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The Chief Executive of the Oil and Gas Authority (OGA) will give a presentation and then take questions at next month’s industry conference organised by Oil & Gas UK.

 

Andy Samuel will be quizzed by Neil McCulloch, Chief Operating Officer at EnQuest and co-chair of Oil & Gas UK, on a range of topics including his thoughts on his role and the achievements of the Oil & Gas Authority.

 

The ‘Audience with’ session is part of The Oil and Gas Industry Conference taking place on June 6 at the Aberdeen Exhibition and Conference Centre, with Total E&P UK Limited as principal sponsor.

 

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “Industry wants a strong and well-resourced regulator to challenge and support our sector in helping deliver MER UK.  Our conference will be a great opportunity to hear from the OGA on the progress it is making to enable our sector achieve MER UK.”

 

More information on the conference – which is expected to attract hundreds of delegates from across the sector, as well as representatives from government and academia – can be found here.

 

ENDS

 

Notes to Editors:

Media is welcome to attend the conference. To arrange, contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected] or Lucy Gordon, Communications Adviser on 01224 577331/ [email protected] .

The announcement by BP – on behalf of co-venturers Shell and Siccar Point Energy – of first oil from the redeveloped Schiehallion Area, following completion of the multi-billion-pound Quad 204 project in the west of Shetland region,  has been welcomed by the industry’s trade body.

 

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “This is excellent news and another positive endorsement of the potential the UK Continental Shelf still offers with the right investment. It’s also extremely heartening to see one of the original explorers of the basin using new, ambitious approaches and pioneering technology to help lead a revival in production. As well as being a welcome boost for the hard pressed supply chain, the announcement from BP and co-venturers Shell and Siccar Point Energy, proves that our faith in the long term health of the basin is well founded. “

 

 ENDS

Notes to Editors

Issued by the Communication Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected].

Scotland’s First Minister will address industry leaders at a major oil and gas conference taking place at Aberdeen Exhibition and Conference Centre next month (June 6).

Nicola Sturgeon MSP is giving the keynote speech during the morning of the one-day event organised by Oil & Gas UK.

First Minister Nicola Sturgeon said: “The coming together of experts, industry leaders and government at the Oil & Gas UK Annual Conference is the perfect forum to build on the success and resilience the industry has demonstrated and map out the brightest possible future for it.I am delighted to attend, and look forward to a lively and interesting day.”

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “With so much political change in the past year, our delegates will be keen to hear the First Minister’s reflections on industry performance and how it should position itself for “Facing the Future”. We are very pleased to welcome the First Minister back to our annual conference.

“Confidence, albeit fragile, is slowly returning to our sector and companies are now in better shape to compete with basins around the world for the fresh investment we really need to see. However, the challenges for the basin, particularly for companies in the supply chain, are still considerable.

“It therefore remains vital that both the Scottish and UK Governments continue to work with our industry, in order to maximise the economic activity of the oil and gas industry to the benefit of all.”

This is Oil & Gas UK’s fourth annual conference and delegates will hear from regulators, industry leaders and specialists on a wide range of topics such as Vision 2035 – industry’s vision for the future and the sector’s role in the UK’s Industrial Strategy.  There will also be talks on investment stimulation, health, safety and the environment, supply chain resilience and efficiency.

ENDS

 

Notes to Editors:

More information about the Oil and Gas Industry Conference can be found here.

 

The conference is open to media.  For press enquiries please contact Jennifer Phillips on 01224 577279 [email protected] or Lucy Gordon on 01224 577331 [email protected].

The countdown is on to enter this year’s Offshore Safety Awards.

Jointly organised by Oil & Gas UK and Step Change in Safety, with Maersk Oil as principal sponsor, the annual safety awards celebrate individuals and companies who go beyond the call of duty to make the UK Continental Shelf one of the safest oil and gas basins to work in globally.

Individuals who are passionate about, and have spearheaded safety initiatives within their company, are invited to enter one of the awards’ six categories which, for the first time, includes a new category: the Operational Integrity Award, which recognises a company’s overall operational safety.

All entries must be submitted by Friday 26 May with the shortlist being published at the end of June. All finalists will have the opportunity to attend an interactive event and awards ceremony at the Aberdeen Exhibition and Conference Centre on Wednesday 23 August where they will pitch their safety initiative directly to attendees.

During the event attendees from across industry can visit the finalists’ stalls and vote live.

The categories include: Sharing and Learning; Workforce Engagement; Innovation in Safety; Safety Representative of the Year; Safety Leadership and Operational Integrity.

For full details on the categories and how to enter, please visit: www.offshoresafetyawards.com

ENDS

Notes to Editors:

Issued jointly by Step Change in Safety and Oil & Gas UK. Contact Communications Adviser Charlotte Westwell on [email protected] or 01224 577345 or Communications Manager Jennifer Phillips on  [email protected] or 01224 577279.

Six industry leaders representing both operator and major contractor companies will chair sessions to encourage debate and push progress on the sector’s priority issues at Oil & Gas UK’s ‘Facing the Future’ conference, sponsored by Total E&P UK Limited, at Aberdeen’s Exhibition and Conference Centre on June 6.

Stephen Marcos Jones, Oil & Gas UK’s director of business excellence, said:

“Topics at the top of the industry agenda are investment stimulation; supply chain resilience; industrial strategy; health, safety & environment; industry vision and efficiency. These are the areas which demand industry-wide attention and commitment to help us seize the exciting new opportunities that remain on the UK Continental Shelf to deliver a sustainable oil and gas sector fit for the future.

“We are delighted that our colleagues driving advances in the industry’s priority areas will be on hand to scrutinise both themselves and delegates to find solutions to current challenges as chairs of the conference sessions including:

  • Investment Stimulation – Phil Kirk, chief executive, Chrysaor
  • Industry Vision – Steve Phimister, vice president of Shell’s UK & Ireland upstream business unit
  • Industrial Strategy – Elisabeth Proust, managing director, Total E&P UK Limited
  • Health, Safety & Environment – Ray Riddoch, managing director and senior vice president Europe, Nexen Petroleum U.K. Limited
  • Efficiency, the new competitive advantage – Walter Thain, managing director, West, Engineering and Production Services, Petrofac.
  • Supply Chain Resilience – Craig Wiggins, senior vice president – Production Asset Services, East Africa Middle East, Aker Solutions

Elisabeth Proust, Managing Director of Total E&P UK said,

“This conference will be an opportunity to demonstrate the UK offshore industry’s vision for the long-term future.  Over the last three years the industry has significantly reduced its costs, demonstrated its resilience to a low price environment and is now improving its competitive edge through innovation. A positive long-term future also means a commitment to delivering clean, reliable and affordable energy for the UK. To achieve this vision, we have to mobilise our efforts across a wide spectrum from research, safety, efficient production to skills development. This year’s conference gives us the opportunity to explore together our actions to ensure a bright future.”

Mr Jones added: “In 2017 the UK oil and gas industry has demonstrated its ability to improve competitiveness through cost and efficiency gains. The conference is an ideal arena to build on this positive momentum, allowing people working across the industry to play their part in plans to secure a sustainable future for the sector in the years to come.”

Places can be booked here . In addition, exhibition and sponsorship opportunities are still available.

Ends

 

For further information, and for media places, please contact Lucy Gordon on 01224 577331 or [email protected] or Jennifer Phillips on 01224 5772796 or [email protected].

 

 

 

 

 

Opportunities for suppliers and clients to work collectively to improve oil and gas field production performance will be shared by Oil & Gas UK’s Production Efficiency Task Force at its next Share Fair Spotlight on May 4 in Aberdeen.

Stephen Marcos Jones, Oil & Gas UK’s director of business excellence, said:

“Production efficiency is about optimising operations on existing assets and ensuring UK Continental Shelf projects safely and efficiently achieve their full production potential. Actions taken to increase production efficiency are contributing to rising output with 2016 decline rates slowing to just three per cent in 2016 in comparison to 12 per cent in 2014.

“To build on that progress, a co-operative approach is crucial. The Share Fair Spotlight provides the ideal arena for both cascading good practice but also for learning from suppliers where their expertise, services and technology can play a role in that process”.

Compression systems, shutdowns and midstream infrastructure, including onshore terminals and pipelines, are the three key areas where the Production Efficiency Task Force sees the most potential for operators and their suppliers to work together to improve performance.

Leading figures driving the Task Force’s progress in these areas, including representatives from North Sea Midstream Partners; Repsol Sinopec Resources UK Limited; Maersk Oil North Sea UK; Total E&P UK, Nexen U.K. Limited and BP, will outline how adopting a collaborative approach will enable supplier and purchaser companies to minimise operations downtime and maximise oil and gas flow rates.

Places at the Share Fair Spotlight which takes place at Oil & Gas UK’s Aberdeen office can be booked here and further details are available on the Oil & Gas UK events web page.

The Production Efficiency Share Fair Spotlight is the second in the series of similar events planned for 2017 and future topics include Well Cost Reduction which will take place on August 24.

Strategies businesses deploy to shift from short-term survival to long-term sustainability will be explored by a diverse range of companies across the supply chain at Oil & Gas UK’s breakfast briefing in Aberdeen later this month. The Strengthening Resilience briefing sponsored by Deloitte, will take place at the Aberdeen Exhibition and Conference Centre on April 25.

Business experts delivering presentations at the event include Mike Backus, vice president operations UK, Nexen Petroleum U.K. Limited; Nick Clark, director, Consulting, at Deloitte; Barry MacLeod, managing director – UKCS of Bibby Offshore and Rob Anthony, senior vice president Purchasing and Planning and Control, Marine, Rolls-Royce plc.  The event also has the support of the Chartered Institute of Procurement and Supply (CIPS).

Stephen Marcos Jones, director of business excellence at Oil & Gas UK, said: “Adaptability and resilience are qualities that all companies require if they are to ride out the tough times. Our speakers will share insights on both the strategies they have developed within their own organisations, and expertise they have gathered from working with the industry including successful collaboration to win available business and diversification into other sectors.  We believe there are beneficial insights to be gained from discussing this topic from the different perspectives of an operator, major contractor, professional services firm and an eminent engineering company.”

Graham Hollis, office senior partner for Deloitte in Aberdeen, said: “Greater supply chain collaboration has an invaluable role to play in changing the shape of the North Sea industry for the better, and maximising economic recovery on the UKCS. While the latest Deloitte and Oil & Gas UK Upstream Supply Chain Collaboration Survey demonstrated that cost reduction is viewed as the main reason for collaborating, there are many other opportunities to be gained from enhancing and strengthening supply chain relationships.”

The breakfast briefing also provides the platform for announcing the results of the Young Oil and Gas Supply Chain Professional of the Year Award 2017, supported by CIPS. Awarded in recognition of the most outstanding people working in procurement, logistics and contract management, the initiative supports the industry’s drive to develop young supply chain practitioners and equip them with the skills to improve efficiency, build resilience and restore competitiveness to the UK Continental Shelf.

Phil Broughton, CIPS corporate relationships, said: “The industry has lived through some very difficult years, and opportunities to celebrate outstanding capabilities should be encouraged as we hand the mantle to younger professionals to develop the profession and enable the sector to reach new heights.”

Following a short networking break after the speakers’ presentations, there will be a panel session. Places at the breakfast can be booked here.

 

Mike Tholen
Upstream policy director

In response to the UK Extractive Industries Transparency Initiative (UK EITI) report released by the Department for Business, Energy & Industrial Strategy in Aberdeen today (March 31), Oil & Gas UK welcomed the demonstration of the oil and gas sector’s continued commitment to meet the EITI’s aim to improve transparency in the extractive industries.

Mike Tholen, Oil & Gas UK’s upstream policy director, said: “EITI is a global standard for the governance of a country’s oil, gas and mineral resources aimed at increasing transparency around information relating to tax payments, licences, contracts and production relating to resource extraction. It is supported by governments, industry and civil society organisations and provides the public with reliable information about their country’s natural resources, enabling them to hold the government and companies to account.

“The 2015 report shows that more than 95 per cent of the oil and gas companies meeting the scope of the EITI criteria contributed to this year’s report. This response represents a very substantial proportion of the taxes paid to HM Treasury by our sector across a number of payment streams and demonstrates a high level of participation in a voluntary initiative.

This report refers to 2015 and as such demonstrates how tough business conditions over the past two years have been, with a direct impact tax revenues to the U.K. Exchequer. We are confident that next year’s report covering 2016 will demonstrate the improvements in efficiency and performance that are now being seen across the basin. In the meantime, we will continue to work collaboratively with Governments to improve our competitiveness.  This sector continues to represents a vital part of the economy, providing highly skilled employment and a secure source of indigenous energy for decades to come.”

Click here to read the full report.

 

 

More than 90 delegates attended Oil & Gas UK’s Share Fair Spotlight on 28 March to discover how their products and services could play a part in contributing to the repair and maintenance needs of three major purchasing companies: Chrysaor, Nexen Petroleum U.K. Limited and Stork.

Stephen Marcos Jones
Business Excellence Director

Stephen Marcos Jones, director of business excellence at Oil & Gas UK, said:

“The major purchasing companies presenting at the event had the opportunity to meet an extremely broad cross section of companies ranging from specialist testing and inspection providers, equipment suppliers and engineering consultants to major contractors and operators. Positive feedback from attendees focused on the ample opportunities to meet potential clients face-to-face, the chance to discuss the informative presentations during regular networking breaks and the value of the event as a highly cost-effective way to engage in constructive business conversations targeted at driving innovation in repair and maintenance services.”

Chrysaor, currently in the process of establishing itself as a leading UK independent following its $3billion acquisition of some of Shell’s assets, provided delegates with insight into its forward plans. Providing delegates with valuable information about the timing of its transition into the role of operator, Chrysaor confirmed it will be looking to suppliers experienced in supporting mature assets for the answers it requires to extend the productive life of its new purchases.

As operator of the Buzzard, Golden Eagle and Scott platforms, Nexen Petroleum U.K. Limited is one of the largest producers on the UKCS. A key theme in its presentation focused on encouraging suppliers to continually engage with purchasers to develop cost-effective, innovative and sustainable solutions to repair and maintenance challenges.

Using a case study to describe its innovative approach to asset integrity inspection, assessment and repair, Stork shared with delegates how the company has adopted new strategies to improve efficiency noting that establishing the right levels of engagement, and open communication, between clients and suppliers are key priorities in delivering highly efficient operations.

Stephen Marcos Jones added: “The response to this event, the first Share Fair Spotlight of 2017, has been extremely positive. We launched these smaller scale topic-focused events last year and today we have seen both the return of past delegates as well as the welcome arrival of new participants. This is a clear demonstration that we’ve developed a format that is effective in helping purchasers and suppliers adopt co-operative business behaviours, embodied by the Industry Behaviours Charter, which can only bode well for driving sustainable solutions to support the UKCS in the future.”

Upcoming supply chain-focused events

25 April 2017 – Breakfast Briefing: Supply Chain Resilience – Aberdeen

4 May 2017 – Share Fair Spotlight Production Efficiency – Aberdeen

 

Supply chain companies with innovative solutions for delivering offshore repair and maintenance services more efficiently have an ideal opportunity to meet potential clients and find out about their forthcoming projects at Oil & Gas UK’s Share Fair Spotlight event on March 28 in Aberdeen.

The event, which takes place at Oil & Gas UK’s Market Street office follows the success last year of a series of sell-out Share Fair Spotlights introduced by the industry’s Efficiency Task Force (ETF) to promote co-operative behaviours across the sector to improve efficiency and restore competitiveness to the UK North Sea.

Stephen Marcos Jones, director of business excellence at Oil & Gas UK, said:

“We are delighted to have the participation of representatives from major purchasing companies including Chrysaor, Nexen Petroleum U.K. Limited and Stork, who will be on hand to help suppliers gain deeper insights into the expertise, services and goods they require for forthcoming offshore projects.

Maintenance and repair are key themes in the industry-wide drive to improve production efficiency, with companies focusing on new ways to increase the reliability and safety of installations on the UK Continental Shelf to ensure they are fit for purpose and can operate on demand to the required performance standard”.

The Repair and Maintenance Share Fair Spotlight is the first in the series of Share Fair Spotlight events planned for 2017 and future topics will feature Well Cost Reduction and Production Efficiency culminating with the annual flagship Share Fair event in Aberdeen which takes place on November 1.

 

 

Mike Tholen, Oil & Gas UK’s upstream policy director, said:

“We welcome today’s announcement by the Oil and Gas Authority that it is to award 25 licences to companies seeking to explore for oil and gas across frontier areas of the UK Continental Shelf (UKCS).

This 29th licensing round has the potential to open up new areas of the UKCS which have been under explored until now and the three firm commitment wells offered will help test the potential opportunities available. It is clear the flexible approach the Innovate Licence offers has enabled three new companies with different business models and fresh ideas to enter the UK in this round – a process which has gained greater impetus from the availability of new seismic data drawn from across Rockall and Mid-North Sea High, funded by the government two years ago.

Frontier exploration is a long game which will take time to deliver new oil and gas resources.  Fiscal stability to drive investment in exploration will be a prerequisite in the years to come, and the industry  will continue to build on the competitive improvements achieved over the last two years to make this a success.“

 

 

Relevant measures announced today for oil and gas include:

  • A formal discussion document on tax issues relating to late-life assets (i.e. transferable tax history) to be published on 20 March.
  • A new expert panel to be established to help scrutinise the issues over the summer.
  • The government has today laid in the House of Commons a Statutory Instrument extending the definition of investment expenditure to certain categories of operating and leasing expenditure. This will encourage further investment on the UK Continental Shelf and delivers the government’s commitment at Summer Budget 2015 to broaden the scope of the Investment and Cluster Area allowances to include expenditure on additional activities. The economic benefits of the extension are backdated, so companies can generate the allowance for any allowable expenditure since 8 October 2015.

 

Deirdre Michie, Chief Executive of Oil & Gas UK, responded to today’s Budget saying: “We welcome the Chancellor’s response to our call to resolve the tax issues slowing down asset transfers and his recognition of the need to maximise recovery of remaining UK oil and gas reserves.

Deirdre Michie
Chief Executive

“The publication of the statutory instrument giving further details of how the existing Investment Allowance will be extended to operating expenditure is also good news and we look forward to reading the detail.

“The UK Continental Shelf continues to offer an attractive range of opportunities and it is vital that we draw in a diversity of investors to ensure these are realised. Enabling assets to transfer when appropriate to new owners is key to this strategy. As the Chancellor has indicated, the tax regime has presented some significant barriers to asset trading, which we have been working on with Treasury for a number of years. These must be addressed as a matter of urgency.

“The current tax treatment of decommissioning makes it harder for existing owners to sell mature assets and leads to lengthy, complicated deals which slow down activity in the basin. Recent deals highlight the opportunities in the basin but more transactions could be achieved if this issue is resolved.

“We look forward to the formal discussion paper due on 20th of March on the case for allowing transfer of tax history between buyer and seller. We are also ready to play our part on the new expert panel that will consider the issues. We are confident that this will identify the shortcomings of the tax regime and enable a swift solution that will unblock asset deals and support maximising economic recovery.

“Close collaboration with Government and industry on fiscal matters sends a clear message to investors that the UKCS is a great place to do business.  Confidence in the fiscal regime through Treasury’s “Driving Investment plan” underpins our competitiveness. Industry is committed to ensure that the UKCS provides a globally competitive business environment in which our highly skilled supply chain can thrive.  The industry is slowly emerging from a very challenging period and it is crucial that the North Sea is successful in attracting investment in the near-term to sustain production and stimulate new activity.”

Deirdre Michie, chief executive, Oil & Gas UK, supported today’s (February 10) launch of the Oil and Gas Technology Centre in Aberdeen,

she said:

 

Deirdre Michie
Chief Executive

“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:

Deirdre Michie
Chief Executive

“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:

Deirdre Michie
Chief Executive

“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/

 

‘Audience with’ OGA head at oil and gas conference

The Chief Executive of the Oil and Gas Authority (OGA) will give a presentation and then take questions at next month’s industry conference organised by Oil & Gas UK.

 

Andy Samuel will be quizzed by Neil McCulloch, Chief Operating Officer at EnQuest and co-chair of Oil & Gas UK, on a range of topics including his thoughts on his role and the achievements of the Oil & Gas Authority.

 

The ‘Audience with’ session is part of The Oil and Gas Industry Conference taking place on June 6 at the Aberdeen Exhibition and Conference Centre, with Total E&P UK Limited as principal sponsor.

 

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “Industry wants a strong and well-resourced regulator to challenge and support our sector in helping deliver MER UK.  Our conference will be a great opportunity to hear from the OGA on the progress it is making to enable our sector achieve MER UK.”

 

More information on the conference – which is expected to attract hundreds of delegates from across the sector, as well as representatives from government and academia – can be found here.

 

ENDS

 

Notes to Editors:

Media is welcome to attend the conference. To arrange, contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected] or Lucy Gordon, Communications Adviser on 01224 577331/ [email protected] .

First oil from Quad 204 welcomed by Oil & Gas UK

The announcement by BP – on behalf of co-venturers Shell and Siccar Point Energy – of first oil from the redeveloped Schiehallion Area, following completion of the multi-billion-pound Quad 204 project in the west of Shetland region,  has been welcomed by the industry’s trade body.

 

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “This is excellent news and another positive endorsement of the potential the UK Continental Shelf still offers with the right investment. It’s also extremely heartening to see one of the original explorers of the basin using new, ambitious approaches and pioneering technology to help lead a revival in production. As well as being a welcome boost for the hard pressed supply chain, the announcement from BP and co-venturers Shell and Siccar Point Energy, proves that our faith in the long term health of the basin is well founded. “

 

 ENDS

Notes to Editors

Issued by the Communication Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected].

First Minister to speak at 2017 Oil and Gas Industry Conference

Scotland’s First Minister will address industry leaders at a major oil and gas conference taking place at Aberdeen Exhibition and Conference Centre next month (June 6).

Nicola Sturgeon MSP is giving the keynote speech during the morning of the one-day event organised by Oil & Gas UK.

First Minister Nicola Sturgeon said: “The coming together of experts, industry leaders and government at the Oil & Gas UK Annual Conference is the perfect forum to build on the success and resilience the industry has demonstrated and map out the brightest possible future for it.I am delighted to attend, and look forward to a lively and interesting day.”

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “With so much political change in the past year, our delegates will be keen to hear the First Minister’s reflections on industry performance and how it should position itself for “Facing the Future”. We are very pleased to welcome the First Minister back to our annual conference.

“Confidence, albeit fragile, is slowly returning to our sector and companies are now in better shape to compete with basins around the world for the fresh investment we really need to see. However, the challenges for the basin, particularly for companies in the supply chain, are still considerable.

“It therefore remains vital that both the Scottish and UK Governments continue to work with our industry, in order to maximise the economic activity of the oil and gas industry to the benefit of all.”

This is Oil & Gas UK’s fourth annual conference and delegates will hear from regulators, industry leaders and specialists on a wide range of topics such as Vision 2035 – industry’s vision for the future and the sector’s role in the UK’s Industrial Strategy.  There will also be talks on investment stimulation, health, safety and the environment, supply chain resilience and efficiency.

ENDS

 

Notes to Editors:

More information about the Oil and Gas Industry Conference can be found here.

 

The conference is open to media.  For press enquiries please contact Jennifer Phillips on 01224 577279 [email protected] or Lucy Gordon on 01224 577331 [email protected].

Offshore Safety Awards deadline approaching

The countdown is on to enter this year’s Offshore Safety Awards.

Jointly organised by Oil & Gas UK and Step Change in Safety, with Maersk Oil as principal sponsor, the annual safety awards celebrate individuals and companies who go beyond the call of duty to make the UK Continental Shelf one of the safest oil and gas basins to work in globally.

Individuals who are passionate about, and have spearheaded safety initiatives within their company, are invited to enter one of the awards’ six categories which, for the first time, includes a new category: the Operational Integrity Award, which recognises a company’s overall operational safety.

All entries must be submitted by Friday 26 May with the shortlist being published at the end of June. All finalists will have the opportunity to attend an interactive event and awards ceremony at the Aberdeen Exhibition and Conference Centre on Wednesday 23 August where they will pitch their safety initiative directly to attendees.

During the event attendees from across industry can visit the finalists’ stalls and vote live.

The categories include: Sharing and Learning; Workforce Engagement; Innovation in Safety; Safety Representative of the Year; Safety Leadership and Operational Integrity.

For full details on the categories and how to enter, please visit: www.offshoresafetyawards.com

ENDS

Notes to Editors:

Issued jointly by Step Change in Safety and Oil & Gas UK. Contact Communications Adviser Charlotte Westwell on [email protected] or 01224 577345 or Communications Manager Jennifer Phillips on  [email protected] or 01224 577279.

Six leading industry figures to chair oil and gas conference sessions

Six industry leaders representing both operator and major contractor companies will chair sessions to encourage debate and push progress on the sector’s priority issues at Oil & Gas UK’s ‘Facing the Future’ conference, sponsored by Total E&P UK Limited, at Aberdeen’s Exhibition and Conference Centre on June 6.

Stephen Marcos Jones, Oil & Gas UK’s director of business excellence, said:

“Topics at the top of the industry agenda are investment stimulation; supply chain resilience; industrial strategy; health, safety & environment; industry vision and efficiency. These are the areas which demand industry-wide attention and commitment to help us seize the exciting new opportunities that remain on the UK Continental Shelf to deliver a sustainable oil and gas sector fit for the future.

“We are delighted that our colleagues driving advances in the industry’s priority areas will be on hand to scrutinise both themselves and delegates to find solutions to current challenges as chairs of the conference sessions including:

  • Investment Stimulation – Phil Kirk, chief executive, Chrysaor
  • Industry Vision – Steve Phimister, vice president of Shell’s UK & Ireland upstream business unit
  • Industrial Strategy – Elisabeth Proust, managing director, Total E&P UK Limited
  • Health, Safety & Environment – Ray Riddoch, managing director and senior vice president Europe, Nexen Petroleum U.K. Limited
  • Efficiency, the new competitive advantage – Walter Thain, managing director, West, Engineering and Production Services, Petrofac.
  • Supply Chain Resilience – Craig Wiggins, senior vice president – Production Asset Services, East Africa Middle East, Aker Solutions

Elisabeth Proust, Managing Director of Total E&P UK said,

“This conference will be an opportunity to demonstrate the UK offshore industry’s vision for the long-term future.  Over the last three years the industry has significantly reduced its costs, demonstrated its resilience to a low price environment and is now improving its competitive edge through innovation. A positive long-term future also means a commitment to delivering clean, reliable and affordable energy for the UK. To achieve this vision, we have to mobilise our efforts across a wide spectrum from research, safety, efficient production to skills development. This year’s conference gives us the opportunity to explore together our actions to ensure a bright future.”

Mr Jones added: “In 2017 the UK oil and gas industry has demonstrated its ability to improve competitiveness through cost and efficiency gains. The conference is an ideal arena to build on this positive momentum, allowing people working across the industry to play their part in plans to secure a sustainable future for the sector in the years to come.”

Places can be booked here . In addition, exhibition and sponsorship opportunities are still available.

Ends

 

For further information, and for media places, please contact Lucy Gordon on 01224 577331 or [email protected] or Jennifer Phillips on 01224 5772796 or [email protected].

 

 

 

 

 

Share Fair Spotlight to Focus Attention of Suppliers and Clients on Production Efficiency

Opportunities for suppliers and clients to work collectively to improve oil and gas field production performance will be shared by Oil & Gas UK’s Production Efficiency Task Force at its next Share Fair Spotlight on May 4 in Aberdeen.

Stephen Marcos Jones, Oil & Gas UK’s director of business excellence, said:

“Production efficiency is about optimising operations on existing assets and ensuring UK Continental Shelf projects safely and efficiently achieve their full production potential. Actions taken to increase production efficiency are contributing to rising output with 2016 decline rates slowing to just three per cent in 2016 in comparison to 12 per cent in 2014.

“To build on that progress, a co-operative approach is crucial. The Share Fair Spotlight provides the ideal arena for both cascading good practice but also for learning from suppliers where their expertise, services and technology can play a role in that process”.

Compression systems, shutdowns and midstream infrastructure, including onshore terminals and pipelines, are the three key areas where the Production Efficiency Task Force sees the most potential for operators and their suppliers to work together to improve performance.

Leading figures driving the Task Force’s progress in these areas, including representatives from North Sea Midstream Partners; Repsol Sinopec Resources UK Limited; Maersk Oil North Sea UK; Total E&P UK, Nexen U.K. Limited and BP, will outline how adopting a collaborative approach will enable supplier and purchaser companies to minimise operations downtime and maximise oil and gas flow rates.

Places at the Share Fair Spotlight which takes place at Oil & Gas UK’s Aberdeen office can be booked here and further details are available on the Oil & Gas UK events web page.

The Production Efficiency Share Fair Spotlight is the second in the series of similar events planned for 2017 and future topics include Well Cost Reduction which will take place on August 24.

Leading business figures to highlight supply chain resilience strategies at breakfast briefing

Strategies businesses deploy to shift from short-term survival to long-term sustainability will be explored by a diverse range of companies across the supply chain at Oil & Gas UK’s breakfast briefing in Aberdeen later this month. The Strengthening Resilience briefing sponsored by Deloitte, will take place at the Aberdeen Exhibition and Conference Centre on April 25.

Business experts delivering presentations at the event include Mike Backus, vice president operations UK, Nexen Petroleum U.K. Limited; Nick Clark, director, Consulting, at Deloitte; Barry MacLeod, managing director – UKCS of Bibby Offshore and Rob Anthony, senior vice president Purchasing and Planning and Control, Marine, Rolls-Royce plc.  The event also has the support of the Chartered Institute of Procurement and Supply (CIPS).

Stephen Marcos Jones, director of business excellence at Oil & Gas UK, said: “Adaptability and resilience are qualities that all companies require if they are to ride out the tough times. Our speakers will share insights on both the strategies they have developed within their own organisations, and expertise they have gathered from working with the industry including successful collaboration to win available business and diversification into other sectors.  We believe there are beneficial insights to be gained from discussing this topic from the different perspectives of an operator, major contractor, professional services firm and an eminent engineering company.”

Graham Hollis, office senior partner for Deloitte in Aberdeen, said: “Greater supply chain collaboration has an invaluable role to play in changing the shape of the North Sea industry for the better, and maximising economic recovery on the UKCS. While the latest Deloitte and Oil & Gas UK Upstream Supply Chain Collaboration Survey demonstrated that cost reduction is viewed as the main reason for collaborating, there are many other opportunities to be gained from enhancing and strengthening supply chain relationships.”

The breakfast briefing also provides the platform for announcing the results of the Young Oil and Gas Supply Chain Professional of the Year Award 2017, supported by CIPS. Awarded in recognition of the most outstanding people working in procurement, logistics and contract management, the initiative supports the industry’s drive to develop young supply chain practitioners and equip them with the skills to improve efficiency, build resilience and restore competitiveness to the UK Continental Shelf.

Phil Broughton, CIPS corporate relationships, said: “The industry has lived through some very difficult years, and opportunities to celebrate outstanding capabilities should be encouraged as we hand the mantle to younger professionals to develop the profession and enable the sector to reach new heights.”

Following a short networking break after the speakers’ presentations, there will be a panel session. Places at the breakfast can be booked here.

Extractive industries report demonstrates oil and gas sector’s commitment to transparency

 

Mike Tholen
Upstream policy director

In response to the UK Extractive Industries Transparency Initiative (UK EITI) report released by the Department for Business, Energy & Industrial Strategy in Aberdeen today (March 31), Oil & Gas UK welcomed the demonstration of the oil and gas sector’s continued commitment to meet the EITI’s aim to improve transparency in the extractive industries.

Mike Tholen, Oil & Gas UK’s upstream policy director, said: “EITI is a global standard for the governance of a country’s oil, gas and mineral resources aimed at increasing transparency around information relating to tax payments, licences, contracts and production relating to resource extraction. It is supported by governments, industry and civil society organisations and provides the public with reliable information about their country’s natural resources, enabling them to hold the government and companies to account.

“The 2015 report shows that more than 95 per cent of the oil and gas companies meeting the scope of the EITI criteria contributed to this year’s report. This response represents a very substantial proportion of the taxes paid to HM Treasury by our sector across a number of payment streams and demonstrates a high level of participation in a voluntary initiative.

This report refers to 2015 and as such demonstrates how tough business conditions over the past two years have been, with a direct impact tax revenues to the U.K. Exchequer. We are confident that next year’s report covering 2016 will demonstrate the improvements in efficiency and performance that are now being seen across the basin. In the meantime, we will continue to work collaboratively with Governments to improve our competitiveness.  This sector continues to represents a vital part of the economy, providing highly skilled employment and a secure source of indigenous energy for decades to come.”

Click here to read the full report.

 

Impressive turnout at Share Fair Spotlight demonstrates supply chain thirst for business insights

 

More than 90 delegates attended Oil & Gas UK’s Share Fair Spotlight on 28 March to discover how their products and services could play a part in contributing to the repair and maintenance needs of three major purchasing companies: Chrysaor, Nexen Petroleum U.K. Limited and Stork.

Stephen Marcos Jones
Business Excellence Director

Stephen Marcos Jones, director of business excellence at Oil & Gas UK, said:

“The major purchasing companies presenting at the event had the opportunity to meet an extremely broad cross section of companies ranging from specialist testing and inspection providers, equipment suppliers and engineering consultants to major contractors and operators. Positive feedback from attendees focused on the ample opportunities to meet potential clients face-to-face, the chance to discuss the informative presentations during regular networking breaks and the value of the event as a highly cost-effective way to engage in constructive business conversations targeted at driving innovation in repair and maintenance services.”

Chrysaor, currently in the process of establishing itself as a leading UK independent following its $3billion acquisition of some of Shell’s assets, provided delegates with insight into its forward plans. Providing delegates with valuable information about the timing of its transition into the role of operator, Chrysaor confirmed it will be looking to suppliers experienced in supporting mature assets for the answers it requires to extend the productive life of its new purchases.

As operator of the Buzzard, Golden Eagle and Scott platforms, Nexen Petroleum U.K. Limited is one of the largest producers on the UKCS. A key theme in its presentation focused on encouraging suppliers to continually engage with purchasers to develop cost-effective, innovative and sustainable solutions to repair and maintenance challenges.

Using a case study to describe its innovative approach to asset integrity inspection, assessment and repair, Stork shared with delegates how the company has adopted new strategies to improve efficiency noting that establishing the right levels of engagement, and open communication, between clients and suppliers are key priorities in delivering highly efficient operations.

Stephen Marcos Jones added: “The response to this event, the first Share Fair Spotlight of 2017, has been extremely positive. We launched these smaller scale topic-focused events last year and today we have seen both the return of past delegates as well as the welcome arrival of new participants. This is a clear demonstration that we’ve developed a format that is effective in helping purchasers and suppliers adopt co-operative business behaviours, embodied by the Industry Behaviours Charter, which can only bode well for driving sustainable solutions to support the UKCS in the future.”

Upcoming supply chain-focused events

25 April 2017 – Breakfast Briefing: Supply Chain Resilience – Aberdeen

4 May 2017 – Share Fair Spotlight Production Efficiency – Aberdeen

 

Industry demand for repair & maintenance services to be revealed at Share Fair Spotlight

Supply chain companies with innovative solutions for delivering offshore repair and maintenance services more efficiently have an ideal opportunity to meet potential clients and find out about their forthcoming projects at Oil & Gas UK’s Share Fair Spotlight event on March 28 in Aberdeen.

The event, which takes place at Oil & Gas UK’s Market Street office follows the success last year of a series of sell-out Share Fair Spotlights introduced by the industry’s Efficiency Task Force (ETF) to promote co-operative behaviours across the sector to improve efficiency and restore competitiveness to the UK North Sea.

Stephen Marcos Jones, director of business excellence at Oil & Gas UK, said:

“We are delighted to have the participation of representatives from major purchasing companies including Chrysaor, Nexen Petroleum U.K. Limited and Stork, who will be on hand to help suppliers gain deeper insights into the expertise, services and goods they require for forthcoming offshore projects.

Maintenance and repair are key themes in the industry-wide drive to improve production efficiency, with companies focusing on new ways to increase the reliability and safety of installations on the UK Continental Shelf to ensure they are fit for purpose and can operate on demand to the required performance standard”.

The Repair and Maintenance Share Fair Spotlight is the first in the series of Share Fair Spotlight events planned for 2017 and future topics will feature Well Cost Reduction and Production Efficiency culminating with the annual flagship Share Fair event in Aberdeen which takes place on November 1.

 

29th licensing round has the potential to open up new areas of UKCS

 

Mike Tholen, Oil & Gas UK’s upstream policy director, said:

“We welcome today’s announcement by the Oil and Gas Authority that it is to award 25 licences to companies seeking to explore for oil and gas across frontier areas of the UK Continental Shelf (UKCS).

This 29th licensing round has the potential to open up new areas of the UKCS which have been under explored until now and the three firm commitment wells offered will help test the potential opportunities available. It is clear the flexible approach the Innovate Licence offers has enabled three new companies with different business models and fresh ideas to enter the UK in this round – a process which has gained greater impetus from the availability of new seismic data drawn from across Rockall and Mid-North Sea High, funded by the government two years ago.

Frontier exploration is a long game which will take time to deliver new oil and gas resources.  Fiscal stability to drive investment in exploration will be a prerequisite in the years to come, and the industry  will continue to build on the competitive improvements achieved over the last two years to make this a success.“

 

Chancellor responds positively to Oil & Gas UK Budget asks

 

Relevant measures announced today for oil and gas include:

  • A formal discussion document on tax issues relating to late-life assets (i.e. transferable tax history) to be published on 20 March.
  • A new expert panel to be established to help scrutinise the issues over the summer.
  • The government has today laid in the House of Commons a Statutory Instrument extending the definition of investment expenditure to certain categories of operating and leasing expenditure. This will encourage further investment on the UK Continental Shelf and delivers the government’s commitment at Summer Budget 2015 to broaden the scope of the Investment and Cluster Area allowances to include expenditure on additional activities. The economic benefits of the extension are backdated, so companies can generate the allowance for any allowable expenditure since 8 October 2015.

 

Deirdre Michie, Chief Executive of Oil & Gas UK, responded to today’s Budget saying: “We welcome the Chancellor’s response to our call to resolve the tax issues slowing down asset transfers and his recognition of the need to maximise recovery of remaining UK oil and gas reserves.

Deirdre Michie
Chief Executive

“The publication of the statutory instrument giving further details of how the existing Investment Allowance will be extended to operating expenditure is also good news and we look forward to reading the detail.

“The UK Continental Shelf continues to offer an attractive range of opportunities and it is vital that we draw in a diversity of investors to ensure these are realised. Enabling assets to transfer when appropriate to new owners is key to this strategy. As the Chancellor has indicated, the tax regime has presented some significant barriers to asset trading, which we have been working on with Treasury for a number of years. These must be addressed as a matter of urgency.

“The current tax treatment of decommissioning makes it harder for existing owners to sell mature assets and leads to lengthy, complicated deals which slow down activity in the basin. Recent deals highlight the opportunities in the basin but more transactions could be achieved if this issue is resolved.

“We look forward to the formal discussion paper due on 20th of March on the case for allowing transfer of tax history between buyer and seller. We are also ready to play our part on the new expert panel that will consider the issues. We are confident that this will identify the shortcomings of the tax regime and enable a swift solution that will unblock asset deals and support maximising economic recovery.

“Close collaboration with Government and industry on fiscal matters sends a clear message to investors that the UKCS is a great place to do business.  Confidence in the fiscal regime through Treasury’s “Driving Investment plan” underpins our competitiveness. Industry is committed to ensure that the UKCS provides a globally competitive business environment in which our highly skilled supply chain can thrive.  The industry is slowly emerging from a very challenging period and it is crucial that the North Sea is successful in attracting investment in the near-term to sustain production and stimulate new activity.”

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:

 

Deirdre Michie
Chief Executive

“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:

Deirdre Michie
Chief Executive

“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:

Deirdre Michie
Chief Executive

“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/

 

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