The UK government has today announced (Wednesday, 24 March) that it will deliver a transformational deal in partnership with the UK oil and gas industry to tackle climate change and deliver key aspects of their ten-point plan.

The deal is the first of its kind by any G7 country, setting an example of how oil and gas producing countries can move fairly towards a lower carbon future in a way which supports the economy, jobs, and energy communities across the UK.

Developed in partnership with the leading representative body for the sector, OGUK, the North Sea Transition Deal outlines over 50 government and industry actions to accelerate moves towards the government’s target of net zero emissions by 2050.

Key commitments in the North Sea Transition Deal include:

  • The sector setting early targets to reduce emissions by 10% by 2025 and 25% by 2027 and has committed to cut emissions by 50% by 2030.
  • Joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions. This includes up to £3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to £3 billion on Carbon Capture Usage and Storage, and up to £10 billion for hydrogen production.
  • By 2030, the sector will voluntarily commit to ensuring that 50% of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK.
  • The appointment of an Industry Supply Chain Champion who will support the coordination of local growth and job opportunities with other sectors, such as Carbon Capture Usage and Storage and offshore wind.

The deal will help to:

  • Unlock up to £16bn in investment over the next decade in crucial low carbon solutions including CCUS and hydrogen
  • Support the creation of up to 40,000 new energy jobs in industrial heartlands across the UK
  • Cut UK emissions by 60 million tonnes, with 15 million tonnes of reductions from industry production by 2030 - the equivalent of annual emissions from 90% of the UK’s homes
  • Boost the world-leading infrastructure – carbon capture – the Committee on Climate Change says is necessary to tackle climate change
    • Kickstart hydrogen here in the UK, building a platform to provide an alternative for heating, heavy industry, and transport
  • Ensure energy communities like Aberdeen and Teesside can successfully transition, retaining jobs and skills and creating a more diverse and inclusive workforce
  • Reduce reliance on imported oil and gas – and be accountable for associated emissions

It comes after the sector published Roadmap 2035: a blueprint for net zero, in 2019, and was one of the first industry responses to the government’s climate change commitments.

The deal has been agreed between Business and Energy Secretary Kwasi Kwarteng on behalf of the UK Government and OGUK Chief Executive Deirdre Michie on behalf of industry.

Commenting, OGUK Chief Executive Deirdre Michie OBE said:

“The North Sea Transition Deal is a transformative partnership which will harness the expertise of the UK offshore oil and gas industry to urgently meet the country’s climate ambitions of net zero emissions by 2050.

“It will unlock billions of pounds of investment and see government and industry work together to deliver a homegrown energy transition, realising innovative low carbon solutions that can be exported globally.

“The Deal will safeguard UK energy security, providing affordable energy to millions of households, secure tens of thousands of jobs in industrial heartlands across the country and support the UK economy. It is the first deal of its kind by any G7 country and a striking example of the UK showing global leadership on climate change ahead of COP26.”

Business and Energy Secretary Kwasi Kwarteng said:

“Today, we are sending a clear message around the world that the UK will be a nation of clean energy as we build back better and greener from the pandemic.

“We will not leave oil and gas workers behind in the United Kingdom’s irreversible shift away from fossil fuels. Through this landmark sector deal, we will harness the skills, capabilities and pent-up private investment potential of the oil and gas sector to power the green industrial revolution, turning its focus to the next-generation clean technologies the UK needs to support a green economy.

“At every step on the path to net zero emissions, we will create the right conditions for new green industries to base themselves in the UK and create new high-value employment opportunities, while future-proofing existing businesses to secure the long-term viability of jobs in our industrial heartlands.”

Energy Minister Anne-Marie Trevelyan said:

“We need to urgently end our reliance on fossil fuels and through our pioneering North Sea Transition Deal we will do so without putting our economy and communities at risk.

“While the future oil and gas sector will look very different to how it does today, the industry, businesses and supply chains it supports will have a new mission to help the UK decarbonise and develop the clean technologies of the future, as we lead the green industrial revolution.”

UK Government Minister for Scotland David Duguid said:

“The oil and gas industry has already made great strides towards a greener, more sustainable future and the North Sea Transition Deal, agreed between the UK Government and industry, takes those ambitions a step further.

“The North East of Scotland has long been seen as a centre of excellence in the oil and gas industry – there’s no reason why it can’t now be seen as a global centre of excellence for energy transition.

“This is not just about making the transition from hydrocarbons to renewables. It’s about a transition of jobs, skills and expertise as well.

“The UK Government has worked consistently and intensively with the industry, and we will continue to do so, to make progress on a scientific, data and evidence-led basis.”

Chief Executive of the Oil & Gas Authority, Dr Andy Samuel said:

“This deal marks an exciting new chapter for the North Sea, confirming energy transition in action. It is the culmination of a lot of work between government, industry and the OGA. As long as oil and gas remain part of the UK’s energy mix, they must be produced more cleanly and in line with net zero.

“Our role includes monitoring and holding industry to account on its emissions reduction performance. The recent funding for a number of energy transition projects is very timely. We are happy to be supporting projects like Acorn, Hynet, Net Zero Teeside and Zero Carbon Humber, along with the Energy Transition Zone and the Global Underwater Hub.

“Our studies show how the UK Continental Shelf can provide 60% of the UK’s overall carbon reduction requirements to meet Net Zero 2050, through electrification, carbon capture and storage, hydrogen and offshore wind.”

The UK oil and gas industry has welcomed some of the measures announced by the Chancellor in today’s Budget, adding that now close cooperation with the sector is essential to maximise its world-leading expertise and assure a successful green energy transition.

The leading representative body for the sector OGUK said the combination of taxation and investment measures offers a potentially strong route to transition energy and employment ahead of the much anticipated and crucial North Sea Transition Deal that we are negotiating with Government.

OGUK Chief Executive Deirdre Michie, said:

“We welcome the measures around supporting green energy innovation set out by the Chancellor in his Budget Statement today.

“We look forward to engaging with his department on the review of Research & Development tax relief, which can be a key driver of success in the field of green technology.

“The investment towards the Aberdeen Energy Transition Zone, Global Underwater Hub and Hydrogen Hub in Anglesey are encouraging starts to this country’s journey to a low-carbon future that also supports climate goals, employment and energy security.

“Central to all of this is the North Sea Transition Deal reaffirmed by the Chancellor today. Having powered the country for over 50 years, the UK’s oil and gas sector’s energy expertise is crucial to developing the green innovation required to see the UK achieve net-zero emissions by 2050.

“Designed properly, the Deal should be an exciting blueprint to meeting that goal, whilst creating tens of thousands of high-quality jobs and attracting billions of pounds of investment into parts of the country that need it most. We look forward to successfully implementing it in partnership with the Government and making the UK a global hub for green energy technology.”

Ends

The leading representative body for the UK oil and gas industry, OGUK, has announced that tickets are now live for its first-ever wholly digital Health, Safety & Environment Conference. As we follow on from the tumultuous events of 2020, this year‘s conference asks the question, ‘Where next for our industry?’

The event, titled ‘Looking back to move forward – where next for HSE?’ will be held on 24-25 March 2021. OGUK is once again moving beyond the confines of a traditional conference, providing a digital platform for ideas and discussion about the future of oil and gas.

Over the two-day event, OGUK will be joined by leading voices and world-class experts in the fields of health, safety, and environment to reflect on the impact of the past 12 months, as well as looking forward to 2021 and beyond, asking what industry must do to continue improving our HSE performance.

Keynote speakers include Deirdre Michie (OGUK), Sarah Newton (Chair, HSE), Fuzzy Bitar (BP), Steve Hunt (Stork), and Dr Martin Valenti (Scottish Enterprise). OGUK are also delighted to announce that they will be joined by Sir David Spiegelhalter OBE FRS, British statistician and Winton Professor of the Public Understanding of Risk in the Statistical Laboratory at the University of Cambridge.

OGUK Health, Safety & Environment Director, Trevor Stapleton commented:

“After a year like no other for our industry, this year’s HSE Conference provides us with a unique opportunity to gather leading industry voices to take stock on the past 12 months and to discuss what HSE looks like for our sector as we navigate toward a post-pandemic world.

“We’re delighted to be joined by some of the industry’s pioneering and expert thinkers on the topic of HSE, and I look forward to welcoming colleagues from across the sector to this event.”

To book your place, or to view sponsorship and exhibition opportunities, please visit https://ogukhseconference.co.uk/

ENDS

5 February 2021

The leading representative body for the UK oil and gas industry has today announced the appointment of a new co-chair to its board, as the sector focuses on the industry’s recovery whilst meeting net-zero targets for 2021.

Arne Gürtner, Senior Vice President UK & Ireland Offshore at Equinor has now assumed this role bringing with him a wealth of industry experience. In this capacity, Arne will work with Contractor Co-chair, Phil Simons, VP North Sea & Canada, Subsea 7.

Across the UK, Equinor has a broad energy portfolio of oil, gas, offshore wind and low carbon projects. Based in Equinor’s UK operations headquarters in Aberdeen, Arne leads the organisation supporting Equinor’s UK and Ireland upstream activities, which includes the Mariner development and Rosebank, one of the largest undeveloped resources on the UKCS.

Gürtner has held a broad variety of leadership roles across Equinor, including his previous position of Vice President for Technical Excellence in a global business function, and brings experience from project development, integrity management and process safety in operations from the UK and Norwegian Continental Shelves, as well as global research and technology development. Gürtner also currently holds the position of OGA Asset Stewardship Task Force Co-Chair.

Arne Gürtner takes over from Phil Kirk, who is stepping down from the role.

Deirdre Michie, OGUK’s chief executive, commented:

“We’re delighted to have Arne step into the role as co-chair of the OGUK board. The industry experience he has will be vital as we seek to manage our way successfully through the challenges brought by the pandemic while seeking to deliver our net-zero ambitions.

“I’d also like to take the opportunity to thank Phil Kirk for all of his support. His insight, steer and guidance has been invaluable, and we are delighted that he will remain on the board.

“We value the different perspectives from across the industry, in our work to deliver Roadmap 2035. This diversity in thought is key to finding solutions for low carbon oil and gas production, whilst doing everything we can to support our world-class but fragile supply chain and protect the skills of our people for the future.”

Ends

The leading representative body for the UK oil and gas industry, OGUK, has appointed three major business leaders to its board as the sector sharpens its focus on the industry’s recovery and meeting net zero targets as it looks ahead to the new year.

Jose Luis Muñoz is CEO of Repsol Sinopec Resources UK Limited. José Luis joined Repsol in 2005 as part of the Strategy and Corporate Development team and was instrumental in the acquisition of the global operations of the former Talisman Energy business. He then went on to drive the post-merger integration of the ex-Talisman operations, ensuring a smooth transition.

Since 2017 and prior to his appointment as CEO, José Luis was Repsol representative within the Executive Committee of Repsol Sinopec Resources UK.

Andy Hessell has more than 30 years’ experience in the UK energy industry specialising in commercial, strategy and business development roles in the UK and overseas.  Over the past five years, as Managing Director, Andy has been successfully growing Kellas Midstream, an innovative independent company that owns and manages critical North Sea infrastructure.

Prior to joining Kellas, Andy enjoyed a 26-year career with BP in a variety of leadership positions including North Sea region Chief Financial Officer and Vice President Commercial Operations, North Sea & Angola.

Also joining the board is Mikki Corcoran, Managing Director of Schlumberger Europe. Prior to this role she worked in North America Offshore as General Manager Drilling, and before that, as Global Account Director for Schlumberger.

During her 20-year career in the Oil & Gas industry with Schlumberger, Mikki has held a variety of management positions, including HR, Operations, Sales & Commercial, and Supply Chain, in Norway, United States, Asia and Europe.

Deirdre Michie, OGUK’s chief executive, commented:

“The diverse experience and knowledge that José, Mikki and Andy bring to the OGUK Board will be a great asset as our industry continues to tackle a challenging landscape of low commodity prices and the coronavirus pandemic, while at the same time seeking to support the UK’s cleaner climate ambitions as we look to 2021 and the challenges and opportunities it will bring.

“This diversity of perspectives from across industry is critical as we work to deliver Roadmap 2035, finding solutions for low carbon oil and gas production while doing everything we can to revive our world-class but fragile supply chain and protect the skills of our people for the future.“

 

Ends

The leading UK oil and gas industry body OGUK has today welcomed the Scottish Government’s Hydrogen Policy Statement, which recognises that the critical role the country’s oil and gas industry has to play in realising a hydrogen economy.

Commenting, OGUK Sustainability Director Mike Tholen said:

“The Scottish Government’s Hydrogen Policy Statement released today recognises the critical role our industry has to play in creating a hydrogen industry, both through the expertise of our supply chain and the talents of our workforce, and in the opportunities presented by repurposing of our infrastructure.

“Investing in these new energy resources will be key to unlocking the challenge of achieving net-zero emissions across the economy. Many businesses within our industry are already actively involved in the development of such hydrogen projects, recognised by the Committee on Climate Change as an essential part of the energy mix in years to come.

“While it’s encouraging to see investments like this, today’s Hydrogen Policy Statement reiterates the importance of securing a sector deal for our industry. We will continue to work at pace with the Scottish government to ensure that our supply chain is supported throughout the transition, securing jobs and the energy supply, whilst supporting our energy communities.”

 

ENDS

The leading representative body for the UK offshore oil and gas industry has today (Wednesday 14 December) responded to the Scottish Government’s updated Climate Change Plan, which recognises the value the oil and gas industry can make in stepping up the transition to net-zero.

Commenting on the updated Climate Change Plan, OGUK Chief Executive Deirdre Michie OBE said:

“The Scottish Governments’ Climate Change Plan recognises the critical role of the country’s changing oil and gas industry in accelerating moves towards a low carbon future.

“Through bringing to life hydrogen and carbon capture, and through harnessing the expertise and skills of our talented people, we can continue to provide lower carbon and affordable energy to millions of people while helping unlock the energy system of the future.

“We keenly await the Scottish Government’s revised Energy Strategy in 2021. However, given the significance of our industry to Scottish jobs and the economy, as well as the triple threat of COVID-19 we’ve faced this year, we must continue to work at pace with the Scottish government to ensure that our supply chain is supported throughout the Just Transition.

“We’re committed to delivering our net-zero goals through reducing our own emissions, as detailed in Roadmap 2035, while many companies are already actively supporting the new CCUS and hydrogen projects recognised by the Committee on Climate Change as essential. We will continue to work with both governments to secure a vital North Sea Transition deal in the first half of 2021, safeguarding jobs and supporting our energy communities in the journey to net-zero.”

 

ENDS

The leading UK oil and gas industry body OGUK has today reinforced the significance of securing a sector deal, in light of new emission targets announced by the Prime Minister today.

The government’s plan commits to reducing the UK’s carbon emissions by at least 68% by 2030, based on 1990 levels. These ambitious new targets will see the UK commit to reducing emissions at a rate faster than any major economy.

Whilst OGUK remains committed to addressing the issue of climate change, as outlined in their Roadmap 2035, today’s announcement only underlined the scale of the challenge ahead and the critical need for securing a North Sea Transition Deal.

OGUK Chief Executive Deirdre Michie OBE said: 

“The Prime Minister’s ambitious emissions announcement today reinforces the significance of securing a transformational sector deal for our changing sector.

“The UK offshore oil and gas industry has a vital role to play in supporting the UK to achieve the targets set out today. Through continuing to reduce our own carbon emissions, and by tapping into the expertise within our supply chain to develop solutions, we can help meet the country’s climate goals through developing critical solutions including carbon capture and storage and hydrogen at scale.

“This will help to unlock the full potential of this industry, including its world-class supply chain to deliver a green recovery which delivers our climate goals, supports jobs and enables our energy communities to adapt and thrive.

“We continue to work collaboratively with the UK Government on proposals for the North Sea Transition deal, creating a clear pathway to becoming a net-zero basin, whilst protecting domestic energy supplies, jobs and communities in a low carbon economy.”

Ends

Industry body OGUK is urging the oil and gas workforce to rally behind its first ever survey on diversity and inclusion (D&I) with just three weeks to go until submissions close.

With a growing focus being placed on the integration of the energy industry, attracting and retaining a diverse range of talent, as well as ensuring inclusive and collaborative ways of working, greater D&I is vital for success. The responses provided by survey participants will play a crucial role in the industry’s drive towards a more diverse and inclusive working culture, which will be key in supporting the UK’s transition to a net zero economy.

The survey has received a large volume of responses since its launch, which will provide valuable insight and help promote D&I in the oil and gas workforce. The survey will remain open for a further three weeks before closing on Thursday, 31 December. The results and insights from the survey are expected to be released in Q1 2021.

The survey is accessible to individuals currently working in the global oil and gas industry, as well as those who may have recently retired, are currently not working or between jobs, but are able to share their experiences from previous roles.

Craig Shanaghey, President, Operations Services (Europe & Africa) at Wood, and D&I Task Group Chair, said:

“Dialling up the dialogue on diversity and inclusion is going to be key in our efforts to drive greater awareness, action, and improvement. It’s critical that we capture the diverse voice of the industry in this survey in order that the focused actions driven by the report deliver the meaningful impact and change that’s needed to underpin industry’s delivery of Roadmap 2035.”

Director of the RGU Energy Transition Institute, Prof. Paul de Leeuw, who is managing the UKCS diversity and inclusion survey, said:

“The oil and gas industry is facing significant change at the moment on the back of COVID-19, the energy transition, technology developments and rapidly changing industry dynamics. To ensure the industry is set up for success, we will need to unlock all of the talent in our sector, as well as be able to attract new skills and capabilities.

“So far we have received great support for the survey from across the industry. I would really encourage everyone to compete the survey and help us build a better and more inclusive industry.”

The anonymised and confidential survey has been developed by OGUK’s Diversity and Inclusion Task Group in collaboration with Robert Gordon University (RGU). The survey can be accessed here or via OGUK’s social channels.

 

Ends

 

A flagship report published today by the leading representative body for the UK offshore oil and gas industry finds that the UK’s carbon emissions fell by an estimated 10.3 percent this year, as the economy contracted by 11.3 percent.

OGUK today said the figures confirm the scale of the challenge in securing a green recovery, urging governments to act now to ensure the UK builds a homegrown transition towards a clean energy future.

It comes as the report finds 85 percent of OGUK members throughout the supply chain expect to increase their diversification into non-oil and gas activities during the next 12-24 months due to the current market conditions. Underlining the critical capabilities within the sector to accelerate government ambitions to reach net zero carbon emissions by 2050 in the UK and 2045 in Scotland.

OGUK’s Economic Report 2020 explores the shifting economic and energy environment in this, a year of rapid change. From the impact of COVID-19 and the commercial consequences of the pandemic, to the downturn in global energy demand, this report explores the industry’s crucial but evolving future role in the energy mix.

Despite the challenges the industry faces, the report also reinforces the sector’s long-term commitments to the energy transition, with the final part of the report setting out how OGUK have further developed Roadmap 2035 into their vision for the North Sea Transition Deal.

The report shows that:

  • Global energy demand is expected to decrease by 5 percent in 2020, the UK reported 12 percent reduction in total energy demand in the first three quarters of the year
  • UK carbon emissions have fallen by an estimated 10.3 percent so far this year, while global emissions have fallen by 5.5 percent
  • At the start of 2020, there were more than £35 billion of capital investment opportunities identified within company plans over the next 10 years. Progression of these opportunities is important in the ability to continue to meet the UK’s oil and gas demand in the future.

In a world where sustainability is a priority, today’s report highlights that with a clear and supported pathway for the changing industry the UK can build a homegrown transition towards a lower-carbon future.

OGUK’s Chief Executive Deirdre Michie said:

“Today’s report highlights that we have a unique opportunity for the transition towards a lower-carbon future to be homegrown in this country and potentially exported across the world.

“2020 has been an incredibly challenging year for the oil and gas supply chain as it faced both the well-documented impact of COVID-19 and the subsequent decline in demand for energy.

“Utilising the expert technical knowledge that exists within the substantial UK oil and gas supply chain is fundamental if we are to evolve toward a lower-carbon future.

“Our Economic Report 2020 shows that oil and gas produced in the UK will continue to support energy security in the decades to come, but as part of a changing and cleaner energy mix. With the right support this industry can truly come of age and continue to make a positive contribution in this new energy landscape. However, our report makes clear that reaching this positive future will require working in the here and now to protect the jobs and companies needed to bring our climate ambitions to life.

“OGUK continue to work closely with the UK Government on proposals for a transformational North Sea Transition Deal, which will help unlock the full contribution the industry can make to achieving net-zero and the wider economic benefits.”

Ends

North Sea Transition Deal to deliver home grown transition towards government net zero targets

The UK government has today announced (Wednesday, 24 March) that it will deliver a transformational deal in partnership with the UK oil and gas industry to tackle climate change and deliver key aspects of their ten-point plan.

The deal is the first of its kind by any G7 country, setting an example of how oil and gas producing countries can move fairly towards a lower carbon future in a way which supports the economy, jobs, and energy communities across the UK.

Developed in partnership with the leading representative body for the sector, OGUK, the North Sea Transition Deal outlines over 50 government and industry actions to accelerate moves towards the government’s target of net zero emissions by 2050.

Key commitments in the North Sea Transition Deal include:

  • The sector setting early targets to reduce emissions by 10% by 2025 and 25% by 2027 and has committed to cut emissions by 50% by 2030.
  • Joint government and oil and gas sector investment of up to £16 billion by 2030 to reduce carbon emissions. This includes up to £3 billion to replace fossil fuel-based power supplies on oil and gas platforms with renewable energy, up to £3 billion on Carbon Capture Usage and Storage, and up to £10 billion for hydrogen production.
  • By 2030, the sector will voluntarily commit to ensuring that 50% of its offshore decommissioning and new energy technology projects will be provided by local businesses, helping to anchor jobs to the UK.
  • The appointment of an Industry Supply Chain Champion who will support the coordination of local growth and job opportunities with other sectors, such as Carbon Capture Usage and Storage and offshore wind.

The deal will help to:

  • Unlock up to £16bn in investment over the next decade in crucial low carbon solutions including CCUS and hydrogen
  • Support the creation of up to 40,000 new energy jobs in industrial heartlands across the UK
  • Cut UK emissions by 60 million tonnes, with 15 million tonnes of reductions from industry production by 2030 - the equivalent of annual emissions from 90% of the UK’s homes
  • Boost the world-leading infrastructure – carbon capture – the Committee on Climate Change says is necessary to tackle climate change
    • Kickstart hydrogen here in the UK, building a platform to provide an alternative for heating, heavy industry, and transport
  • Ensure energy communities like Aberdeen and Teesside can successfully transition, retaining jobs and skills and creating a more diverse and inclusive workforce
  • Reduce reliance on imported oil and gas – and be accountable for associated emissions

It comes after the sector published Roadmap 2035: a blueprint for net zero, in 2019, and was one of the first industry responses to the government’s climate change commitments.

The deal has been agreed between Business and Energy Secretary Kwasi Kwarteng on behalf of the UK Government and OGUK Chief Executive Deirdre Michie on behalf of industry.

Commenting, OGUK Chief Executive Deirdre Michie OBE said:

“The North Sea Transition Deal is a transformative partnership which will harness the expertise of the UK offshore oil and gas industry to urgently meet the country’s climate ambitions of net zero emissions by 2050.

“It will unlock billions of pounds of investment and see government and industry work together to deliver a homegrown energy transition, realising innovative low carbon solutions that can be exported globally.

“The Deal will safeguard UK energy security, providing affordable energy to millions of households, secure tens of thousands of jobs in industrial heartlands across the country and support the UK economy. It is the first deal of its kind by any G7 country and a striking example of the UK showing global leadership on climate change ahead of COP26.”

Business and Energy Secretary Kwasi Kwarteng said:

“Today, we are sending a clear message around the world that the UK will be a nation of clean energy as we build back better and greener from the pandemic.

“We will not leave oil and gas workers behind in the United Kingdom’s irreversible shift away from fossil fuels. Through this landmark sector deal, we will harness the skills, capabilities and pent-up private investment potential of the oil and gas sector to power the green industrial revolution, turning its focus to the next-generation clean technologies the UK needs to support a green economy.

“At every step on the path to net zero emissions, we will create the right conditions for new green industries to base themselves in the UK and create new high-value employment opportunities, while future-proofing existing businesses to secure the long-term viability of jobs in our industrial heartlands.”

Energy Minister Anne-Marie Trevelyan said:

“We need to urgently end our reliance on fossil fuels and through our pioneering North Sea Transition Deal we will do so without putting our economy and communities at risk.

“While the future oil and gas sector will look very different to how it does today, the industry, businesses and supply chains it supports will have a new mission to help the UK decarbonise and develop the clean technologies of the future, as we lead the green industrial revolution.”

UK Government Minister for Scotland David Duguid said:

“The oil and gas industry has already made great strides towards a greener, more sustainable future and the North Sea Transition Deal, agreed between the UK Government and industry, takes those ambitions a step further.

“The North East of Scotland has long been seen as a centre of excellence in the oil and gas industry – there’s no reason why it can’t now be seen as a global centre of excellence for energy transition.

“This is not just about making the transition from hydrocarbons to renewables. It’s about a transition of jobs, skills and expertise as well.

“The UK Government has worked consistently and intensively with the industry, and we will continue to do so, to make progress on a scientific, data and evidence-led basis.”

Chief Executive of the Oil & Gas Authority, Dr Andy Samuel said:

“This deal marks an exciting new chapter for the North Sea, confirming energy transition in action. It is the culmination of a lot of work between government, industry and the OGA. As long as oil and gas remain part of the UK’s energy mix, they must be produced more cleanly and in line with net zero.

“Our role includes monitoring and holding industry to account on its emissions reduction performance. The recent funding for a number of energy transition projects is very timely. We are happy to be supporting projects like Acorn, Hynet, Net Zero Teeside and Zero Carbon Humber, along with the Energy Transition Zone and the Global Underwater Hub.

“Our studies show how the UK Continental Shelf can provide 60% of the UK’s overall carbon reduction requirements to meet Net Zero 2050, through electrification, carbon capture and storage, hydrogen and offshore wind.”

Oil and gas industry welcomes Chancellors’ Budget measures to support green energy transition

The UK oil and gas industry has welcomed some of the measures announced by the Chancellor in today’s Budget, adding that now close cooperation with the sector is essential to maximise its world-leading expertise and assure a successful green energy transition.

The leading representative body for the sector OGUK said the combination of taxation and investment measures offers a potentially strong route to transition energy and employment ahead of the much anticipated and crucial North Sea Transition Deal that we are negotiating with Government.

OGUK Chief Executive Deirdre Michie, said:

“We welcome the measures around supporting green energy innovation set out by the Chancellor in his Budget Statement today.

“We look forward to engaging with his department on the review of Research & Development tax relief, which can be a key driver of success in the field of green technology.

“The investment towards the Aberdeen Energy Transition Zone, Global Underwater Hub and Hydrogen Hub in Anglesey are encouraging starts to this country’s journey to a low-carbon future that also supports climate goals, employment and energy security.

“Central to all of this is the North Sea Transition Deal reaffirmed by the Chancellor today. Having powered the country for over 50 years, the UK’s oil and gas sector’s energy expertise is crucial to developing the green innovation required to see the UK achieve net-zero emissions by 2050.

“Designed properly, the Deal should be an exciting blueprint to meeting that goal, whilst creating tens of thousands of high-quality jobs and attracting billions of pounds of investment into parts of the country that need it most. We look forward to successfully implementing it in partnership with the Government and making the UK a global hub for green energy technology.”

Ends

OGUK Conference to discuss Health, Safety and Environment in a post-pandemic world.

The leading representative body for the UK oil and gas industry, OGUK, has announced that tickets are now live for its first-ever wholly digital Health, Safety & Environment Conference. As we follow on from the tumultuous events of 2020, this year‘s conference asks the question, ‘Where next for our industry?’

The event, titled ‘Looking back to move forward – where next for HSE?’ will be held on 24-25 March 2021. OGUK is once again moving beyond the confines of a traditional conference, providing a digital platform for ideas and discussion about the future of oil and gas.

Over the two-day event, OGUK will be joined by leading voices and world-class experts in the fields of health, safety, and environment to reflect on the impact of the past 12 months, as well as looking forward to 2021 and beyond, asking what industry must do to continue improving our HSE performance.

Keynote speakers include Deirdre Michie (OGUK), Sarah Newton (Chair, HSE), Fuzzy Bitar (BP), Steve Hunt (Stork), and Dr Martin Valenti (Scottish Enterprise). OGUK are also delighted to announce that they will be joined by Sir David Spiegelhalter OBE FRS, British statistician and Winton Professor of the Public Understanding of Risk in the Statistical Laboratory at the University of Cambridge.

OGUK Health, Safety & Environment Director, Trevor Stapleton commented:

“After a year like no other for our industry, this year’s HSE Conference provides us with a unique opportunity to gather leading industry voices to take stock on the past 12 months and to discuss what HSE looks like for our sector as we navigate toward a post-pandemic world.

“We’re delighted to be joined by some of the industry’s pioneering and expert thinkers on the topic of HSE, and I look forward to welcoming colleagues from across the sector to this event.”

To book your place, or to view sponsorship and exhibition opportunities, please visit https://ogukhseconference.co.uk/

ENDS

Equinor Senior Vice-President named Co-chair of OGUK board

5 February 2021

The leading representative body for the UK oil and gas industry has today announced the appointment of a new co-chair to its board, as the sector focuses on the industry’s recovery whilst meeting net-zero targets for 2021.

Arne Gürtner, Senior Vice President UK & Ireland Offshore at Equinor has now assumed this role bringing with him a wealth of industry experience. In this capacity, Arne will work with Contractor Co-chair, Phil Simons, VP North Sea & Canada, Subsea 7.

Across the UK, Equinor has a broad energy portfolio of oil, gas, offshore wind and low carbon projects. Based in Equinor’s UK operations headquarters in Aberdeen, Arne leads the organisation supporting Equinor’s UK and Ireland upstream activities, which includes the Mariner development and Rosebank, one of the largest undeveloped resources on the UKCS.

Gürtner has held a broad variety of leadership roles across Equinor, including his previous position of Vice President for Technical Excellence in a global business function, and brings experience from project development, integrity management and process safety in operations from the UK and Norwegian Continental Shelves, as well as global research and technology development. Gürtner also currently holds the position of OGA Asset Stewardship Task Force Co-Chair.

Arne Gürtner takes over from Phil Kirk, who is stepping down from the role.

Deirdre Michie, OGUK’s chief executive, commented:

“We’re delighted to have Arne step into the role as co-chair of the OGUK board. The industry experience he has will be vital as we seek to manage our way successfully through the challenges brought by the pandemic while seeking to deliver our net-zero ambitions.

“I’d also like to take the opportunity to thank Phil Kirk for all of his support. His insight, steer and guidance has been invaluable, and we are delighted that he will remain on the board.

“We value the different perspectives from across the industry, in our work to deliver Roadmap 2035. This diversity in thought is key to finding solutions for low carbon oil and gas production, whilst doing everything we can to support our world-class but fragile supply chain and protect the skills of our people for the future.”

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Trio of board appointments as OGUK looks ahead to 2021 ambitions

The leading representative body for the UK oil and gas industry, OGUK, has appointed three major business leaders to its board as the sector sharpens its focus on the industry’s recovery and meeting net zero targets as it looks ahead to the new year.

Jose Luis Muñoz is CEO of Repsol Sinopec Resources UK Limited. José Luis joined Repsol in 2005 as part of the Strategy and Corporate Development team and was instrumental in the acquisition of the global operations of the former Talisman Energy business. He then went on to drive the post-merger integration of the ex-Talisman operations, ensuring a smooth transition.

Since 2017 and prior to his appointment as CEO, José Luis was Repsol representative within the Executive Committee of Repsol Sinopec Resources UK.

Andy Hessell has more than 30 years’ experience in the UK energy industry specialising in commercial, strategy and business development roles in the UK and overseas.  Over the past five years, as Managing Director, Andy has been successfully growing Kellas Midstream, an innovative independent company that owns and manages critical North Sea infrastructure.

Prior to joining Kellas, Andy enjoyed a 26-year career with BP in a variety of leadership positions including North Sea region Chief Financial Officer and Vice President Commercial Operations, North Sea & Angola.

Also joining the board is Mikki Corcoran, Managing Director of Schlumberger Europe. Prior to this role she worked in North America Offshore as General Manager Drilling, and before that, as Global Account Director for Schlumberger.

During her 20-year career in the Oil & Gas industry with Schlumberger, Mikki has held a variety of management positions, including HR, Operations, Sales & Commercial, and Supply Chain, in Norway, United States, Asia and Europe.

Deirdre Michie, OGUK’s chief executive, commented:

“The diverse experience and knowledge that José, Mikki and Andy bring to the OGUK Board will be a great asset as our industry continues to tackle a challenging landscape of low commodity prices and the coronavirus pandemic, while at the same time seeking to support the UK’s cleaner climate ambitions as we look to 2021 and the challenges and opportunities it will bring.

“This diversity of perspectives from across industry is critical as we work to deliver Roadmap 2035, finding solutions for low carbon oil and gas production while doing everything we can to revive our world-class but fragile supply chain and protect the skills of our people for the future.“

 

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Scottish Government’s Hydrogen Policy Statement emphasises need for sector deal, OGUK says

The leading UK oil and gas industry body OGUK has today welcomed the Scottish Government’s Hydrogen Policy Statement, which recognises that the critical role the country’s oil and gas industry has to play in realising a hydrogen economy.

Commenting, OGUK Sustainability Director Mike Tholen said:

“The Scottish Government’s Hydrogen Policy Statement released today recognises the critical role our industry has to play in creating a hydrogen industry, both through the expertise of our supply chain and the talents of our workforce, and in the opportunities presented by repurposing of our infrastructure.

“Investing in these new energy resources will be key to unlocking the challenge of achieving net-zero emissions across the economy. Many businesses within our industry are already actively involved in the development of such hydrogen projects, recognised by the Committee on Climate Change as an essential part of the energy mix in years to come.

“While it’s encouraging to see investments like this, today’s Hydrogen Policy Statement reiterates the importance of securing a sector deal for our industry. We will continue to work at pace with the Scottish government to ensure that our supply chain is supported throughout the transition, securing jobs and the energy supply, whilst supporting our energy communities.”

 

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Support for the supply chain vital throughout Just Transition says OGUK

The leading representative body for the UK offshore oil and gas industry has today (Wednesday 14 December) responded to the Scottish Government’s updated Climate Change Plan, which recognises the value the oil and gas industry can make in stepping up the transition to net-zero.

Commenting on the updated Climate Change Plan, OGUK Chief Executive Deirdre Michie OBE said:

“The Scottish Governments’ Climate Change Plan recognises the critical role of the country’s changing oil and gas industry in accelerating moves towards a low carbon future.

“Through bringing to life hydrogen and carbon capture, and through harnessing the expertise and skills of our talented people, we can continue to provide lower carbon and affordable energy to millions of people while helping unlock the energy system of the future.

“We keenly await the Scottish Government’s revised Energy Strategy in 2021. However, given the significance of our industry to Scottish jobs and the economy, as well as the triple threat of COVID-19 we’ve faced this year, we must continue to work at pace with the Scottish government to ensure that our supply chain is supported throughout the Just Transition.

“We’re committed to delivering our net-zero goals through reducing our own emissions, as detailed in Roadmap 2035, while many companies are already actively supporting the new CCUS and hydrogen projects recognised by the Committee on Climate Change as essential. We will continue to work with both governments to secure a vital North Sea Transition deal in the first half of 2021, safeguarding jobs and supporting our energy communities in the journey to net-zero.”

 

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Prime Minister’s emissions targets reinforce the need for sector deal

The leading UK oil and gas industry body OGUK has today reinforced the significance of securing a sector deal, in light of new emission targets announced by the Prime Minister today.

The government’s plan commits to reducing the UK’s carbon emissions by at least 68% by 2030, based on 1990 levels. These ambitious new targets will see the UK commit to reducing emissions at a rate faster than any major economy.

Whilst OGUK remains committed to addressing the issue of climate change, as outlined in their Roadmap 2035, today’s announcement only underlined the scale of the challenge ahead and the critical need for securing a North Sea Transition Deal.

OGUK Chief Executive Deirdre Michie OBE said: 

“The Prime Minister’s ambitious emissions announcement today reinforces the significance of securing a transformational sector deal for our changing sector.

“The UK offshore oil and gas industry has a vital role to play in supporting the UK to achieve the targets set out today. Through continuing to reduce our own carbon emissions, and by tapping into the expertise within our supply chain to develop solutions, we can help meet the country’s climate goals through developing critical solutions including carbon capture and storage and hydrogen at scale.

“This will help to unlock the full potential of this industry, including its world-class supply chain to deliver a green recovery which delivers our climate goals, supports jobs and enables our energy communities to adapt and thrive.

“We continue to work collaboratively with the UK Government on proposals for the North Sea Transition deal, creating a clear pathway to becoming a net-zero basin, whilst protecting domestic energy supplies, jobs and communities in a low carbon economy.”

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Last call for the industry workforce to voice opinion on D&I in the sector 

Industry body OGUK is urging the oil and gas workforce to rally behind its first ever survey on diversity and inclusion (D&I) with just three weeks to go until submissions close.

With a growing focus being placed on the integration of the energy industry, attracting and retaining a diverse range of talent, as well as ensuring inclusive and collaborative ways of working, greater D&I is vital for success. The responses provided by survey participants will play a crucial role in the industry’s drive towards a more diverse and inclusive working culture, which will be key in supporting the UK’s transition to a net zero economy.

The survey has received a large volume of responses since its launch, which will provide valuable insight and help promote D&I in the oil and gas workforce. The survey will remain open for a further three weeks before closing on Thursday, 31 December. The results and insights from the survey are expected to be released in Q1 2021.

The survey is accessible to individuals currently working in the global oil and gas industry, as well as those who may have recently retired, are currently not working or between jobs, but are able to share their experiences from previous roles.

Craig Shanaghey, President, Operations Services (Europe & Africa) at Wood, and D&I Task Group Chair, said:

“Dialling up the dialogue on diversity and inclusion is going to be key in our efforts to drive greater awareness, action, and improvement. It’s critical that we capture the diverse voice of the industry in this survey in order that the focused actions driven by the report deliver the meaningful impact and change that’s needed to underpin industry’s delivery of Roadmap 2035.”

Director of the RGU Energy Transition Institute, Prof. Paul de Leeuw, who is managing the UKCS diversity and inclusion survey, said:

“The oil and gas industry is facing significant change at the moment on the back of COVID-19, the energy transition, technology developments and rapidly changing industry dynamics. To ensure the industry is set up for success, we will need to unlock all of the talent in our sector, as well as be able to attract new skills and capabilities.

“So far we have received great support for the survey from across the industry. I would really encourage everyone to compete the survey and help us build a better and more inclusive industry.”

The anonymised and confidential survey has been developed by OGUK’s Diversity and Inclusion Task Group in collaboration with Robert Gordon University (RGU). The survey can be accessed here or via OGUK’s social channels.

 

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The UK can build a homegrown transition towards clean energy future, OGUK’s Economic Report shows

A flagship report published today by the leading representative body for the UK offshore oil and gas industry finds that the UK’s carbon emissions fell by an estimated 10.3 percent this year, as the economy contracted by 11.3 percent.

OGUK today said the figures confirm the scale of the challenge in securing a green recovery, urging governments to act now to ensure the UK builds a homegrown transition towards a clean energy future.

It comes as the report finds 85 percent of OGUK members throughout the supply chain expect to increase their diversification into non-oil and gas activities during the next 12-24 months due to the current market conditions. Underlining the critical capabilities within the sector to accelerate government ambitions to reach net zero carbon emissions by 2050 in the UK and 2045 in Scotland.

OGUK’s Economic Report 2020 explores the shifting economic and energy environment in this, a year of rapid change. From the impact of COVID-19 and the commercial consequences of the pandemic, to the downturn in global energy demand, this report explores the industry’s crucial but evolving future role in the energy mix.

Despite the challenges the industry faces, the report also reinforces the sector’s long-term commitments to the energy transition, with the final part of the report setting out how OGUK have further developed Roadmap 2035 into their vision for the North Sea Transition Deal.

The report shows that:

  • Global energy demand is expected to decrease by 5 percent in 2020, the UK reported 12 percent reduction in total energy demand in the first three quarters of the year
  • UK carbon emissions have fallen by an estimated 10.3 percent so far this year, while global emissions have fallen by 5.5 percent
  • At the start of 2020, there were more than £35 billion of capital investment opportunities identified within company plans over the next 10 years. Progression of these opportunities is important in the ability to continue to meet the UK’s oil and gas demand in the future.

In a world where sustainability is a priority, today’s report highlights that with a clear and supported pathway for the changing industry the UK can build a homegrown transition towards a lower-carbon future.

OGUK’s Chief Executive Deirdre Michie said:

“Today’s report highlights that we have a unique opportunity for the transition towards a lower-carbon future to be homegrown in this country and potentially exported across the world.

“2020 has been an incredibly challenging year for the oil and gas supply chain as it faced both the well-documented impact of COVID-19 and the subsequent decline in demand for energy.

“Utilising the expert technical knowledge that exists within the substantial UK oil and gas supply chain is fundamental if we are to evolve toward a lower-carbon future.

“Our Economic Report 2020 shows that oil and gas produced in the UK will continue to support energy security in the decades to come, but as part of a changing and cleaner energy mix. With the right support this industry can truly come of age and continue to make a positive contribution in this new energy landscape. However, our report makes clear that reaching this positive future will require working in the here and now to protect the jobs and companies needed to bring our climate ambitions to life.

“OGUK continue to work closely with the UK Government on proposals for a transformational North Sea Transition Deal, which will help unlock the full contribution the industry can make to achieving net-zero and the wider economic benefits.”

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