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One of the newest contractors in the UK North Sea was among the companies that set out their stalls to potential suppliers at a major oil and gas industry event in Aberdeen yesterday (Wednesday, November 1).

WorleyParsons was one of 11 companies and organisations to present at Share Fair – an Oil & Gas UK event designed to shine a light on potential new business and diversification opportunities for the UK oil and gas supply chain.

Sponsored by Stork – a Fluor company, the Aberdeen Exhibition and Conference Centre event attracted around 500 delegates.

Just days after confirming it had completed its £228 million takeover of Amec Foster Wheeler’s North Sea assets, WorleyParsons revealed the range of business opportunities it has in the North Sea, and also where supply chain expertise developed here could be deployed in their projects around the world.

Creating greater value rather than focusing on lowest cost was a key theme from Bibby Offshore, which advised how supply chain companies should best engage in its tender processes to deliver services.

Total E&P UK’s presentation focused on three major activity areas:  the Central Graben Area, Northern North Sea and West of Shetland.

As part of its forward plans pitch, Apache set out the expertise and technologies it needs is seeking to mitigate the challenges around heavy oil.

Repsol Sinopec highlighted its need for innovative technology and services to maximise returns on its operations and for decommissioning.

Also presenting were the Oil & Gas Technology Centre and representatives from the nuclear, offshore renewables and railways sectors.

Ken Cruickshank, Supply Chain Manager of Oil & Gas UK, said: “It’s been another successful Share Fair bringing suppliers and major purchasing companies together in one place to discuss how they can collaborate on future projects.  Many potential new business opportunities for the supply chain were highlighted, including £48 billion that is expected to be invested in the railways over the coming years and 18 new offshore wind projects in the pipeline.  Our supply chain has developed world class expertise in oil and gas – there is significant opportunity to capitalise on that and diversify into new sectors.”

ENDS

 

Notes to Editors:

 

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

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

Commenting on the UK Government’s Clean Growth Strategy, Mike Tholen, Upstream Policy Director with Oil & Gas UK, said:

“Oil & Gas UK welcomes the Government’s publication of the Clean Growth Strategy. The UK offshore oil and gas industry strives to reduce its emissions and CO2 emissions from production have fallen by 30% since 2000 – now accounting for just 3% of total domestic CO2 emissions. This downward trend is expected to continue.

“Oil and gas play a vital role in the UK’s energy mix with our own domestic resources meeting over half of our demand in 2016. Their importance in the UK’s energy mix will continue for decades to come with the Department for Business, Energy and Industrial Strategy indicating they will continue to meet approximately two thirds demand by 2035.

“With up to 20 billion barrels of oil and gas still to recover from the UK Continental Shelf, industry is well placed to provide an indigenous resource to help meet this energy need, whilst supporting hundreds of thousands of jobs across the UK.

“Additionally, meeting demand with domestic hydrocarbons eases our reliance on international resources, ensures we protect security of energy supply and mitigates against carbon leakage.

“Gas has transformed the UK’s power sector in recent years, with a significant coal-to-gas switching in the power mix achieving cost-effective emissions reductions. This switching made a major contribution to an estimated 20% fall in UK power sector emissions in 2016, underlining the important role gas should continue to play as part of a cost-effective decarbonisation of the energy system.

“Oil & Gas UK welcomes the Government’s commitment to technology in the strategy, especially with regards to carbon abatement measures such as Carbon Capture, Usage and Storage. Oil & Gas UK looks forward to working with the Government to see how these technologies can further reduce emissions across the economy.”

ENDS

Notes to Editors:

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

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

 

New data providing more insight into the employment picture of the UK offshore oil and gas industry is published today (7 October) by Oil & Gas UK – the sector’s trade body.

The people working on offshore installations are a key focus of the Workforce Report which reveals the areas they travel from across the UK to get to their jobs offshore and how many are based in different regions of the UK Continental Shelf.

The report also looks at total employment for the industry and shows the regions across the UK where jobs are based.  Also highlighted are the other diverse industries – including financial services, retail and construction – where jobs are supported by the UK oil and gas sector.

The report says:

  • Industry supports more than 302,000[1] jobs with almost 60% of those in England, 38% in Scotland and the remainder across Northern Ireland and Wales.
  • The latest employment estimate is 160,000 lower than the peak of more than 460,000 jobs in 2014 – but the pace of contraction has slowed.
  • More than 52,000 people travelled offshore in the UK in 2016.
  • Of those, almost 24,000 are the core offshore workforce – people who spend more than 100 days on installations on the UK Continental Shelf (UKCS).
  • The number of core workers – directly linked to industry activity levels and spend – has seen a reduction of around 5,300 (18%) since 2014, when capital investment was at its peak, before the downturn.
  • Activity growth west of Shetland has resulted in the region seeing the greatest rise in offshore employment – more than doubling since 2014 to 4,304 offshore workers last year.
  • There has been a 42% increase in production per core worker since 2014, driven by industry efficiency improvements as well as higher volumes produced from redeveloped fields and new start-ups.
  • As the offshore population contracts, the average age of offshore workers has increased slightly by two years over the last two years to 42.7 – but is still roughly in line with the UK average.
  • Around 15% of the offshore workforce are non-British citizens – about half of whom are from other EU countries.
  • Other sectors where jobs are supported by the UK oil and gas industry include manufacturing, construction, metal products, finance, retail, and civil engineering, highlighting the economic reach of this industry and its importance to the wider UK economy.

Report author Alix Thom, Workforce Engagement and Skills Manager with Oil & Gas UK, said: “Our report sheds more light on the employment of an industry that has seen a significant contraction because of the global downturn.

“While employment has fallen over the last two years, the rate of contraction appears to be slowing and we are seeing more positive signs, such as increased activity west of Shetland.

“With billions of barrels of oil and gas still to be recovered from the North Sea, we need more fresh investment into the basin to drive new activity and help safeguard the hundreds of thousands of UK wide jobs our sector continues to support.”

The report can be seen here.

ENDS

Notes to Editors:

The Workforce Report 2017 expands on the industry employment data published within Oil & Gas UK’s Economic Report 2017.

It provides more detail on the total employment supported across the whole upstream industry, both on and offshore, and draws on the Vantage Personnel on Board data to look exclusively at the breakdown of the offshore workforce.

Meanwhile, as part of its effort to attract more investment into the UK Continental Shelf and drive new activity and help safeguard jobs, Oil & Gas UK has submitted its asks of Treasury from the forthcoming Autumn Budget. The trade body is calling for:

  • Continued public commitment to the Driving Investment Plan – as this provides investors with the required fiscal predictability and confidence to invest in the UKCS.
  • Enabling Transferable Tax History – allowing a part of tax history to transfer from the seller to the buyer of North Sea oil and gas assets, which allows assets to move to those most suited to extend the productive life of the basin.
  • Support for the supply chain – by improving access to finance and recognition of competitiveness, attracting new investment.

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

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

[1] The number covers the full spectrum of employment – direct, indirect, and induced jobs.

  • Direct – those employed by companies extracting oil and gas.
  • Indirect – those who provide goods and services for an oil and gas company.
  • Induced – local economy jobs that benefit from the sector eg hospitality.

Responding to Statoil’s announcement that it has made an oil discovery in the Verbier prospect on the UK Continental Shelf, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“This is good news from Statoil and partners and we now really hope that the find proves to be commercially appealing and proceeds to development.

“It’s also another signal of confidence in the future of the UK Continental Shelf and the kind of development that should further persuade investors of the benefit of putting their money into this basin which still holds billions of barrels of oil and gas.”

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

 

 

Mexico’s offshore oil and gas sector will gain insights from the UK Continental Shelf at a key event taking place today (3 October).

The British Chamber of Commerce in Mexico is hosting an Energy Day in the country – bringing together around 600 of Mexico’s leading energy professionals to discuss what’s next for the country’s sector.

Stephen Marcos Jones, Director of Business Excellence with Oil & Gas UK, is one of the key speakers at the event which comes at a defining period in the history of energy in Mexico, its connectivity to energy across North America and the ways that refined products are distributed and energy is traded.

“This is an excellent opportunity to hear more about what’s happening in Mexico following reform a few years ago which has enabled local and foreign private investment into the energy sector after decades of the industry being nationalised,” said Stephen Marcos Jones.

“I’ll be giving an overview of the UK Continental Shelf and covering issues such as the efficiency measures industry is taking to manage its way through the downturn, as well as the steps Government have taken to make the basin one of the most fiscally attractive regimes in the world,” added Mr Marcos Jones, who is also attending tomorrow’s ‘farm out’ of exploration and extraction licences.

“This is also another valuable opportunity to highlight the capabilities and expertise of our world-class supply chain which we are trying to help diversity into global markets.”

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

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

Commenting as the Chancellor of the Exchequer Philip Hammond visits Aberdeen, Oil & Gas UK Chief Executive Deirdre Michie said: “It’s good to see the Chancellor here in Aberdeen. His visit sends a strong message of support for industry and his funding announcement to help stimulate exploration – that has been particularly hard hit by the downturn – is a welcome boost.

“I look forward to meeting the Chancellor and will use this opportunity to update him on the progress industry has made in terms of improving costs and efficiency.

“The UK Government has already made some positive changes to our fiscal regime which have helped reposition the basin as globally competitive.

“Building on this, we need HM Treasury to maintain its commitment to the Driving Investment plan and also enable transferable tax history in the Autumn Budget, which we believe will further unlock the transfer market for late-life assets, encourage more investment, and delay decommissioning for as long as possible with the associated benefit to the Exchequer and the UK.

“We are also seeking a strong partnership with Government to support our world-class supply chain and help it capture a greater share of the export market.

“This is an industry that makes an extraordinary contribution to the UK economy helping meet our energy needs, making an estimated contribution of £17 billion to the UK’s balance of trade and supporting 300,000 jobs across the UK.  Our supply chain also exports almost £12 billion exports of goods and services around the globe.

“With the right support from Government, and a relentless focus on efficiency from industry, we can maximise our domestic resources, while anchoring our supply chain here in the UK for the long-term.”

Notes to Editors

Oil & Gas UK has submitted its asks of Treasury from the forthcoming Autumn Budget. The trade body is calling for:

  • Continued public commitment to the Driving Investment Plan – as this provides investors with the required fiscal predictability and confidence to invest in the UKCS.
  • Enabling Transferable Tax History – allowing a part of tax history to transfer from the seller to the buyer of North Sea oil and gas assets, which allows assets to move to those most suited to extend the productive life of the basin.
  • Support for the supply chain – by improving access to finance and recognition of competitiveness, attracting new investment.

 

The trade body for the UK offshore oil and gas industry has given its response to the Brexit, trade and the economic impacts on UK Cities report from the Centre for Economic Performance and Centre for Cities at the London School of Economics.

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “We have yet to see details of this report but would welcome discussion with the authors. We commissioned our own study into the possible cost of trade, where our workforce comes from, and the potential impact and opportunities of Brexit. It found that the tariff and trade impact on oil and gas producers would likely be less severe than specific areas of the supply chain that trades goods such as chemicals and plastics internationally.

“We briefed Government on our findings and will continue to work with Government to further understand the potential impact on our sector.

“Industry has worked hard to boost productivity and reduce operating costs. While we are globally competitive, we are sensitive to extra burdens whether that be cost-related or restrictions on movement of personnel needed for critical operations. As such, Government should be aware of the tariff and non-tariff barriers which may be presented.”

 

The latest annual health and safety data published for the UK offshore oil and gas industry signals a continued trend of improving performance despite 2016 being a challenging year, says Oil & Gas UK.

The sector’s trade body today (July 27) publishes its Health & Safety Report 2017 – capturing the significant trends, issues and themes of the sector’s performance on the UK Continental Shelf during 2016.

Highlights of the report – which demonstrates that industry’s continued focus on safety is delivering –  include:

  • Dangerous occurrences – which have the potential to cause serious incidents and include oil and gas releases, dropped objects and fires and explosions – are the lowest on record
  • Six operators had no dangerous occurrences in 2016
  • Major and significant oil and gas releases are at an all-time low
  • There were 113 reportable injuries in over 50 million manhours worked offshore – the second lowest number of reportable injuries since the mid-1990s when the safety regulations came into force
    • the most common type of injury were strains and sprains
    • the three-year average non-fatal injury rate is less than half of construction and transport sectors
  • Nine operators had no reportable injuries in 2016
  • Safety critical maintenance backlog continues to reduce

Tragically, there was a fatality in 2016, which occurred during the unpacking of a container offshore, underlining how this major hazard industry can never let up on its drive to achieve the highest levels of safety performance.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “Our report reflects the continued industry-wide effort we make to maintain focus on the safety of our people and operations. That effort is paying back in the form of an improving overall performance.

“Nevertheless, 2016 was a year with fatalities in the UK and Norwegian sectors. The helicopter tragedy off Norway, which took the lives of 13 people, and a further non-fatal helicopter incident in the UK, has led to continued scrutiny of aviation safety. All such incidents are investigated and the findings shared across the sector.

“While these incidents cast a shadow over the year, it is important to recognise where progress has been made.

“Process safety incidents – which includes oil and gas releases, fires or explosions and dropped objects – are at the lowest on record. There has been a sustained overall downward trend in the total number of these hydrocarbon releases reported since a peak in 2004. Prevention of releases remains an absolute priority.

“We are also continuing to see reductions in the safety-critical maintenance backlog – an area industry has worked hard to address.

“The collaborative work across industry to improve safety performance is delivering. However, to drive further improvement, we must maintain our focus and collective determination and ensure that safety remains at the heart of all our operations.”

Oil & Gas UK’s Health & Safety Report 2017 , an infographic and a video of Health & Safety Manager Trish Sentence talking about the report can be downloaded here.

Oil & Gas UK has welcomed the announcement today (26 June) from EnQuest that first oil from the Kraken development has been delivered.

Deirdre Michie, Chief Executive, said: “This is very welcome news from EnQuest and further confirmation of the potential of the UK Continental Shelf. The pursuit of oil and gas is always challenging and EnQuest has taken a variety of innovative and efficient steps successfully to complete the large Kraken development project while keeping costs down. Effective partnership working with the supply chain has also played an important part. First oil from Kraken is good for EnQuest and good for our industry. It demonstrates once again what the North Sea can still deliver with the right approach and investment.”

There is still time to shine a spotlight on the people and companies doing their best for offshore health and safety after organisers extended the deadline for entries to this year’s Offshore Safety Awards.

The closing date for nominations to the event – organised by Oil & Gas UK and Step Change in Safety, with Maersk Oil as principal sponsor – has been extended to 12 noon on Friday 2 June.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “We had a really high calibre of entries to our awards when they were held, in their new format, for the first time last year. We’re seeing the same again this year and wish to ensure as many people as possible can submit their entries before judging gets underway in June.”

Les Linklater, Executive Director of Step Change in Safety, said: “The Offshore Safety Awards are all about sharing and learning from the success of others. This is something our industry is embracing and we are really trying to encourage as many people as possible to participate and nominate in this year’s awards. We know there are some amazing organisations and individuals out there who are hugely successful in the safety space and we want to hear from them, and celebrate their achievements.”

There are six categories in the Awards – open to all companies and organisations operating in or involved with UK offshore operations – and they are:

  • Sharing and Learning
  • Workforce Engagement
  • Innovation in Safety
  • Safety Representative of the Year
  • Safety Leadership
  • Operational Integrity

A panel of judges and those attending the awards will decide the winner of each category at the interactive event which takes place on Wednesday 23 August at the Aberdeen Exhibition and Conference Centre.

Following the announcement by Repsol Sinopec Resources UK that first oil has begun to flow from the Shaw  field, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“This is a tremendous achievement by Repsol Sinopec Resources UK and their commitment to the North Sea is very welcome indeed.

“This is a major redevelopment in an area of the North Sea that has been producing for many years. It combines new and mature field activities that will extend the Montrose area’s productive life and demonstrates the potential that can still flow from the UK Continental Shelf with the right investment.

“At the project’s inception, HM Treasury worked closely with the industry to begin to make the tax regime more competitive. Since then, the tax regime for this basin has improved substantially and is now one of the most fiscally competitive in the world. We look forward to more investment of the kind announced today in order to unlock the billions of barrels of oil and gas that we believe this basin still holds.”

The trade body for the UK oil and gas industry has written to the Prime Minister highlighting research findings that assess the potential impact and opportunities of Brexit on the sector.

The study – commissioned by Oil & Gas UK – looked at the possible cost of trade for the sector and illustrates where the UK sector’s workforce comes from.

On trade costs, the data shows that:

  • Around £73 billion worth of oil and gas related trade (fuel and non-fuel) flows between the UK and the rest of world
  • Approximately £61 billion of this is related to traded goods, which may be subject to tariffs (services account for the remaining £12 billion)
  • Under the current ‘status-quo’ scenario with the UK as part of the EU, the total cost of this trade in goods is around £600 million per annum (less than 2% of the total value of trade subject to tariffs)
  • Under a worst-case scenario where the UK reverts to WTO rules with the EU and the rest of the world, the likely cost of trade will almost double to around £1.1 billion per annum; assuming trading behaviours remain unchanged
  • If the UK can negotiate minimal tariffs with the EU and improved tariffs with the rest of the world, the total cost of trade could fall by around £100 million per annum to £500 million

On labour movement, the data shows:

  • Of those directly employed by the oil and gas industry in the UK, 90% are UK national, 5% are EU workers from countries other than the UK and 5% are non-EU
  • Around 70% of the EU workers in the industry are skilled, with one in two holding managerial roles
  • Oil & Gas UK understands that these skilled roles filled by EU workers are often critical for projects and asks Government to consider these posts when developing domestic immigration policy.

To minimise any Brexit cost burden and to secure beneficial trading conditions, Oil & Gas UK recommends the UK Government prioritises the following during negotiations:

  • Frictionless access to markets and labour
  • Maintaining a strong voice in Europe
  • Protecting energy trading and the internal energy market

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “Oil & Gas UK is an apolitical organisation representing a large and diverse membership where there will be a variety of views.  While the trade body can’t take a position on Brexit, we commissioned the research because we need to understand the possible impact on our industry – and the possible opportunities – from exiting the EU.

“We also identified other EU policy issues as critical to the oil and gas industry and will require negotiation with European counterparts, as well as discussions at the domestic level between Government, regulators and industry during the Brexit process.

“During the global industry downturn, our industry has continued to focus on increasing its production efficiency, and on its unit operating costs which have improved by almost 50%.

“We are becoming a more globally competitive industry, but we continue to be very sensitive to any additional burdens either in relation to cost, or restrictions on the movement of key personnel required for critical operations.

“There are still up to 20 billion barrels of oil and gas to recover from the UKCS and, if properly supported, our already world-class supply chain could double its turnover by 2035.

“Oil & Gas UK would welcome discussions with Government officials to outline industry’s concerns and opportunities and help identify a path forward during Brexit negotiations.

“Our request of Government is that any change, whether domestic or European, is managed in a manner that minimises risk to the oil and gas industry and provides predictability and clarity wherever possible, through constructive dialogue and consultation.”

The letter was sent to the Prime Minister on Monday.

ENDS

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

The hunt begins again for the men, women and companies going the extra mile for safety in the UK oil and gas industry. 

Individuals and businesses from across the sector are being encouraged to enter this year’s Offshore Safety Awards taking place at the Aberdeen Exhibition and Conference Centre on August 23.

Jointly organised by Oil & Gas UK and Step Change in Safety with Maersk Oil as principal sponsor, the annual safety awards celebrate the people and companies striving to make the UK Continental Shelf as safe as possible.

Nominations for the six categories have opened with a new addition of the Operational Integrity Award –  which recognises a company’s understanding and effective application of risk management in delivering safe operations.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said:

Mick Borwell, Health, Safety and Environment Policy Director, Oil & Gas UK

“All the winners and finalists in 2016 were extremely worthy and demonstrated high standards and excellent work in promoting safety in their own workplace and across the industry. We look forward to seeing this year’s entries and hope to attract even more people and workplaces where their efforts are having a positive impact on the sector.”

The awards – hosted in a theatre-style ceremony – will see the audience participating in the judging. Finalists will film video selfies and explain on the day what they have been doing to contribute toward safety.

Les Linklater, Executive Director with Step Change in Safety, said: “The offshore and onshore workforce is key to the prevention of major accidents and we should celebrate their hard work and dedication to safety – that’s what is at the heart of Offshore Safety Awards.

“The ceremony also gives the industry an opportunity to share and learn from one another, while also honouring and recognising the important people who play their part in continually improving our safety performance.

“Last year’s award ceremony was well received and we look forward to hosting the next one in August.”

All entries must be submitted by 26 May with the finalists being announced at the end of June.  The categories in the Offshore Safety Awards are:

Mick Borwell with some of last year’s winners.

•        Safety Leadership – for an inspirational leader who motivates and engages their team to work safely.
•        Safety Representative of the Year – for an enthusiastic and committed safety rep that is driving the safety agenda at their worksite.
•        Innovation in Safety – for a company which has put in place a clever process or technique to improve safety either across an organisation or at an individual worksite.
•        Workforce Engagement – for an individual or team which has actively embraced engagement with its workers on safety matters, showing how a commitment to worker involvement in safety has contributed to an improvement in safety performance.
•        Operational Integrity –  for an individual or team which has delivered increased efficiency or understanding of risk by putting in place sensible and proportionate risk management solution(s).
•        Sharing and Learning – for an individual/team or company that can demonstrate a learning and sharing culture either within their organisation, or who has made a significant contribution to health and safety through active participation in, or engagement with Oil & Gas UK or Step Change in Safety.

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

 

Welcoming today’s announcement (31 January) that Shell has agreed to sell a package of UK North Sea assets to Chrysaor in a multi-billion pound deal, Oil & Gas UK Chief Executive Deirdre Michie said:

“This is a very significant deal and signals a strong vote of confidence in the future of the UK Continental Shelf and the focus on maximising economic recovery.

“With these acquisitions, Chrysaor becomes a leading independent oil and gas company in the UK and one of its largest producers on an equity basis. Maintaining a diversity of operators in the region is crucial and we welcome Shell’s continued significant presence here as well as the arrival of new companies like Chrysaor.

“We also welcome Chrysaor’s intent to explore and invest in its new portfolio; this sends positive signals about the opportunities the UK’s offshore oil and gas basin has to offer.

“This region still has the potential to yield many more millions of barrels of hydrocarbons, helping to meet the country’s primary energy needs, secure jobs and generate wealth for the economy.

“Following on from similar deals in recent months, the new activity that this transaction could generate will be good news for the sector’s supply chain across the UK, which has been severely impacted by the downturn.”

 

 

Commenting on the publication of the Scottish Government’s consultation on its Energy Strategy, Oil & Gas UK’s CEO Deirdre Michie said:

“I welcome the Scottish Government’s recognition that oil and gas has an important part to play in Scotland’s energy mix going forward and that it is committed to supporting the policy of maximising economic recovery of the remaining hydrocarbons on the UK continental shelf.

“As we decarbonise towards 2050 and beyond, this sector can continue to make a significant contribution to Scotland’s economy.

“We support 330,000 jobs in the UK, 45 percent of which are in Scotland and many of which are highly skilled.

“The North East is a centre of excellence in areas such as subsea engineering, with potential to substantially grow the exports of supply chain goods and services, which in 2014 generated revenues of £16 billion for the UK economy.”

Oil & Gas UK in consultation with its members will respond in due course to today’s Energy Strategy and the recently published Climate Change Draft Plan.

In welcoming the publication of the UK Government’s green paper “Building our Industrial Strategy”, Oil & Gas UK’s CEO Deirdre Michie said:

“We look forward to contributing to the consultation on the Industrial Strategy to ensure that Government policy recognises and supports the importance of the vital upstream sector to the UK.  We are developers of cutting edge technology, providing highly skilled jobs, helping to power the nation and exporting to the world.  Furthermore, with up to an estimated 20 billion barrels of oil and gas to recover, the UK offshore oil and gas industry still has enormous potential to drive this country’s growth.

“The sector has contributed over £330 billion in corporate taxes since production began and currently still supports around 330,000 jobs across the UK.  Our supply chain is worth almost £30 billion and around 40 per cent of this is made up from exports.

“We welcome the focus on growing productivity, innovation and research and on managing the skills challenge.  As a UK wide industry, with hubs from Shetland to Southampton, we also welcome the focus on regionalisation.

“We firmly believe that the UK needs a strong and vital indigenous oil and gas industry underpinning the UK’s economic prosperity.

“The current industry downturn is extremely challenging for many of our members and we believe the industrial strategy can be a lever to ensure that this economic success story survives and continues to underpin the UK’s economic prosperity.

“Oil & Gas UK will coordinate industry and stakeholders in building a case for a sector deal that help towards that aim, deepening and developing centres of excellence from technology and decommissioning to subsea.”

 

The Offshore Helicopter Safety Leadership Group (OHSLG) is a tripartite group established through the amalgamation of the CAA’s Offshore Helicopter Safety Action Group (OHSAG) and Step Change in Safety’s Helicopter Safety Steering Group (HSSG).  It is jointly chaired by John McColl (CAA) and Mark Abbey (CHC).  Step Change in Safety act as the secretariat for the group and Oil & Gas UK is among the members.

Offshore Helicopter Safety Leadership Group, said: “This morning Sikorsky released an Alert Service Bulletin (ASB) for the S-92 requiring a onetime visual inspection of the Tail Rotor Pitch Change Shaft and Bearing assembly on the world wide S92 fleet prior to the next flight.

“This precautionary inspection is not a grounding, and will allow helicopter operators to carry out the request, which is additional to current routine inspections.  The Sikorsky ASB is mandatory and so will be complied with by helicopter operators worldwide, and requires operators to undertake:

 

  • One-off inspections of the tail rotor and bearing assemblies before the next flight.
  • A specific check of Health and Usage Monitoring System (HUMS) data for each aircraft HUMS will detect early indications of any sign of failure. The operators will have completed the checks on all the aircraft by midday tomorrow (Wednesday 11th January, 2017). It is expected that during the next 24 hours there will be a phased return of aircraft following full return to service testing.

“Clearly the priority is to ensure that both passengers and crew are safe and it is important to maintain a precautionary stance in what is an ongoing investigation. As we receive information we will deliver it to our members, clients and the workforce.”

 

Mick Borwell, Health, Safety and Environment Policy Director, Oil & Gas UK

 

Mick Borwell, Health, Safety and Environment Director with Oil & Gas UK, said:

“This is the expected response from a helicopter manufacturer when a potential problem has been identified. It is a precautionary measure to ensure the continued safe transportation of the workforce.  There will be some short term disruption to operations while these checks are carried out but every possible step will be taken to minimise that. We will continue to monitor events. We support any steps being taken to further ensure the safe travel of the UK offshore workforce.”

 

A new publication to help guide the growing use offshore of unmanned aerial systems (UAS) – also known as drones – has been published by Oil & Gas UK.

The Unmanned Aircraft Systems (UAS) Operations Management Standards and Guidelines were developed by a work group set up by the trade body, involving industry and aviation safety experts, plus UAS operators.

Mick Borwell, health, safety and environment director with Oil & Gas UK, explained: “A small but increasing number of oil and gas operators are using UAS for inspections predominantly, but also for aerial photography, surveying and security.

“The technology is particularly attractive for its use in improving safety. For example, sending unmanned aircraft instead of people into confined spaces to conduct inspections reduces risk, and is also effective and efficient.  We expect their usage to grow.”

The new guidelines aim to achieve consistency with the high safety and operating standards already adopted on the UK Continental Shelf for offshore oil and gas production and helicopter flight operations.

“The intention is to encourage offshore operators planning on using this emerging technology to think about the whole operating and safety system offshore and not just the air vehicle,” said Mr Borwell.

“The guidelines have evolved from lessons learned in recent years and provide information about best practice, procedures and the certification needed to be compliant with UAS regulations. They are an important piece of work addressing the application of a new technology to the offshore environment which will help to ensure operations on the North Sea remain as safe as they can be.”

The Unmanned Aircraft Systems (UAS) Operations Management Standards and Guidelines can be downloaded from the Oil & Gas UK website  and are free to members and £60 to non-members.

Issued by the Communications Team, Oil & Gas UK. For more information contact Communications Adviser Jennifer Phillips on [email protected] or 01224 577279.

Responding to the Chancellor’s Autumn Statement today Deirdre Michie, Chief Executive said:
“We are pleased to hear the Chancellor re-commit to HM Treasury’s Driving Investment plan today. This sends a strong signal to investors that the government recognises that the UK oil and gas tax regime needs to be predictable and internationally competitive.

“Today’s Treasury forecasts show our industry will be contributing £10 billion more in production taxes over the next five years than was previously expected. While this can be attributed in part to changes in commodity prices and exchange rates it also reflects the significant work of industry to make our operations more efficient and to increase production.

“Our industry can make a vital contribution in delivering the Chancellor’s ambitions for the economy and the government’s industrial strategy. We are developers of cutting edge technology, providing highly skilled jobs, helping power to the nation and exporting to the world.

“We will continue to work with Treasury on the important issue of decommissioning tax relief, key to stimulating investment and activity for the supply chain which we hope to see resolved by the 2017 Budget.

“The sector is still in urgent need of fresh investment and we need government to keep working with us to ensure a competitive business environment.”

Business opportunities unveiled at key supply chain event

One of the newest contractors in the UK North Sea was among the companies that set out their stalls to potential suppliers at a major oil and gas industry event in Aberdeen yesterday (Wednesday, November 1).

WorleyParsons was one of 11 companies and organisations to present at Share Fair – an Oil & Gas UK event designed to shine a light on potential new business and diversification opportunities for the UK oil and gas supply chain.

Sponsored by Stork – a Fluor company, the Aberdeen Exhibition and Conference Centre event attracted around 500 delegates.

Just days after confirming it had completed its £228 million takeover of Amec Foster Wheeler’s North Sea assets, WorleyParsons revealed the range of business opportunities it has in the North Sea, and also where supply chain expertise developed here could be deployed in their projects around the world.

Creating greater value rather than focusing on lowest cost was a key theme from Bibby Offshore, which advised how supply chain companies should best engage in its tender processes to deliver services.

Total E&P UK’s presentation focused on three major activity areas:  the Central Graben Area, Northern North Sea and West of Shetland.

As part of its forward plans pitch, Apache set out the expertise and technologies it needs is seeking to mitigate the challenges around heavy oil.

Repsol Sinopec highlighted its need for innovative technology and services to maximise returns on its operations and for decommissioning.

Also presenting were the Oil & Gas Technology Centre and representatives from the nuclear, offshore renewables and railways sectors.

Ken Cruickshank, Supply Chain Manager of Oil & Gas UK, said: “It’s been another successful Share Fair bringing suppliers and major purchasing companies together in one place to discuss how they can collaborate on future projects.  Many potential new business opportunities for the supply chain were highlighted, including £48 billion that is expected to be invested in the railways over the coming years and 18 new offshore wind projects in the pipeline.  Our supply chain has developed world class expertise in oil and gas – there is significant opportunity to capitalise on that and diversify into new sectors.”

ENDS

 

Notes to Editors:

 

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

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

Clean Growth Strategy – Oil & Gas UK response

Commenting on the UK Government’s Clean Growth Strategy, Mike Tholen, Upstream Policy Director with Oil & Gas UK, said:

“Oil & Gas UK welcomes the Government’s publication of the Clean Growth Strategy. The UK offshore oil and gas industry strives to reduce its emissions and CO2 emissions from production have fallen by 30% since 2000 – now accounting for just 3% of total domestic CO2 emissions. This downward trend is expected to continue.

“Oil and gas play a vital role in the UK’s energy mix with our own domestic resources meeting over half of our demand in 2016. Their importance in the UK’s energy mix will continue for decades to come with the Department for Business, Energy and Industrial Strategy indicating they will continue to meet approximately two thirds demand by 2035.

“With up to 20 billion barrels of oil and gas still to recover from the UK Continental Shelf, industry is well placed to provide an indigenous resource to help meet this energy need, whilst supporting hundreds of thousands of jobs across the UK.

“Additionally, meeting demand with domestic hydrocarbons eases our reliance on international resources, ensures we protect security of energy supply and mitigates against carbon leakage.

“Gas has transformed the UK’s power sector in recent years, with a significant coal-to-gas switching in the power mix achieving cost-effective emissions reductions. This switching made a major contribution to an estimated 20% fall in UK power sector emissions in 2016, underlining the important role gas should continue to play as part of a cost-effective decarbonisation of the energy system.

“Oil & Gas UK welcomes the Government’s commitment to technology in the strategy, especially with regards to carbon abatement measures such as Carbon Capture, Usage and Storage. Oil & Gas UK looks forward to working with the Government to see how these technologies can further reduce emissions across the economy.”

ENDS

Notes to Editors:

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

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

 

Fresh insight into UK oil and gas jobs scene captured in new report

New data providing more insight into the employment picture of the UK offshore oil and gas industry is published today (7 October) by Oil & Gas UK – the sector’s trade body.

The people working on offshore installations are a key focus of the Workforce Report which reveals the areas they travel from across the UK to get to their jobs offshore and how many are based in different regions of the UK Continental Shelf.

The report also looks at total employment for the industry and shows the regions across the UK where jobs are based.  Also highlighted are the other diverse industries – including financial services, retail and construction – where jobs are supported by the UK oil and gas sector.

The report says:

  • Industry supports more than 302,000[1] jobs with almost 60% of those in England, 38% in Scotland and the remainder across Northern Ireland and Wales.
  • The latest employment estimate is 160,000 lower than the peak of more than 460,000 jobs in 2014 – but the pace of contraction has slowed.
  • More than 52,000 people travelled offshore in the UK in 2016.
  • Of those, almost 24,000 are the core offshore workforce – people who spend more than 100 days on installations on the UK Continental Shelf (UKCS).
  • The number of core workers – directly linked to industry activity levels and spend – has seen a reduction of around 5,300 (18%) since 2014, when capital investment was at its peak, before the downturn.
  • Activity growth west of Shetland has resulted in the region seeing the greatest rise in offshore employment – more than doubling since 2014 to 4,304 offshore workers last year.
  • There has been a 42% increase in production per core worker since 2014, driven by industry efficiency improvements as well as higher volumes produced from redeveloped fields and new start-ups.
  • As the offshore population contracts, the average age of offshore workers has increased slightly by two years over the last two years to 42.7 – but is still roughly in line with the UK average.
  • Around 15% of the offshore workforce are non-British citizens – about half of whom are from other EU countries.
  • Other sectors where jobs are supported by the UK oil and gas industry include manufacturing, construction, metal products, finance, retail, and civil engineering, highlighting the economic reach of this industry and its importance to the wider UK economy.

Report author Alix Thom, Workforce Engagement and Skills Manager with Oil & Gas UK, said: “Our report sheds more light on the employment of an industry that has seen a significant contraction because of the global downturn.

“While employment has fallen over the last two years, the rate of contraction appears to be slowing and we are seeing more positive signs, such as increased activity west of Shetland.

“With billions of barrels of oil and gas still to be recovered from the North Sea, we need more fresh investment into the basin to drive new activity and help safeguard the hundreds of thousands of UK wide jobs our sector continues to support.”

The report can be seen here.

ENDS

Notes to Editors:

The Workforce Report 2017 expands on the industry employment data published within Oil & Gas UK’s Economic Report 2017.

It provides more detail on the total employment supported across the whole upstream industry, both on and offshore, and draws on the Vantage Personnel on Board data to look exclusively at the breakdown of the offshore workforce.

Meanwhile, as part of its effort to attract more investment into the UK Continental Shelf and drive new activity and help safeguard jobs, Oil & Gas UK has submitted its asks of Treasury from the forthcoming Autumn Budget. The trade body is calling for:

  • Continued public commitment to the Driving Investment Plan – as this provides investors with the required fiscal predictability and confidence to invest in the UKCS.
  • Enabling Transferable Tax History – allowing a part of tax history to transfer from the seller to the buyer of North Sea oil and gas assets, which allows assets to move to those most suited to extend the productive life of the basin.
  • Support for the supply chain – by improving access to finance and recognition of competitiveness, attracting new investment.

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

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

[1] The number covers the full spectrum of employment – direct, indirect, and induced jobs.

  • Direct – those employed by companies extracting oil and gas.
  • Indirect – those who provide goods and services for an oil and gas company.
  • Induced – local economy jobs that benefit from the sector eg hospitality.

Statoil announcement welcomed by Oil & Gas UK

Responding to Statoil’s announcement that it has made an oil discovery in the Verbier prospect on the UK Continental Shelf, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“This is good news from Statoil and partners and we now really hope that the find proves to be commercially appealing and proceeds to development.

“It’s also another signal of confidence in the future of the UK Continental Shelf and the kind of development that should further persuade investors of the benefit of putting their money into this basin which still holds billions of barrels of oil and gas.”

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

 

 

UK oil and gas experience and expertise shared with Mexico

Mexico’s offshore oil and gas sector will gain insights from the UK Continental Shelf at a key event taking place today (3 October).

The British Chamber of Commerce in Mexico is hosting an Energy Day in the country – bringing together around 600 of Mexico’s leading energy professionals to discuss what’s next for the country’s sector.

Stephen Marcos Jones, Director of Business Excellence with Oil & Gas UK, is one of the key speakers at the event which comes at a defining period in the history of energy in Mexico, its connectivity to energy across North America and the ways that refined products are distributed and energy is traded.

“This is an excellent opportunity to hear more about what’s happening in Mexico following reform a few years ago which has enabled local and foreign private investment into the energy sector after decades of the industry being nationalised,” said Stephen Marcos Jones.

“I’ll be giving an overview of the UK Continental Shelf and covering issues such as the efficiency measures industry is taking to manage its way through the downturn, as well as the steps Government have taken to make the basin one of the most fiscally attractive regimes in the world,” added Mr Marcos Jones, who is also attending tomorrow’s ‘farm out’ of exploration and extraction licences.

“This is also another valuable opportunity to highlight the capabilities and expertise of our world-class supply chain which we are trying to help diversity into global markets.”

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

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

Oil & Gas UK welcomes Chancellor’s visit to Aberdeen

Commenting as the Chancellor of the Exchequer Philip Hammond visits Aberdeen, Oil & Gas UK Chief Executive Deirdre Michie said: “It’s good to see the Chancellor here in Aberdeen. His visit sends a strong message of support for industry and his funding announcement to help stimulate exploration – that has been particularly hard hit by the downturn – is a welcome boost.

“I look forward to meeting the Chancellor and will use this opportunity to update him on the progress industry has made in terms of improving costs and efficiency.

“The UK Government has already made some positive changes to our fiscal regime which have helped reposition the basin as globally competitive.

“Building on this, we need HM Treasury to maintain its commitment to the Driving Investment plan and also enable transferable tax history in the Autumn Budget, which we believe will further unlock the transfer market for late-life assets, encourage more investment, and delay decommissioning for as long as possible with the associated benefit to the Exchequer and the UK.

“We are also seeking a strong partnership with Government to support our world-class supply chain and help it capture a greater share of the export market.

“This is an industry that makes an extraordinary contribution to the UK economy helping meet our energy needs, making an estimated contribution of £17 billion to the UK’s balance of trade and supporting 300,000 jobs across the UK.  Our supply chain also exports almost £12 billion exports of goods and services around the globe.

“With the right support from Government, and a relentless focus on efficiency from industry, we can maximise our domestic resources, while anchoring our supply chain here in the UK for the long-term.”

Notes to Editors

Oil & Gas UK has submitted its asks of Treasury from the forthcoming Autumn Budget. The trade body is calling for:

  • Continued public commitment to the Driving Investment Plan – as this provides investors with the required fiscal predictability and confidence to invest in the UKCS.
  • Enabling Transferable Tax History – allowing a part of tax history to transfer from the seller to the buyer of North Sea oil and gas assets, which allows assets to move to those most suited to extend the productive life of the basin.
  • Support for the supply chain – by improving access to finance and recognition of competitiveness, attracting new investment.

 

Brexit cities report – Oil & Gas UK response

The trade body for the UK offshore oil and gas industry has given its response to the Brexit, trade and the economic impacts on UK Cities report from the Centre for Economic Performance and Centre for Cities at the London School of Economics.

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “We have yet to see details of this report but would welcome discussion with the authors. We commissioned our own study into the possible cost of trade, where our workforce comes from, and the potential impact and opportunities of Brexit. It found that the tariff and trade impact on oil and gas producers would likely be less severe than specific areas of the supply chain that trades goods such as chemicals and plastics internationally.

“We briefed Government on our findings and will continue to work with Government to further understand the potential impact on our sector.

“Industry has worked hard to boost productivity and reduce operating costs. While we are globally competitive, we are sensitive to extra burdens whether that be cost-related or restrictions on movement of personnel needed for critical operations. As such, Government should be aware of the tariff and non-tariff barriers which may be presented.”

 

Key report shows safety further improving in UK offshore oil and gas

The latest annual health and safety data published for the UK offshore oil and gas industry signals a continued trend of improving performance despite 2016 being a challenging year, says Oil & Gas UK.

The sector’s trade body today (July 27) publishes its Health & Safety Report 2017 – capturing the significant trends, issues and themes of the sector’s performance on the UK Continental Shelf during 2016.

Highlights of the report – which demonstrates that industry’s continued focus on safety is delivering –  include:

  • Dangerous occurrences – which have the potential to cause serious incidents and include oil and gas releases, dropped objects and fires and explosions – are the lowest on record
  • Six operators had no dangerous occurrences in 2016
  • Major and significant oil and gas releases are at an all-time low
  • There were 113 reportable injuries in over 50 million manhours worked offshore – the second lowest number of reportable injuries since the mid-1990s when the safety regulations came into force
    • the most common type of injury were strains and sprains
    • the three-year average non-fatal injury rate is less than half of construction and transport sectors
  • Nine operators had no reportable injuries in 2016
  • Safety critical maintenance backlog continues to reduce

Tragically, there was a fatality in 2016, which occurred during the unpacking of a container offshore, underlining how this major hazard industry can never let up on its drive to achieve the highest levels of safety performance.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “Our report reflects the continued industry-wide effort we make to maintain focus on the safety of our people and operations. That effort is paying back in the form of an improving overall performance.

“Nevertheless, 2016 was a year with fatalities in the UK and Norwegian sectors. The helicopter tragedy off Norway, which took the lives of 13 people, and a further non-fatal helicopter incident in the UK, has led to continued scrutiny of aviation safety. All such incidents are investigated and the findings shared across the sector.

“While these incidents cast a shadow over the year, it is important to recognise where progress has been made.

“Process safety incidents – which includes oil and gas releases, fires or explosions and dropped objects – are at the lowest on record. There has been a sustained overall downward trend in the total number of these hydrocarbon releases reported since a peak in 2004. Prevention of releases remains an absolute priority.

“We are also continuing to see reductions in the safety-critical maintenance backlog – an area industry has worked hard to address.

“The collaborative work across industry to improve safety performance is delivering. However, to drive further improvement, we must maintain our focus and collective determination and ensure that safety remains at the heart of all our operations.”

Oil & Gas UK’s Health & Safety Report 2017 , an infographic and a video of Health & Safety Manager Trish Sentence talking about the report can be downloaded here.

Kraken first oil welcomed by Oil & Gas UK

Oil & Gas UK has welcomed the announcement today (26 June) from EnQuest that first oil from the Kraken development has been delivered.

Deirdre Michie, Chief Executive, said: “This is very welcome news from EnQuest and further confirmation of the potential of the UK Continental Shelf. The pursuit of oil and gas is always challenging and EnQuest has taken a variety of innovative and efficient steps successfully to complete the large Kraken development project while keeping costs down. Effective partnership working with the supply chain has also played an important part. First oil from Kraken is good for EnQuest and good for our industry. It demonstrates once again what the North Sea can still deliver with the right approach and investment.”

Deadline extended for Offshore Safety Awards

There is still time to shine a spotlight on the people and companies doing their best for offshore health and safety after organisers extended the deadline for entries to this year’s Offshore Safety Awards.

The closing date for nominations to the event – organised by Oil & Gas UK and Step Change in Safety, with Maersk Oil as principal sponsor – has been extended to 12 noon on Friday 2 June.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said: “We had a really high calibre of entries to our awards when they were held, in their new format, for the first time last year. We’re seeing the same again this year and wish to ensure as many people as possible can submit their entries before judging gets underway in June.”

Les Linklater, Executive Director of Step Change in Safety, said: “The Offshore Safety Awards are all about sharing and learning from the success of others. This is something our industry is embracing and we are really trying to encourage as many people as possible to participate and nominate in this year’s awards. We know there are some amazing organisations and individuals out there who are hugely successful in the safety space and we want to hear from them, and celebrate their achievements.”

There are six categories in the Awards – open to all companies and organisations operating in or involved with UK offshore operations – and they are:

  • Sharing and Learning
  • Workforce Engagement
  • Innovation in Safety
  • Safety Representative of the Year
  • Safety Leadership
  • Operational Integrity

A panel of judges and those attending the awards will decide the winner of each category at the interactive event which takes place on Wednesday 23 August at the Aberdeen Exhibition and Conference Centre.

Trade body welcomes first oil from Montrose Area Redevelopment

Following the announcement by Repsol Sinopec Resources UK that first oil has begun to flow from the Shaw  field, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“This is a tremendous achievement by Repsol Sinopec Resources UK and their commitment to the North Sea is very welcome indeed.

“This is a major redevelopment in an area of the North Sea that has been producing for many years. It combines new and mature field activities that will extend the Montrose area’s productive life and demonstrates the potential that can still flow from the UK Continental Shelf with the right investment.

“At the project’s inception, HM Treasury worked closely with the industry to begin to make the tax regime more competitive. Since then, the tax regime for this basin has improved substantially and is now one of the most fiscally competitive in the world. We look forward to more investment of the kind announced today in order to unlock the billions of barrels of oil and gas that we believe this basin still holds.”

Brexit and the UK oil and gas industry

The trade body for the UK oil and gas industry has written to the Prime Minister highlighting research findings that assess the potential impact and opportunities of Brexit on the sector.

The study – commissioned by Oil & Gas UK – looked at the possible cost of trade for the sector and illustrates where the UK sector’s workforce comes from.

On trade costs, the data shows that:

  • Around £73 billion worth of oil and gas related trade (fuel and non-fuel) flows between the UK and the rest of world
  • Approximately £61 billion of this is related to traded goods, which may be subject to tariffs (services account for the remaining £12 billion)
  • Under the current ‘status-quo’ scenario with the UK as part of the EU, the total cost of this trade in goods is around £600 million per annum (less than 2% of the total value of trade subject to tariffs)
  • Under a worst-case scenario where the UK reverts to WTO rules with the EU and the rest of the world, the likely cost of trade will almost double to around £1.1 billion per annum; assuming trading behaviours remain unchanged
  • If the UK can negotiate minimal tariffs with the EU and improved tariffs with the rest of the world, the total cost of trade could fall by around £100 million per annum to £500 million

On labour movement, the data shows:

  • Of those directly employed by the oil and gas industry in the UK, 90% are UK national, 5% are EU workers from countries other than the UK and 5% are non-EU
  • Around 70% of the EU workers in the industry are skilled, with one in two holding managerial roles
  • Oil & Gas UK understands that these skilled roles filled by EU workers are often critical for projects and asks Government to consider these posts when developing domestic immigration policy.

To minimise any Brexit cost burden and to secure beneficial trading conditions, Oil & Gas UK recommends the UK Government prioritises the following during negotiations:

  • Frictionless access to markets and labour
  • Maintaining a strong voice in Europe
  • Protecting energy trading and the internal energy market

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “Oil & Gas UK is an apolitical organisation representing a large and diverse membership where there will be a variety of views.  While the trade body can’t take a position on Brexit, we commissioned the research because we need to understand the possible impact on our industry – and the possible opportunities – from exiting the EU.

“We also identified other EU policy issues as critical to the oil and gas industry and will require negotiation with European counterparts, as well as discussions at the domestic level between Government, regulators and industry during the Brexit process.

“During the global industry downturn, our industry has continued to focus on increasing its production efficiency, and on its unit operating costs which have improved by almost 50%.

“We are becoming a more globally competitive industry, but we continue to be very sensitive to any additional burdens either in relation to cost, or restrictions on the movement of key personnel required for critical operations.

“There are still up to 20 billion barrels of oil and gas to recover from the UKCS and, if properly supported, our already world-class supply chain could double its turnover by 2035.

“Oil & Gas UK would welcome discussions with Government officials to outline industry’s concerns and opportunities and help identify a path forward during Brexit negotiations.

“Our request of Government is that any change, whether domestic or European, is managed in a manner that minimises risk to the oil and gas industry and provides predictability and clarity wherever possible, through constructive dialogue and consultation.”

The letter was sent to the Prime Minister on Monday.

ENDS

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

Safety champions wanted for industry awards

The hunt begins again for the men, women and companies going the extra mile for safety in the UK oil and gas industry. 

Individuals and businesses from across the sector are being encouraged to enter this year’s Offshore Safety Awards taking place at the Aberdeen Exhibition and Conference Centre on August 23.

Jointly organised by Oil & Gas UK and Step Change in Safety with Maersk Oil as principal sponsor, the annual safety awards celebrate the people and companies striving to make the UK Continental Shelf as safe as possible.

Nominations for the six categories have opened with a new addition of the Operational Integrity Award –  which recognises a company’s understanding and effective application of risk management in delivering safe operations.

Mick Borwell, Health, Safety and Environment Policy Director with Oil & Gas UK, said:

Mick Borwell, Health, Safety and Environment Policy Director, Oil & Gas UK

“All the winners and finalists in 2016 were extremely worthy and demonstrated high standards and excellent work in promoting safety in their own workplace and across the industry. We look forward to seeing this year’s entries and hope to attract even more people and workplaces where their efforts are having a positive impact on the sector.”

The awards – hosted in a theatre-style ceremony – will see the audience participating in the judging. Finalists will film video selfies and explain on the day what they have been doing to contribute toward safety.

Les Linklater, Executive Director with Step Change in Safety, said: “The offshore and onshore workforce is key to the prevention of major accidents and we should celebrate their hard work and dedication to safety – that’s what is at the heart of Offshore Safety Awards.

“The ceremony also gives the industry an opportunity to share and learn from one another, while also honouring and recognising the important people who play their part in continually improving our safety performance.

“Last year’s award ceremony was well received and we look forward to hosting the next one in August.”

All entries must be submitted by 26 May with the finalists being announced at the end of June.  The categories in the Offshore Safety Awards are:

Mick Borwell with some of last year’s winners.

•        Safety Leadership – for an inspirational leader who motivates and engages their team to work safely.
•        Safety Representative of the Year – for an enthusiastic and committed safety rep that is driving the safety agenda at their worksite.
•        Innovation in Safety – for a company which has put in place a clever process or technique to improve safety either across an organisation or at an individual worksite.
•        Workforce Engagement – for an individual or team which has actively embraced engagement with its workers on safety matters, showing how a commitment to worker involvement in safety has contributed to an improvement in safety performance.
•        Operational Integrity –  for an individual or team which has delivered increased efficiency or understanding of risk by putting in place sensible and proportionate risk management solution(s).
•        Sharing and Learning – for an individual/team or company that can demonstrate a learning and sharing culture either within their organisation, or who has made a significant contribution to health and safety through active participation in, or engagement with Oil & Gas UK or Step Change in Safety.

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

Oil & Gas UK welcomes Shell’s multi-billion pound deal with Chrysaor

 

Welcoming today’s announcement (31 January) that Shell has agreed to sell a package of UK North Sea assets to Chrysaor in a multi-billion pound deal, Oil & Gas UK Chief Executive Deirdre Michie said:

“This is a very significant deal and signals a strong vote of confidence in the future of the UK Continental Shelf and the focus on maximising economic recovery.

“With these acquisitions, Chrysaor becomes a leading independent oil and gas company in the UK and one of its largest producers on an equity basis. Maintaining a diversity of operators in the region is crucial and we welcome Shell’s continued significant presence here as well as the arrival of new companies like Chrysaor.

“We also welcome Chrysaor’s intent to explore and invest in its new portfolio; this sends positive signals about the opportunities the UK’s offshore oil and gas basin has to offer.

“This region still has the potential to yield many more millions of barrels of hydrocarbons, helping to meet the country’s primary energy needs, secure jobs and generate wealth for the economy.

“Following on from similar deals in recent months, the new activity that this transaction could generate will be good news for the sector’s supply chain across the UK, which has been severely impacted by the downturn.”

 

 

Oil & Gas UK comments on the Scottish Government’s Energy Strategy

Commenting on the publication of the Scottish Government’s consultation on its Energy Strategy, Oil & Gas UK’s CEO Deirdre Michie said:

“I welcome the Scottish Government’s recognition that oil and gas has an important part to play in Scotland’s energy mix going forward and that it is committed to supporting the policy of maximising economic recovery of the remaining hydrocarbons on the UK continental shelf.

“As we decarbonise towards 2050 and beyond, this sector can continue to make a significant contribution to Scotland’s economy.

“We support 330,000 jobs in the UK, 45 percent of which are in Scotland and many of which are highly skilled.

“The North East is a centre of excellence in areas such as subsea engineering, with potential to substantially grow the exports of supply chain goods and services, which in 2014 generated revenues of £16 billion for the UK economy.”

Oil & Gas UK in consultation with its members will respond in due course to today’s Energy Strategy and the recently published Climate Change Draft Plan.

Oil & Gas UK response to the Industrial Strategy green paper

In welcoming the publication of the UK Government’s green paper “Building our Industrial Strategy”, Oil & Gas UK’s CEO Deirdre Michie said:

“We look forward to contributing to the consultation on the Industrial Strategy to ensure that Government policy recognises and supports the importance of the vital upstream sector to the UK.  We are developers of cutting edge technology, providing highly skilled jobs, helping to power the nation and exporting to the world.  Furthermore, with up to an estimated 20 billion barrels of oil and gas to recover, the UK offshore oil and gas industry still has enormous potential to drive this country’s growth.

“The sector has contributed over £330 billion in corporate taxes since production began and currently still supports around 330,000 jobs across the UK.  Our supply chain is worth almost £30 billion and around 40 per cent of this is made up from exports.

“We welcome the focus on growing productivity, innovation and research and on managing the skills challenge.  As a UK wide industry, with hubs from Shetland to Southampton, we also welcome the focus on regionalisation.

“We firmly believe that the UK needs a strong and vital indigenous oil and gas industry underpinning the UK’s economic prosperity.

“The current industry downturn is extremely challenging for many of our members and we believe the industrial strategy can be a lever to ensure that this economic success story survives and continues to underpin the UK’s economic prosperity.

“Oil & Gas UK will coordinate industry and stakeholders in building a case for a sector deal that help towards that aim, deepening and developing centres of excellence from technology and decommissioning to subsea.”

Offshore Helicopter Safety Leadership Group statement re S-92 helicopter alert service bulletin

 

The Offshore Helicopter Safety Leadership Group (OHSLG) is a tripartite group established through the amalgamation of the CAA’s Offshore Helicopter Safety Action Group (OHSAG) and Step Change in Safety’s Helicopter Safety Steering Group (HSSG).  It is jointly chaired by John McColl (CAA) and Mark Abbey (CHC).  Step Change in Safety act as the secretariat for the group and Oil & Gas UK is among the members.

Offshore Helicopter Safety Leadership Group, said: “This morning Sikorsky released an Alert Service Bulletin (ASB) for the S-92 requiring a onetime visual inspection of the Tail Rotor Pitch Change Shaft and Bearing assembly on the world wide S92 fleet prior to the next flight.

“This precautionary inspection is not a grounding, and will allow helicopter operators to carry out the request, which is additional to current routine inspections.  The Sikorsky ASB is mandatory and so will be complied with by helicopter operators worldwide, and requires operators to undertake:

 

  • One-off inspections of the tail rotor and bearing assemblies before the next flight.
  • A specific check of Health and Usage Monitoring System (HUMS) data for each aircraft HUMS will detect early indications of any sign of failure. The operators will have completed the checks on all the aircraft by midday tomorrow (Wednesday 11th January, 2017). It is expected that during the next 24 hours there will be a phased return of aircraft following full return to service testing.

“Clearly the priority is to ensure that both passengers and crew are safe and it is important to maintain a precautionary stance in what is an ongoing investigation. As we receive information we will deliver it to our members, clients and the workforce.”

 

S-92 Helicopter Alert Service Bulletin – Oil & Gas UK response

Mick Borwell, Health, Safety and Environment Policy Director, Oil & Gas UK

 

Mick Borwell, Health, Safety and Environment Director with Oil & Gas UK, said:

“This is the expected response from a helicopter manufacturer when a potential problem has been identified. It is a precautionary measure to ensure the continued safe transportation of the workforce.  There will be some short term disruption to operations while these checks are carried out but every possible step will be taken to minimise that. We will continue to monitor events. We support any steps being taken to further ensure the safe travel of the UK offshore workforce.”

 

New guidelines for the use of drones offshore

A new publication to help guide the growing use offshore of unmanned aerial systems (UAS) – also known as drones – has been published by Oil & Gas UK.

The Unmanned Aircraft Systems (UAS) Operations Management Standards and Guidelines were developed by a work group set up by the trade body, involving industry and aviation safety experts, plus UAS operators.

Mick Borwell, health, safety and environment director with Oil & Gas UK, explained: “A small but increasing number of oil and gas operators are using UAS for inspections predominantly, but also for aerial photography, surveying and security.

“The technology is particularly attractive for its use in improving safety. For example, sending unmanned aircraft instead of people into confined spaces to conduct inspections reduces risk, and is also effective and efficient.  We expect their usage to grow.”

The new guidelines aim to achieve consistency with the high safety and operating standards already adopted on the UK Continental Shelf for offshore oil and gas production and helicopter flight operations.

“The intention is to encourage offshore operators planning on using this emerging technology to think about the whole operating and safety system offshore and not just the air vehicle,” said Mr Borwell.

“The guidelines have evolved from lessons learned in recent years and provide information about best practice, procedures and the certification needed to be compliant with UAS regulations. They are an important piece of work addressing the application of a new technology to the offshore environment which will help to ensure operations on the North Sea remain as safe as they can be.”

The Unmanned Aircraft Systems (UAS) Operations Management Standards and Guidelines can be downloaded from the Oil & Gas UK website  and are free to members and £60 to non-members.

Issued by the Communications Team, Oil & Gas UK. For more information contact Communications Adviser Jennifer Phillips on [email protected] or 01224 577279.

Oil & Gas UK response to the Autumn Statement

Responding to the Chancellor’s Autumn Statement today Deirdre Michie, Chief Executive said:
“We are pleased to hear the Chancellor re-commit to HM Treasury’s Driving Investment plan today. This sends a strong signal to investors that the government recognises that the UK oil and gas tax regime needs to be predictable and internationally competitive.

“Today’s Treasury forecasts show our industry will be contributing £10 billion more in production taxes over the next five years than was previously expected. While this can be attributed in part to changes in commodity prices and exchange rates it also reflects the significant work of industry to make our operations more efficient and to increase production.

“Our industry can make a vital contribution in delivering the Chancellor’s ambitions for the economy and the government’s industrial strategy. We are developers of cutting edge technology, providing highly skilled jobs, helping power to the nation and exporting to the world.

“We will continue to work with Treasury on the important issue of decommissioning tax relief, key to stimulating investment and activity for the supply chain which we hope to see resolved by the 2017 Budget.

“The sector is still in urgent need of fresh investment and we need government to keep working with us to ensure a competitive business environment.”

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