A new report which provides an update on the environmental landscape of the UK offshore oil and gas industry to the end of 2017 has been published by Oil & Gas UK today (6 December).

The 2018 Environment Report, which analyses and interprets data gathered and monitored by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), considers performance across a range of areas including emissions to atmosphere, chemical discharge, waste disposal and produced water.

The insight also provides a summary of activities undertaken by Oil & Gas UK groups over the last year to support the development of new environmental legislation, to share lessons learnt and good practice, and to improve industry environmental management.

Key findings include:

  • 2017 saw a reduction of 3 per cent in the volume of produced water discharged to sea during oil and gas production compared to 2016
  • The total amount of dispersed oil contained in the produced water discharged rose slightly to 2,140 tonnes.
  • Reinjection of produced water increased by 10 percent on the year and is at its highest recorded level.
  • Greenhouse Gas Emissions per installation were lower in 2017 than in 2016.
  • Industry’s greenhouse gas emissions contribute around 3 per cent of the total UK emissions, the same proportion as in 2016.
  • Over the same period carbon dioxide (CO2) emissions from the UK Continental Shelf (UKCS) saw an increase from 13.1 million tonnes in 2016 to 14.2 million tonnes in 2017, although the sector’s long-term trend for CO2 emissions continues to fall.
  • Gas venting saw an increase. Nearly one-third of the total was due to incombustible gas emissions where the CO2 content was too high to enable ignition which had to be vented rather than flared.
  • There were 451 accidental releases of oil and chemicals, fewer than in 2016, which amounted to around 279 tonnes reaching the marine environment.
  • Of these, 253 were accidental releases of approximately 23 tonnes of oil, representing 0.00003 per cent of total production
  • The majority of accidental chemical releases (96 per cent) are labelled as low hazard or PLONOR chemicals.

Commenting on the report, launched with industry this morning, Oil & Gas UK Environment Manager Katie Abbott said:

“The UK Continental Shelf is a mature and complex basin, and the challenges that accompany the production of hydrocarbons here mean that the data outlined in this report are equally complex.

“While innovative technology is contributing to environmental performance, through enhanced oil recovery which includes produced water re-injection, and the reduction in associated gas flared, challenges remain in other aspects.

“We continue to appraise longer term trends to identify learnings from accidental releases including the low frequency, high mass incidents.

“As a major hazard and heavily regulated industry, continued engagement with regulators, government and the sector is key in supporting efforts to reduce environmental risk, ensuring continued safe operation.”

“With that in mind, this annual report provides an opportunity for industry to review environmental performance indicators, reflect on the compliant practices and focus on areas where there are opportunities to drive further improvements.”

The leading representative body for the UK’s offshore oil and gas industry has hailed news that Apache Corporation has reached first oil in just eight months from its Garten field as remarkable.

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

“To have delivered a project from discovery to first oil in just eight months shows the remarkable agility of the UK Continental Shelf as it continues to become more competitive.

“Apache have shown what can be achieved through a constructive and collaborative relationship with its supply chain. This is great news for everyone involved in the project, and to the wider industry who will be keen to share in the lessons learned. 

“It is further proof that the UK’s offshore oil and gas industry is staying the course on the road to Vision 2035.” 

 

The results of a survey studying collaboration across the UK’s oil and gas industry in efforts to unlock efficiencies will be published this month – crucial to extending the life of the basin and achieving Vision 2035.

Jointly led by Oil & Gas UK and Deloitte, the Supply Chain Collaboration Survey explores the motives and effectiveness of collaboration between supply chain companies and operators.

The report will be unveiled at a launch event hosted by Oil & Gas UK in Aberdeen on Wednesday, December 12. The 2017 report saw the UK’s offshore oil and gas industry clear the second hurdle in embracing effective collaboration, increasing its score to 7.1 out of 10 – up from 6.6 in 2016 – on the Collaboration Index, which measures collaborative practices.

The event will be chaired by Oil & Gas UK’s Supply Chain and HSE Director, Matt Abraham, who will be joined by Nick Clark, director at Deloitte and Dr Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager.

Speaking ahead of the event, Dr Mariesha Jaffray said:

“Collaboration was identified by the Wood Review as a fundamental behaviour in securing the successful future of the UK Continental Shelf (UKCS). Our work in the pioneering Efficiency Task Force has shown that industry has embraced this approach and is already reaping the rewards of this cultural change.

“This survey provides us with a further opportunity to identify areas we can build on and improve in our efforts to maximise economic recovery from the UK Continental Shelf, and to ultimately realise Vision 2035.”

Scott McGinigal, Vice President Business Services at Nexen and Scott Cameron, Business Unit Director at Subsea 7, will also discuss key case studies at the event which will be followed by a panel discussion.

Graham Hollis, senior partner for Deloitte in Aberdeen, said: “The Supply Chain Collaboration Survey – which seeks the views of over 150 operators and suppliers across the UK Continental Shelf – is a key barometer of what is happening in our sector. As part of the survey, the Collaboration Index measures the effectiveness of companies as partners in collaboration.

“Last year we saw real progress as our survey returned a 7.1 Collaboration Index score, the highest score to date. It will be interesting to see how the findings pan out this year as oil prices have gone up and businesses are doing better – will collaboration still be a priority?”

Oil & Gas UK has said it is encouraged by the latest Oil and Gas Survey issued by Aberdeen and Grampian Chamber of Commerce today, which reveals industry recruitment is on the rise as 33 per cent of firms look to increase their UK workforce by 10 per cent or more in 2019.

The leading representative body for the sector highlighted the need for the industry to continue to persevere to maintain its attractiveness as the report also highlights a potential skills gap.

Commenting on the findings, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“We do now see a more positive mood in the sector, with more projects approved this year than in the last three years combined.

 “However, as we continue to emerge from one of the toughest downturns in our history, industry remains focused on maintaining its attractiveness in a competitive global market.

 “As the report shows, the UK offshore oil and gas industry will continue to support highly-skilled roles for many years to come. Our strategy under Vision 2035 aims to add a generation of productive life to the basin, whilst doubling the supply chain’s global footprint.

“To achieve this, we need to continue to attract investment by ensuring strong competitive conditions for the basin, whilst expanding our reach through transporting the industry’s vast range of skills and talent across the globe.”

The leading representative body for the UK’s offshore oil and gas industry has championed its skills and capabilities in response to a highly anticipated report from the UK Government outlining its plans to support carbon capture usage and storage.

Energy Minister Claire Perry today published an action plan to deliver the UK’s first carbon capture usage and storage project by the mid-2020s. The plan, outlined by the Minister at a global summit in Edinburgh, highlights the critical role of the sector in enabling CCUS technologies to be deployed at scale by the 2030s.

The pathway includes plans to work with industry and other bodies to identify existing oil and gas infrastructure which could be re-used to support the development of CCUS in the UK.

Commenting, Oil & Gas UK Chief Executive Deirdre Michie said:

“The UK’s offshore oil and gas industry stands ready to support the development of carbon capture, usage and storage. Our supply chain is uniquely positioned to deliver cost effective, competently engineered solutions for CCUS.

“As the UK Government’s plan notes, our world-leading sector enjoys a highly skilled and experienced workforce, established infrastructure and existing support for the work of the task force. Coupled with our ambition to meet more of the UK’s energy demands from indigenous resources over the longer term, outlined in Vision 2035, we recognise the important role we have to play in moves towards a lower carbon economy.

“It’s another example of how, at every stage of the UK’s energy journey, our pioneering industry continues to transform and adapt.”

Commenting, Oil & Gas UK Chief Executive Deirdre Michie said:

“We welcome the further detail provided to industry through the draft withdrawal agreement. This is an extensive legal document which we will now analyse and review in full with our membership.

“Our focus remains on securing the best outcome for the UK’s offshore oil and gas industry. That is, protecting the offshore industry from future EU regulatory changes, minimal friction between the UK and EU, maintaining a strong voice in Europe, protecting energy trading and the internal energy market and protecting our licence to operate.

“We will continue to put forward these priorities in our discussions with the Government in the coming days.”

Kay Heidenreich of Oil & Gas UK officially launches her book at an event in Aberdeen on Friday, November 2

Over 120 people from across the UK’s oil and gas industry gathered in Aberdeen today to mark the launch of a new book which aims to inspire the next generation of female talent.

Author and Oil & Gas UK operations optimisation manager, Katy Heidenreich, gave an overview of the book before taking part in a panel discussion with leading diversity and inclusion influencers.

The Oil Industry’s Best Kept Secret – A book full of inspiration and advice” serves as a practical handbook to people thinking about their careers, offering advice and case studies collated from interviews with over 40 women working in the sector.

Speaking after the launch, Katy Heidenreich said:

“I’m very grateful for the warm reception the book received from industry colleagues today. It confirms that we have a lot to be hopeful for, with so many passionate and ambitious people willing to do everything it takes to drive meaningful change.

“My message to everyone today, and in my book, is that we are all role models when it comes to promoting our industry as a great place to work. We need to get out there, tell our stories and inspire the next generation of female talent so that we can achieve a balanced workforce which reflects society.

“This is the beginning of a very exciting journey. I look forward to hearing and meeting more of the inspirational people in our industry that my book is able to offer a brief glimpse on.”

 

The finalists and winners of the Oil & Gas UK Awards 2018 celebrate

 

An inspirational graduate whose safety initiatives have led the way for critical emergency response plans offshore, and an industry-leading project which championed collaboration were among those who secured accolades last night (Thursday, November 2) at the Oil & Gas UK Awards 2018.

More than 500 people from across the industry gathered to celebrate pioneering individuals and companies for their contributions in business innovation, workforce engagement and decommissioning.

Hosted by Channel 4 news presenter Cathy Newman, the annual ceremony held at the AECC in Aberdeen recognises outstanding performance from companies, as well as high-performing individuals, for their unique, positive and notable contributions to the sector.

Praising the winners, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“Our awards are a highlight of the industry calendar and are an opportunity to celebrate the achievements of the people in our pioneering sector, which continues to adapt, improve and build its strength even in the face of the tough challenges in recent years.

“Hearing about the remarkable achievements by companies and individuals reinforces the bright future which lies ahead for the UK’s offshore oil and gas industry.

“Many congratulations to all winners and those who were shortlisted.  Our judges had a tough job sifting through really great nominations, all of which serve as a reminder of the dedication, perseverance and continued hard work of those working in our sector.”

Sponsored by Shell UK Limited, who this year celebrate 50 years of operation in the UKCS, the evening also included a speech from the company’s Vice President of Upstream, Steve Phimister.

The winners across the nine categories are as follows:

The Oil & Gas UK Young Professional of the Year Award 2018

Apprentice of the Year (sponsored by OPITO)

Ryan Fernando, Aker Solutions

Graduate of the Year (sponsored by ECITB)

Gareth McQueen, Shell U.K. Limited

The Oil & Gas UK Mentor of the Year Award 2018

Giuseppe Tizzano, BP

The Oil & Gas UK Diversity and Inclusiveness Award 2018 (sponsored by Spirit Energy)

BP North Sea BRGs

The Oil & Gas UK Workforce Engagement Award 2018 (sponsored by Fairfield Energy Limited)

Shell U.K. Limited

The Oil & Gas UK Business Innovation Award 2018

SME – AIS Training

Large Enterprise – Stork, A Fluor Company

The Oil & Gas UK Excellence in Decommissioning Award 2018

CNR International (UK) Limited

The Oil & Gas Authority MER UK Award 2018 (sponsored by Oil and Gas Authority)

CNR International (UK) Limited

HGSL, Dana Petroleum and Premier Oil

 

A new interactive online tool which aims to help oil and gas firms “streamline and optimise” for the future will be launched at Oil & Gas UK’s revamped Share Fair this week.

The industry’s Efficiency Task Force (ETF) is gearing up to exhibit at this year’s event on Wednesday, October 31 – and will unveil a new online dashboard as part of the second phase of development since its inception.

Set up in 2015, the ETF aims to seek out, promote and provide access to efficient practice across the industry while maintaining safe operations.

In just three years, experts have secured transformational change in areas including business processes, standardisation and simplification, culture and behaviours.

Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager, said:

“As the industry is entering a period of relative stability, the role of the Efficiency Task Force will evolve as we look to optimise what we have gained so far in terms of industry best practice.

“Our new dashboard will offer a quick ‘at a glance’ overview of business activity and overall industry action. This interactive tool will help our members easily navigate existing resources and provide a user-friendly experience for members.

“The ETF will also be sharing a series of vlogs at the membership stand at Share Fair as part of our online hub. We encourage people to come along and visit our stand to find out how they can tap into the tools available.”

There are a variety of ways people can get involved in the Efficiency Task Force, from becoming an efficiency champion to hosting a roadshow, which aims to allow businesses to share best practice and streamline ways of working.

The Efficiency Task Force is the first of its kind for any oil and gas province, aligning with all industry initiatives efforts. It is one of the six MER UK (Maximising Economic Recovery) task forces under the MER UK Forum, bringing together government, industry, and the OGA to drive collective action on key priorities.

 

Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager

Over 50 oil and gas company representatives have been nominated as part of a key network re-launch that Oil & Gas UK is spearheading under its Efficiency Task Force (ETF).

Set up in 2015, the Continuous Improvement Network looks to better understand the nature of efficiency in the UKCS by examining collaborative and continuous improvement practices. Specifically, it seeks to understand what promotes and hinders improvement in the basin.

Hosted by Brian Rodger of Nexen, the event will be held on Monday, October 29, and aims to re-energise continuous improvement experts from across the supply chain, whilst providing an update on the work of the ETF to date.

Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager will be joined by Adrian Wookey from ECITB (Engineering Construction Industry Training Board) who will highlight the progress of a new training tool which is being piloted.  Other organisations will also be presenting, including Asco, Sharecat and Robert Gordon University.

She said: “The Continuous Improvement Network acts as a key facilitator for the work of the Efficiency Task Force in improving the competitiveness of the UK Continental Shelf.

“With a network of continuous improvement champions working in companies right across the UK’s offshore oil and gas industry, the ETF continues to build the foundations for a more sustainable and globally competitive industry, with optimisation a key focus as we look to the future.

“The voluntary continuous improvement network has already made a valuable contribution to industry in championing innovation, driving change and challenging old habits.

“From developing sector case studies, to hosting roadshows, the network is a prime example of how we are working together to maximise economic recovery from the UK Continental Shelf. This re-launch will reaffirm our ambitions and purpose as we look to build on what we have gained so far.”

The event, which will be held at Nexen’s office in Kingswells, Aberdeen, comes amid the development of the second phase of Oil & Gas UK’s Efficiency Hub – the first of which was launched last year to provide a one-stop shop for initiatives which help industry improve its performance.

The new interactive dashboard, to be officially launched at Share Fair on October 31, will offer a variety of tools and case studies to help businesses optimise for the future.

For more information on the Continuous Improvement Network event or how to get involved contact Mariesha Jaffray at mjaffray@oilandgasuk.co.uk

 

 

Commenting on news that Zennor Petroleum Limited has been given field development plan approval for the Finlaggan field in the Central North Sea, and BP has received field development plan approval for its Alligin development west of Shetland, Oil & Gas UK Upstream Policy Director Mike Tholen said:

“This brings the total number of new field developments projects brought into play through formal OGA approvals in 2018 to nine. This is the same amount as the last three years combined, with more expected to be announced in the coming months. As the year draws to a close we are seeing an improved landscape for the sector after one of the most testing and prolonged downturns in its history.

“It’s why industry, governments and the regulator must remain focused on strengthening the competitive investment conditions which are breathing fresh life into the basin and providing new business for the supply chain.

“Through putting existing infrastructure to work, Zennor’s Finlaggan field in the Central North Sea shows how new entrants are bringing fresh perspectives and new investment to the basin.

“This has been an exciting year for BP with Clair Ridge due to come on later this year and recent exploration success in its Capercaillie and Achmelvich wells. Ambitious projects like Alligin show the potential that still exists in the UK Continental Shelf and are a positive endorsement by a supermajor of the future of the basin.

“This is maximising economic recovery in action and shows the determination of the basin to work innovatively and collaboratively in pursuit of Vision 2035 –  ultimately adding a generation of productive life to the UK Continental Shelf.”

Commenting on the news today that Shell has announced a final investment decision (FID) for the Arran field in the North Sea – whilst also becoming operator of the project – Oil & Gas UK’s Upstream Policy Director, Mike Tholen, said:

“This is a significant announcement from Shell, marking its fourth FID in the UK North Sea this year, and will further boost investor confidence in the potential of the basin.

“At peak production, the Arran field is expected to produce around 21,000 boe (barrels of oil equivalent) per day, and Shell’s focus on efficiency, innovation and collaboration means it is well positioned to maximise economic recovery from the field.

“The industry’s challenge is to hold firm in its approach to further improve the competitiveness of the basin so that it continues to be an attractive destination for investors.”

 

 

Commenting on OGA’s report published today on UKCS operating costs, Oil & Gas UK’s Market Intelligence Manager, Ross Dornan, said:

“The UK Continental Shelf (UKCS) is a more attractive investment proposition today which is evidenced by recent commitments and discoveries – our challenge now is to encourage continued investment in the basin going forward into next year and beyond.

“As our recent Economic Report highlighted, although the cost of production is an important component in driving competitiveness, it is just one factor among other influences. These also include our people and skills, a robust supply chain and infrastructure network, as well as a competitive and predictable fiscal regime, which all underpin the success of the industry on a global scale.

“To achieve this, we have to drive an increase in activity while continuing to find and implement even more efficient ways of working. The skills and services that exist within the supply chain will be fundamental in driving these efforts, as set out in Vision 2035.”

Oil & Gas UK’s Efficiency Task Force (ETF) is hosting a free roadshow next month in a bid to share best practice in the subsea sector.

In collaboration with Subsea UK and Scottish Enterprise, the event will explore and share ways in which the subsea community can work together to improve the competitiveness of the UKCS (UK Continental Shelf).

Attendees will have the chance to hear about the work of the ETF and more specifically, case studies using good practice guidelines for subsea standardisation and simplification, as well as examples from ongoing optimisation initiatives.

This includes the Scottish Enterprise Subsea Action Plan and an update on the underwater initiatives being progressed under the sector deal proposal.

Commenting on the event, Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager, said:

“We know that through collaboration companies are able to reduce costs, share knowledge and maximise the economic recovery from the basin – and this is what we are striving to achieve in the subsea sector with this event.

“We have delivered 12 successful roadshows to date, including Shell, Petrofac, Aker, Subsea 7, Technip, Amec Foster Wheeler and Nexen, which have been attended by over 800 employees.

“The roadshows are a great opportunity to share the good work being done across industry to improve efficiency. They are also key to building on what the Efficiency Task Force has already achieved and we are looking forward to welcoming delegates to this upcoming event.”

Phil Simons, Senior Vice President at Subsea 7 and ETF Chair, said:

“The ETF roadshows continue to play an important part in sustaining the industry-led efficiency efforts set out in 2015.

“At each roadshow it has been rewarding to hear the diverse mix of ideas being shared, and the possibilities these offer to achieve greater simplicity and efficiency, while also challenging old habits.”

Led by industry for industry, the Efficiency Task Force aims to seek out, promote and provide access to efficient practice across the oil and gas industry, while maintaining safe operations.

Further speakers confirmed for the roadshow so far include Phil Simons of Subsea 7, Neil Gordon of Subsea UK, and David Rennie from Scottish Enterprise. Presentations will be followed with a discussion around barriers and facilitators/challenges faced specifically by the subsea sector.

This roadshow, which will be held at the Chester Hotel in Aberdeen on 16 November, is free to attend and can be booked online.

 

Commenting on the news that Verus Petroleum announced a multi-million pound deal for North Sea assets, Oil & Gas UK Upstream Policy Director Mike Tholen said:

“This multi-million-pound transaction stands to be a neat illustration of how the hard work to improve the attractiveness of the UK Continental Shelf is enabling a diverse range of investors to play into the basin.

“As our Economic Report recently showed, reduced costs, competitive fiscal terms, improved operational performance and more stable oil and gas prices have generated improved investment conditions. Verus Petroleum’s acquisition shows the potential they see for growth, key to maximising economic recovery and achieving Vision 2035.”

 Ends

Environmental performance of industry captured in key report

A new report which provides an update on the environmental landscape of the UK offshore oil and gas industry to the end of 2017 has been published by Oil & Gas UK today (6 December).

The 2018 Environment Report, which analyses and interprets data gathered and monitored by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), considers performance across a range of areas including emissions to atmosphere, chemical discharge, waste disposal and produced water.

The insight also provides a summary of activities undertaken by Oil & Gas UK groups over the last year to support the development of new environmental legislation, to share lessons learnt and good practice, and to improve industry environmental management.

Key findings include:

  • 2017 saw a reduction of 3 per cent in the volume of produced water discharged to sea during oil and gas production compared to 2016
  • The total amount of dispersed oil contained in the produced water discharged rose slightly to 2,140 tonnes.
  • Reinjection of produced water increased by 10 percent on the year and is at its highest recorded level.
  • Greenhouse Gas Emissions per installation were lower in 2017 than in 2016.
  • Industry’s greenhouse gas emissions contribute around 3 per cent of the total UK emissions, the same proportion as in 2016.
  • Over the same period carbon dioxide (CO2) emissions from the UK Continental Shelf (UKCS) saw an increase from 13.1 million tonnes in 2016 to 14.2 million tonnes in 2017, although the sector’s long-term trend for CO2 emissions continues to fall.
  • Gas venting saw an increase. Nearly one-third of the total was due to incombustible gas emissions where the CO2 content was too high to enable ignition which had to be vented rather than flared.
  • There were 451 accidental releases of oil and chemicals, fewer than in 2016, which amounted to around 279 tonnes reaching the marine environment.
  • Of these, 253 were accidental releases of approximately 23 tonnes of oil, representing 0.00003 per cent of total production
  • The majority of accidental chemical releases (96 per cent) are labelled as low hazard or PLONOR chemicals.

Commenting on the report, launched with industry this morning, Oil & Gas UK Environment Manager Katie Abbott said:

“The UK Continental Shelf is a mature and complex basin, and the challenges that accompany the production of hydrocarbons here mean that the data outlined in this report are equally complex.

“While innovative technology is contributing to environmental performance, through enhanced oil recovery which includes produced water re-injection, and the reduction in associated gas flared, challenges remain in other aspects.

“We continue to appraise longer term trends to identify learnings from accidental releases including the low frequency, high mass incidents.

“As a major hazard and heavily regulated industry, continued engagement with regulators, government and the sector is key in supporting efforts to reduce environmental risk, ensuring continued safe operation.”

“With that in mind, this annual report provides an opportunity for industry to review environmental performance indicators, reflect on the compliant practices and focus on areas where there are opportunities to drive further improvements.”

First oil on Garten shows agility of competitive UKCS

The leading representative body for the UK’s offshore oil and gas industry has hailed news that Apache Corporation has reached first oil in just eight months from its Garten field as remarkable.

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

“To have delivered a project from discovery to first oil in just eight months shows the remarkable agility of the UK Continental Shelf as it continues to become more competitive.

“Apache have shown what can be achieved through a constructive and collaborative relationship with its supply chain. This is great news for everyone involved in the project, and to the wider industry who will be keen to share in the lessons learned. 

“It is further proof that the UK’s offshore oil and gas industry is staying the course on the road to Vision 2035.” 

Latest industry collaboration efforts to be unveiled at key event

 

The results of a survey studying collaboration across the UK’s oil and gas industry in efforts to unlock efficiencies will be published this month – crucial to extending the life of the basin and achieving Vision 2035.

Jointly led by Oil & Gas UK and Deloitte, the Supply Chain Collaboration Survey explores the motives and effectiveness of collaboration between supply chain companies and operators.

The report will be unveiled at a launch event hosted by Oil & Gas UK in Aberdeen on Wednesday, December 12. The 2017 report saw the UK’s offshore oil and gas industry clear the second hurdle in embracing effective collaboration, increasing its score to 7.1 out of 10 – up from 6.6 in 2016 – on the Collaboration Index, which measures collaborative practices.

The event will be chaired by Oil & Gas UK’s Supply Chain and HSE Director, Matt Abraham, who will be joined by Nick Clark, director at Deloitte and Dr Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager.

Speaking ahead of the event, Dr Mariesha Jaffray said:

“Collaboration was identified by the Wood Review as a fundamental behaviour in securing the successful future of the UK Continental Shelf (UKCS). Our work in the pioneering Efficiency Task Force has shown that industry has embraced this approach and is already reaping the rewards of this cultural change.

“This survey provides us with a further opportunity to identify areas we can build on and improve in our efforts to maximise economic recovery from the UK Continental Shelf, and to ultimately realise Vision 2035.”

Scott McGinigal, Vice President Business Services at Nexen and Scott Cameron, Business Unit Director at Subsea 7, will also discuss key case studies at the event which will be followed by a panel discussion.

Graham Hollis, senior partner for Deloitte in Aberdeen, said: “The Supply Chain Collaboration Survey – which seeks the views of over 150 operators and suppliers across the UK Continental Shelf – is a key barometer of what is happening in our sector. As part of the survey, the Collaboration Index measures the effectiveness of companies as partners in collaboration.

“Last year we saw real progress as our survey returned a 7.1 Collaboration Index score, the highest score to date. It will be interesting to see how the findings pan out this year as oil prices have gone up and businesses are doing better – will collaboration still be a priority?”

Key report signals positive industry mood but highlights need for continued investment

Oil & Gas UK has said it is encouraged by the latest Oil and Gas Survey issued by Aberdeen and Grampian Chamber of Commerce today, which reveals industry recruitment is on the rise as 33 per cent of firms look to increase their UK workforce by 10 per cent or more in 2019.

The leading representative body for the sector highlighted the need for the industry to continue to persevere to maintain its attractiveness as the report also highlights a potential skills gap.

Commenting on the findings, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“We do now see a more positive mood in the sector, with more projects approved this year than in the last three years combined.

 “However, as we continue to emerge from one of the toughest downturns in our history, industry remains focused on maintaining its attractiveness in a competitive global market.

 “As the report shows, the UK offshore oil and gas industry will continue to support highly-skilled roles for many years to come. Our strategy under Vision 2035 aims to add a generation of productive life to the basin, whilst doubling the supply chain’s global footprint.

“To achieve this, we need to continue to attract investment by ensuring strong competitive conditions for the basin, whilst expanding our reach through transporting the industry’s vast range of skills and talent across the globe.”

Industry stands ready to support carbon capture

The leading representative body for the UK’s offshore oil and gas industry has championed its skills and capabilities in response to a highly anticipated report from the UK Government outlining its plans to support carbon capture usage and storage.

Energy Minister Claire Perry today published an action plan to deliver the UK’s first carbon capture usage and storage project by the mid-2020s. The plan, outlined by the Minister at a global summit in Edinburgh, highlights the critical role of the sector in enabling CCUS technologies to be deployed at scale by the 2030s.

The pathway includes plans to work with industry and other bodies to identify existing oil and gas infrastructure which could be re-used to support the development of CCUS in the UK.

Commenting, Oil & Gas UK Chief Executive Deirdre Michie said:

“The UK’s offshore oil and gas industry stands ready to support the development of carbon capture, usage and storage. Our supply chain is uniquely positioned to deliver cost effective, competently engineered solutions for CCUS.

“As the UK Government’s plan notes, our world-leading sector enjoys a highly skilled and experienced workforce, established infrastructure and existing support for the work of the task force. Coupled with our ambition to meet more of the UK’s energy demands from indigenous resources over the longer term, outlined in Vision 2035, we recognise the important role we have to play in moves towards a lower carbon economy.

“It’s another example of how, at every stage of the UK’s energy journey, our pioneering industry continues to transform and adapt.”

Brexit withdrawal paper

Commenting, Oil & Gas UK Chief Executive Deirdre Michie said:

“We welcome the further detail provided to industry through the draft withdrawal agreement. This is an extensive legal document which we will now analyse and review in full with our membership.

“Our focus remains on securing the best outcome for the UK’s offshore oil and gas industry. That is, protecting the offshore industry from future EU regulatory changes, minimal friction between the UK and EU, maintaining a strong voice in Europe, protecting energy trading and the internal energy market and protecting our licence to operate.

“We will continue to put forward these priorities in our discussions with the Government in the coming days.”

Book fuels industry to inspire next generation of female talent

Kay Heidenreich of Oil & Gas UK officially launches her book at an event in Aberdeen on Friday, November 2

Over 120 people from across the UK’s oil and gas industry gathered in Aberdeen today to mark the launch of a new book which aims to inspire the next generation of female talent.

Author and Oil & Gas UK operations optimisation manager, Katy Heidenreich, gave an overview of the book before taking part in a panel discussion with leading diversity and inclusion influencers.

The Oil Industry’s Best Kept Secret – A book full of inspiration and advice” serves as a practical handbook to people thinking about their careers, offering advice and case studies collated from interviews with over 40 women working in the sector.

Speaking after the launch, Katy Heidenreich said:

“I’m very grateful for the warm reception the book received from industry colleagues today. It confirms that we have a lot to be hopeful for, with so many passionate and ambitious people willing to do everything it takes to drive meaningful change.

“My message to everyone today, and in my book, is that we are all role models when it comes to promoting our industry as a great place to work. We need to get out there, tell our stories and inspire the next generation of female talent so that we can achieve a balanced workforce which reflects society.

“This is the beginning of a very exciting journey. I look forward to hearing and meeting more of the inspirational people in our industry that my book is able to offer a brief glimpse on.”

 

Inspiring industry leaders and pioneering projects recognised at annual awards

The finalists and winners of the Oil & Gas UK Awards 2018 celebrate

 

An inspirational graduate whose safety initiatives have led the way for critical emergency response plans offshore, and an industry-leading project which championed collaboration were among those who secured accolades last night (Thursday, November 2) at the Oil & Gas UK Awards 2018.

More than 500 people from across the industry gathered to celebrate pioneering individuals and companies for their contributions in business innovation, workforce engagement and decommissioning.

Hosted by Channel 4 news presenter Cathy Newman, the annual ceremony held at the AECC in Aberdeen recognises outstanding performance from companies, as well as high-performing individuals, for their unique, positive and notable contributions to the sector.

Praising the winners, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“Our awards are a highlight of the industry calendar and are an opportunity to celebrate the achievements of the people in our pioneering sector, which continues to adapt, improve and build its strength even in the face of the tough challenges in recent years.

“Hearing about the remarkable achievements by companies and individuals reinforces the bright future which lies ahead for the UK’s offshore oil and gas industry.

“Many congratulations to all winners and those who were shortlisted.  Our judges had a tough job sifting through really great nominations, all of which serve as a reminder of the dedication, perseverance and continued hard work of those working in our sector.”

Sponsored by Shell UK Limited, who this year celebrate 50 years of operation in the UKCS, the evening also included a speech from the company’s Vice President of Upstream, Steve Phimister.

The winners across the nine categories are as follows:

The Oil & Gas UK Young Professional of the Year Award 2018

Apprentice of the Year (sponsored by OPITO)

Ryan Fernando, Aker Solutions

Graduate of the Year (sponsored by ECITB)

Gareth McQueen, Shell U.K. Limited

The Oil & Gas UK Mentor of the Year Award 2018

Giuseppe Tizzano, BP

The Oil & Gas UK Diversity and Inclusiveness Award 2018 (sponsored by Spirit Energy)

BP North Sea BRGs

The Oil & Gas UK Workforce Engagement Award 2018 (sponsored by Fairfield Energy Limited)

Shell U.K. Limited

The Oil & Gas UK Business Innovation Award 2018

SME – AIS Training

Large Enterprise – Stork, A Fluor Company

The Oil & Gas UK Excellence in Decommissioning Award 2018

CNR International (UK) Limited

The Oil & Gas Authority MER UK Award 2018 (sponsored by Oil and Gas Authority)

CNR International (UK) Limited

HGSL, Dana Petroleum and Premier Oil

New interactive dashboard to unlock industry efficiencies and “optimise” businesses

 

A new interactive online tool which aims to help oil and gas firms “streamline and optimise” for the future will be launched at Oil & Gas UK’s revamped Share Fair this week.

The industry’s Efficiency Task Force (ETF) is gearing up to exhibit at this year’s event on Wednesday, October 31 – and will unveil a new online dashboard as part of the second phase of development since its inception.

Set up in 2015, the ETF aims to seek out, promote and provide access to efficient practice across the industry while maintaining safe operations.

In just three years, experts have secured transformational change in areas including business processes, standardisation and simplification, culture and behaviours.

Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager, said:

“As the industry is entering a period of relative stability, the role of the Efficiency Task Force will evolve as we look to optimise what we have gained so far in terms of industry best practice.

“Our new dashboard will offer a quick ‘at a glance’ overview of business activity and overall industry action. This interactive tool will help our members easily navigate existing resources and provide a user-friendly experience for members.

“The ETF will also be sharing a series of vlogs at the membership stand at Share Fair as part of our online hub. We encourage people to come along and visit our stand to find out how they can tap into the tools available.”

There are a variety of ways people can get involved in the Efficiency Task Force, from becoming an efficiency champion to hosting a roadshow, which aims to allow businesses to share best practice and streamline ways of working.

The Efficiency Task Force is the first of its kind for any oil and gas province, aligning with all industry initiatives efforts. It is one of the six MER UK (Maximising Economic Recovery) task forces under the MER UK Forum, bringing together government, industry, and the OGA to drive collective action on key priorities.

Company experts join forces to re-launch key Oil & Gas UK network

 

Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager

Over 50 oil and gas company representatives have been nominated as part of a key network re-launch that Oil & Gas UK is spearheading under its Efficiency Task Force (ETF).

Set up in 2015, the Continuous Improvement Network looks to better understand the nature of efficiency in the UKCS by examining collaborative and continuous improvement practices. Specifically, it seeks to understand what promotes and hinders improvement in the basin.

Hosted by Brian Rodger of Nexen, the event will be held on Monday, October 29, and aims to re-energise continuous improvement experts from across the supply chain, whilst providing an update on the work of the ETF to date.

Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager will be joined by Adrian Wookey from ECITB (Engineering Construction Industry Training Board) who will highlight the progress of a new training tool which is being piloted.  Other organisations will also be presenting, including Asco, Sharecat and Robert Gordon University.

She said: “The Continuous Improvement Network acts as a key facilitator for the work of the Efficiency Task Force in improving the competitiveness of the UK Continental Shelf.

“With a network of continuous improvement champions working in companies right across the UK’s offshore oil and gas industry, the ETF continues to build the foundations for a more sustainable and globally competitive industry, with optimisation a key focus as we look to the future.

“The voluntary continuous improvement network has already made a valuable contribution to industry in championing innovation, driving change and challenging old habits.

“From developing sector case studies, to hosting roadshows, the network is a prime example of how we are working together to maximise economic recovery from the UK Continental Shelf. This re-launch will reaffirm our ambitions and purpose as we look to build on what we have gained so far.”

The event, which will be held at Nexen’s office in Kingswells, Aberdeen, comes amid the development of the second phase of Oil & Gas UK’s Efficiency Hub – the first of which was launched last year to provide a one-stop shop for initiatives which help industry improve its performance.

The new interactive dashboard, to be officially launched at Share Fair on October 31, will offer a variety of tools and case studies to help businesses optimise for the future.

For more information on the Continuous Improvement Network event or how to get involved contact Mariesha Jaffray at mjaffray@oilandgasuk.co.uk

 

 

New developments show conditions breathing fresh life into basin

Commenting on news that Zennor Petroleum Limited has been given field development plan approval for the Finlaggan field in the Central North Sea, and BP has received field development plan approval for its Alligin development west of Shetland, Oil & Gas UK Upstream Policy Director Mike Tholen said:

“This brings the total number of new field developments projects brought into play through formal OGA approvals in 2018 to nine. This is the same amount as the last three years combined, with more expected to be announced in the coming months. As the year draws to a close we are seeing an improved landscape for the sector after one of the most testing and prolonged downturns in its history.

“It’s why industry, governments and the regulator must remain focused on strengthening the competitive investment conditions which are breathing fresh life into the basin and providing new business for the supply chain.

“Through putting existing infrastructure to work, Zennor’s Finlaggan field in the Central North Sea shows how new entrants are bringing fresh perspectives and new investment to the basin.

“This has been an exciting year for BP with Clair Ridge due to come on later this year and recent exploration success in its Capercaillie and Achmelvich wells. Ambitious projects like Alligin show the potential that still exists in the UK Continental Shelf and are a positive endorsement by a supermajor of the future of the basin.

“This is maximising economic recovery in action and shows the determination of the basin to work innovatively and collaboratively in pursuit of Vision 2035 –  ultimately adding a generation of productive life to the UK Continental Shelf.”

Shell proceeds with Arran field development marking confidence in UKCS

Commenting on the news today that Shell has announced a final investment decision (FID) for the Arran field in the North Sea – whilst also becoming operator of the project – Oil & Gas UK’s Upstream Policy Director, Mike Tholen, said:

“This is a significant announcement from Shell, marking its fourth FID in the UK North Sea this year, and will further boost investor confidence in the potential of the basin.

“At peak production, the Arran field is expected to produce around 21,000 boe (barrels of oil equivalent) per day, and Shell’s focus on efficiency, innovation and collaboration means it is well positioned to maximise economic recovery from the field.

“The industry’s challenge is to hold firm in its approach to further improve the competitiveness of the basin so that it continues to be an attractive destination for investors.”

 

OGA report on UKCS operating costs reflects period of stability

 

Commenting on OGA’s report published today on UKCS operating costs, Oil & Gas UK’s Market Intelligence Manager, Ross Dornan, said:

“The UK Continental Shelf (UKCS) is a more attractive investment proposition today which is evidenced by recent commitments and discoveries – our challenge now is to encourage continued investment in the basin going forward into next year and beyond.

“As our recent Economic Report highlighted, although the cost of production is an important component in driving competitiveness, it is just one factor among other influences. These also include our people and skills, a robust supply chain and infrastructure network, as well as a competitive and predictable fiscal regime, which all underpin the success of the industry on a global scale.

“To achieve this, we have to drive an increase in activity while continuing to find and implement even more efficient ways of working. The skills and services that exist within the supply chain will be fundamental in driving these efforts, as set out in Vision 2035.”

Industry efficiency taskforce to host key roadshow on subsea knowledge and best practice

Oil & Gas UK’s Efficiency Task Force (ETF) is hosting a free roadshow next month in a bid to share best practice in the subsea sector.

In collaboration with Subsea UK and Scottish Enterprise, the event will explore and share ways in which the subsea community can work together to improve the competitiveness of the UKCS (UK Continental Shelf).

Attendees will have the chance to hear about the work of the ETF and more specifically, case studies using good practice guidelines for subsea standardisation and simplification, as well as examples from ongoing optimisation initiatives.

This includes the Scottish Enterprise Subsea Action Plan and an update on the underwater initiatives being progressed under the sector deal proposal.

Commenting on the event, Mariesha Jaffray, Oil & Gas UK’s Continuous Improvement Manager, said:

“We know that through collaboration companies are able to reduce costs, share knowledge and maximise the economic recovery from the basin – and this is what we are striving to achieve in the subsea sector with this event.

“We have delivered 12 successful roadshows to date, including Shell, Petrofac, Aker, Subsea 7, Technip, Amec Foster Wheeler and Nexen, which have been attended by over 800 employees.

“The roadshows are a great opportunity to share the good work being done across industry to improve efficiency. They are also key to building on what the Efficiency Task Force has already achieved and we are looking forward to welcoming delegates to this upcoming event.”

Phil Simons, Senior Vice President at Subsea 7 and ETF Chair, said:

“The ETF roadshows continue to play an important part in sustaining the industry-led efficiency efforts set out in 2015.

“At each roadshow it has been rewarding to hear the diverse mix of ideas being shared, and the possibilities these offer to achieve greater simplicity and efficiency, while also challenging old habits.”

Led by industry for industry, the Efficiency Task Force aims to seek out, promote and provide access to efficient practice across the oil and gas industry, while maintaining safe operations.

Further speakers confirmed for the roadshow so far include Phil Simons of Subsea 7, Neil Gordon of Subsea UK, and David Rennie from Scottish Enterprise. Presentations will be followed with a discussion around barriers and facilitators/challenges faced specifically by the subsea sector.

This roadshow, which will be held at the Chester Hotel in Aberdeen on 16 November, is free to attend and can be booked online.

Verus Petroleum acquisition shows improved competitiveness of UKCS

 

Commenting on the news that Verus Petroleum announced a multi-million pound deal for North Sea assets, Oil & Gas UK Upstream Policy Director Mike Tholen said:

“This multi-million-pound transaction stands to be a neat illustration of how the hard work to improve the attractiveness of the UK Continental Shelf is enabling a diverse range of investors to play into the basin.

“As our Economic Report recently showed, reduced costs, competitive fiscal terms, improved operational performance and more stable oil and gas prices have generated improved investment conditions. Verus Petroleum’s acquisition shows the potential they see for growth, key to maximising economic recovery and achieving Vision 2035.”

 Ends