleased to say there were no reported fatalities on the UK Continental Shelf in 2015. Health and Safety Executive statistics in our report show that the industry non-fatal injury rate and the over-seven-day and specified injuries rates also decreased.

 

“That picture of personal safety improvement was echoed in the smaller annual benchmarking exercise that we carry out ourselves. We looked at 28 production operators and found a continuing downward trend in the average frequency of reportable injuries and dangerous occurrences.

 

“This favourable performance reflects well on the contributions from everyone involved – offshore and onshore – and their unstinting efforts to manage and control hazards and to continually improve safety performance.

 

“Safety critical maintenance has been – and will remain – a focus for industry. Reductions are now reported on backlog and we will be publishing guidance for industry on optimising maintenance shortly.

 

“Hydrocarbon releases are also a perpetual focus for industry. We need to understand more about the slight rise in mainly minor releases to help redouble our efforts on driving these right down.

 

“This is a testing time for the industry and our commitment to safety has at times been questioned.

 

“However, our report demonstrates that safe operations continue to be intrinsic to how we go about our activities on the UK Continental Shelf, regardless of the oil price.

 

“It shows that the UK sector is focusing in the right areas and overall is heading in the right direction. The report is also a reminder that there is no place for compromise or complacency and that safety must remain at the top of our agenda.”

 

The Oil & Gas UK Health & Safety Report and an accompanying infographic can be downloaded here.

 

ENDS

 

Notes to Editors:

Mick Borwell, health, safety and environment policy director with Oil & Gas UK, is available for interview.  To arrange, contact Communications Adviser Jennifer Phillips on 01224 577279 or [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.

 

 

 

 

 

Oil & Gas UK Welcomes the 29th Licensing Round

Mike Tholen – Upstream Policy Director at Oil & Gas UK, said:

“The industry is pleased to see the announcement by the Oil and Gas Authority (OGA) of the 29th Offshore Licensing Round from the UK Continental Shelf (UKCS).  This is the first licensing round to offer the Innovate Licence – a new more flexible approach developed by the industry in conjunction with the OGA which allows licensees more freedom in areas such as phasing and funding and staging of activity.

 

The industry is keen to encourage more innovative ways to boost exploration activity in the basin. The 1200 blocks on offer in the 29th licensing round include extensive new acreage, including the Rockall Trough and the Mid-North Sea High, identified by the industry as priority frontier areas where new data was acquired from the successful government-funded seismic shoot in 2015.

 

This 29th licensing round will help bring a fresh focus on exploration which remains vital to the future of the UKCS and a cornerstone of delivering MER (maximising economic recovery).  We must continue to work closely with the OGA and others in government to ensure that any discoveries are able to rapidly attract the investment funds needed for their development.”

More details about the 29th licensing round are available here

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