Commenting today on the recommendations published in the Just Transition Commission’s final report which said the Scottish Government should create a “skills guarantee” to help workers make the leap from oil and gas to low-carbon sectors, OGUK’s workforce engagement and skills manager, Dr Alix Thom said:

“Oil and gas workers have a key role to play in an inclusive and sustainable transition to a low-carbon future and a cross-energy alliance of trade associations, skills bodies, governments and academia is already working to create an integrated all-energy career proposition for a net-zero industry in the UK. There is a high level of transferability of skills between oil and gas and other energy sectors as well as new sectors critical to decarbonisation such as CCUS and hydrogen, so any support to top up the skills required is welcome news for our industry’s workforce.”

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Following bp’s announcement today (March 18) that it proposes to develop the UK’s largest hydrogen project in Teesside, Mike Tholen, OGUK’s Sustainability Director commented:

“This is a brilliant example of how OGUK members such as bp are pioneering low-carbon energy innovations which will transform our economy and accelerate the UK’s drive to net zero.

“The North East of England has long been a major hub for the energy industry and has huge engineering capabilities with decades of UK offshore expertise which will help decarbonise one of the UK’s industrial heartlands. Expertise in developing cleaner energy systems in the UK will be in great demand as other countries around the world follow where we lead to address the challenge of climate change.”

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Commenting on the launch of the UK Government’s Industrial Decarbonisation Strategy announced today (17 March) OGUK’s Sustainability Director, Mike Tholen said:

“Many of our members are already active in decarbonisation projects and committed to bringing carbon capture and storage, hydrogen and offshore floating wind projects to life across the UK. This industrial decarbonisation strategy will help accelerate progress in net-zero incubator projects as well as enabling our world-class supply chain to develop new low carbon solutions.

“Around the UK, our members are involved in industrial clusters of low carbon projects including Net-Zero Teesside, Peterhead’s Acorn Carbon Capture and Storage, Offshore Wind on Dogger Bank and Hywind in the North Sea to help deliver the UK’s net zero ambitions. In the future, their essential expertise in developing cleaner energy systems will be in great demand as other countries around the world seek to address the challenge of climate change.”

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In response to a story published today in The Sunday Telegraph which suggests Ministers are considering declaring the beginning of the end for the North Sea oil industry with a ban on new exploration licences.

Commenting on the story, OGUK Sustainability Director Mike Tholen said:

“The UK’s offshore oil and gas industry recognises the urgent need for change and was one of the first sectors to commit to be a net-Zero industry by 2050, setting demanding interim targets to halve its own emissions by 2030.

“By working together, we can help deliver the energy transition, providing the oil and gas the UK will need for decades to come while cutting the impact on the environment.  Any curtailment of activity by licencing constraints risks impeding the UK’s ability to deliver a net-zero future, damaging our domestic supply chain and increasing energy imports whilst exporting the jobs and skills.

“Our industry is leading the way on green technologies including the switch to hydrogen and long-term storage of CO2. Achieving this through UK companies will require significant investment and we continue to work constructively with government to show this industry has the essential expertise and commitment to ensure delivery”.

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The UK’s offshore oil and gas industry has today welcomed the Chancellor’s announcement that Scottish businesses are set to receive a boost to their green energy transition and further investment to create local jobs in key sectors with a more than £57 million investment in tomorrow’s Budget (Wednesday 3 March).

The leading representative body for the sector, OGUK said its world-class supply chain has the expertise to deliver secure and affordable energy while driving low carbon solutions.

Deirdre Michie, OGUK’s chief executive, said:

“This is an exciting announcement by the Chancellor that will create jobs and help position the UK as a global hub of green energy.

“The UK’s world-leading supply chain is at the heart of this country’s ability to transition to a net zero economy, so the timely announcement of these new investments is welcome, recognising the positive role this sector has to play in our energy future.

Our workforce has the talent, expertise and skills to accelerate the delivery of the low carbon solutions of the future including CCUS, hydrogen and decarbonisation projects with huge potential for our expertise to be exported around the world.

“This funding will help create employment opportunities in new technologies, support the reduction of emissions from production and enable our industry to become part of a new low carbon energy community. Key to this will be the North Sea Transition Deal which we look forward to working closely and quickly with government to finalise.”

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Following the publication today (1 February) of Greenpeace’s Unearthed unit’s report looking into emissions from venting and flaring on the UKCS, OGUK’s emissions improvement manager, Louise O’Hara Murray said:

“We know that there is more work to be done and we’re already in action to ramp up our response as an industry. As one of the first industrial sectors to set out our roadmap to net zero, the UK’s offshore oil and gas industry has committed to clear sector-wide targets to halve all our emissions by the end of this decade before reaching net zero in 2050.

“We’re working with members on a specific action plan to tackle methane emissions which will drive action to reduce routine flaring and venting across the basin. We look forward to publishing this in spring this year as another important milestone for our changing sector.”

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Enhancing collaborative culture within the offshore oil and gas industry is not only key to maximising the potential of its existing world class supply chain but could also unlock future activity in the UK Continental Shelf (UKCS) and be key to delivering a successful Net-Zero future.

Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, according to the findings of the annual Deloitte and OGUK Collaboration Report, published today (January 28).

Deloitte and OGUK’s industry-wide Collaboration Index (CI), which measures the effectiveness of companies as partners in projects, is part of the annual UKCS upstream supply chain collaboration survey. The report showed a slight increase in the collaboration index to 7.1 in 2020 from 7.0 in 2019, highlighting the flexibility and support the supply chain showed during an exceptionally challenging year.

On top of this, collaboration success rates hit a record high in 2020 with more than 50 per cent of survey respondents saying over half of their efforts were successful. In what also marked a first in the survey’s six-year history, the overall proportion of ‘successful’ efforts was higher than ‘unsuccessful’ ones.

However, while COVID-19 saw many businesses work together to address the challenges, respondents said the pandemic and consequent economic downturn also led to disadvantageous commercial behaviours such as cancelled or modified contracts.

OGUK Supply chain and Operations Director, Katy Heidenreich, said: “OGUK has been encouraging industry to do business in a sustainable way to protect the supply chain. This includes finding innovative ways of working that deliver value for both sides, ensuring that industry has the skills and resources needed when activity rebounds, as well as using the Supply Chain Principles as a mechanism to improve behaviours.

“We redesigned the questions in our 2020 Collaboration survey to understand how well these Principles have been embraced since we launched them.

“Greater collaboration will be a key factor in unlocking future industry developments and to strengthening our basin, our versatility, and our resilience. The ability to work together well across companies, industry and the wider energy sector will be critical to delivering a successful energy transition which supports jobs and the communities we work in. Collaboration needs to be part of our DNA; while it is not a silver bullet, it is good for business.”

OGUK will issue a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.

Deloitte’s Office Senior Partner (Aberdeen), Graham Hollis, said: “In what is an extremely challenging environment, the industry must assess new opportunities and challenges as it addresses the year ahead. Organisations need to reimagine their businesses and models and focus on the right set of collaborative behaviours because as the report highlights, working closely with suppliers and customers to support one another will be vital.

“As part of this, Deloitte has produced a Framework for Action which details six building blocks that organisations should consider helping develop and continue building successful collaborative relationships – ones which deliver greater value for both operators and suppliers.”

Deloitte’s Framework for Action supports the OGUK Supply Chain Principles, and both will be key to stimulating collaborative behaviours. OGUK will also be issuing a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.

With the Supply Chain Principles, energy transition and internal collaboration being new themes explored in this year’s survey, almost two-thirds of operator respondents said they were making some progress to meet their energy transition objectives – in line with the OGUK’s Roadmap 2035: a blueprint for net zero – compared with 49 per cent of suppliers.

While some operators showed best practice in sharing the risks and rewards of working relationships appropriately, there are still opportunities to improve.

OGA’s Head of Supply, Bill Cattanach, said: “Successful project delivery is more predictable where there is a fair and equitable partnership between operator and supplier.

“There are encouraging signals, as shown in the report, that the industry is leaving old approaches behind and embracing the expertise which exists within the supply chain in a collaborative manner. However, there is still room for improvement, and collaboration should remain a key focus for industry going forward.”

The report can be viewed here .

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The leading representative body for the UK offshore oil and gas industry is appointing two directors to lead its newly created External Relations and Communications directorates aimed at supporting the current and evolving needs of OGUK’s members as the sector transitions towards a low carbon future.

Natalie Coupar takes up the role of Communications Director and Jenny Stanning will be OGUK’s External Relations Director, both with effect from 1 January 2021.

Natalie Coupar

Jenny Stanning

With extensive stakeholder and communications expertise, Natalie will lead the teams delivering the organisation’s media relations, editorial, design and digital strategy. Prior to her new role, Natalie was OGUK’s Communications Manager.

Before joining OGUK in 2017, Natalie developed broad and diverse communications experience in technology, the third sectors and politics.

As External Relations Director, Jenny will be responsible for leading OGUK’s external affairs, events and membership teams. In this new role her responsibilities include working with Governments, Parliaments, industry leaders, business and industry organisations and regulatory bodies to ensure that members’ interests are well represented.

Prior to joining OGUK, Jenny worked in politics and stakeholder management for 15 years including some time working in the Scottish Parliament.

In their new roles, Jenny and Natalie will build on the significant progress achieved by OGUK’s former Stakeholder and Communications Director Gareth Wynn, who leaves the representative body to take up a leadership role overseas, after three years as OGUK’s stakeholder and communications director.

OGUK Chief Executive Deirdre Michie commented:

“By any measure, this year has been incredibly challenging for all communities, yet the people in our industry have continued to demonstrate incredible resilience, applying their essential expertise to help support a fragile supply chain and its move towards a sustainable green recovery. Both Natalie and Jenny have great vision, commitment and drive and their experience will enable us to maintain this momentum, and help ensure we’re doing all we can to support our members.”

“I’m also grateful to Gareth for his invaluable contribution to OGUK and to the industry and wish him every success for the future.”

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OGUK has said a survey of oil and gas companies which finds about a fifth of firms are expecting more redundancies in 2021 is further confirmation of the stark conditions faced by many.

The leading representative body for the sector, which is due to publish its flagship Economic Report early next week, said it continues to champion a North Sea Transition Deal.

Commenting on the 32nd AGCC Oil and Gas Survey published today, OGUK Chief Executive Deirdre Michie said:

“The AGCC Oil and Gas Survey is further confirmation of the stark conditions faced by many companies in our industry, and we remain particularly concerned about the health of our world class supply chain. OGUK continues to work with industry to see what we can to together to safely increase activity and protect jobs while at the same time championing a North Sea Transition Deal with governments which could help realise the full potential of our changing sector, both now and in moves to a lower carbon future.”

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As the oil and gas sector continues to deal with the effects of COVID-19 and the collapse of commodity prices, OGUK’s 2020 Decommissioning Insight report reveals the decommissioning industry though resilient has not escaped the impact of such unprecedented conditions.

Given the major disruptions and challenges of 2020, OGUK conducted an additional interim survey of operators in June 2020 to provide deeper insight of the impact of COVID-19 on decommissioning activity. This showed that continuing market uncertainty has led to around £500 million of decommissioning expenditure previously scheduled for 2020-22 being deferred into the future.

OGUK’s supply chain and operations director, Katy Heidenreich said:

“All parts of the oil and gas business are experiencing reductions in cash flow and decommissioning is no different. We’ve seen a 30 per cent reduction in expenditure from £1.47 billion in early 2020, to around £1.08 billion but despite these pressures, the sector is in no rush to decommission.

While many projects have been able to continue, we are also expecting to see reduced activity across all areas of decommissioning over the next three years.

During 2020, our hard-pressed supply chain has demonstrated both resilience in delivering the roster of projects that have gone ahead this year, but also continual performance improvement in terms of cost and efficiency.

We remain focused on supporting our supply chain through, for example, ensuring visibility of work so that when conditions change, our industry remains competitive. The specialist skills now being developed will also help us make the most of the opportunities presented by the energy transition which include low emission decommissioning, supporting the circular economy, re-purposing facilities and contributing to CCS, hydrogen and offshore wind developments.”

The report can be found here and the  findings show:

  • Estimated total spend on decommissioning in 2020 is £1.1 bn still consistently around 10% of overall industry expenditure
  • Decommissioning of a record two northern North Sea platforms in one year
  • Forecast for 2020 shrank by 30% from £1.47 bn to £1.08 bn
  • 116 wells, 260km of pipelines and 15 topsides have been decommissioned in 2020
  • Well decommissioning activity at lowest level since 2016

OGUK’s annual Decommissioning Insight also provides an analysis for the wider North Sea market including Norway, the Netherlands and Denmark and the scope of this year’s report has broadened to reflect the industry’s efforts to accelerate the energy transition and embrace opportunities to support a low-carbon future.

 

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Commenting on the 10-point green industrial revolution announced by Prime Minister Boris Johnson, OGUK’s chief executive, Deirdre Michie said today:

“We are pleased to see the Government is committed to its ambitious plans for tackling emissions in spite of all the other challenges we face. Our industry is already in action, evolving and contributing. We were one of the first major sectors in the UK to embrace the Government’s target to achieve net zero emissions by 2050.

The good news for jobs and the economy is that with the right support, companies based here in the UK have the expertise to make us world leaders in tackling emissions, including through carbon capture and hydrogen production, both of which are key to the clean energy system of the future. Exciting new technologies and innovations need to sit alongside delivering real reductions in emissions and improved efficiency. Things that our industry and every one of us can be getting on with right now.”

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The contribution decommissioning can make to the low carbon future is a key theme at OGUK’s first ever virtual conference on November 24-25 when Professor Paul de Leeuw director of the RGU Energy Transition Institute chairs a session exploring the skills and job opportunities this shift in focus presents.

Joe Leask, OGUK’s decommissioning manager, said:

“Tackling climate change is a global priority and our industry has the essential expertise to help make a difference. This session will examine the rapidly changing energy landscape and how we can meet our decommissioning obligations in an even more sustainable way. We know our skills and supply chain will play a big role in developing the low carbon solutions we need to meet climate change targets.”

The free, interactive event is open to all, with organisers hoping it will harness the power of different perspectives, challenge established norms and drive new conversations about decommissioning in the broader energy world.

Professor Paul de Leeuw commented: Decommissioning better and greener will have a key role to play in the transition to a lower carbon future. To do this effectively, we will need sector leading skills, capabilities and technologies. Combined with future decommissioning requirements in the renewables, hydrogen and CCUS sectors, the industry has a unique opportunity to create a new, world class energy decommissioning workforce. This session will be a great opportunity to bring together industry leaders, experts and decommissioning professionals to discuss these challenges and to provide new, stimulating insights on how we can collectively set this up for success.”

Decommissioning in a low carbon future also features in a session chaired by Louise O’Hara Murray OGUK’s Emissions Improvement manager. This will share learnings across the oil and gas and renewables sector, and the opportunities posed by energy integration, carbon capture and storage and innovation in low emissions decommissioning.

Throughout the two-day event, which has already attracted more than 550 registrations, participants can access a fully immersive experience enabling them to interact with industry experts, visit virtual exhibition stands and engage in online networking. With sponsorship from Repsol Sinopec Resource UK and IOGP, the conference covers an extensive range of topics including the UK’s ambition to become a Global Hub of Excellence, evolving developments in regulation and initiatives aimed at delivering added value across the decommissioning process.

More information is available on the Offshore Decommissioning Conference website at

https://offshoredecommissioningconference.co.uk/

 

ENDS

Commenting today on the speech to oil and gas workers by Scottish Conservative leader Douglas Ross, that protecting oil and gas jobs must be a priority and the North Sea sector can thrive alongside a growing renewables sector, OGUK’s chief executive, Deirdre Michie said:

“We welcome recognition of the vital role of the offshore oil and gas industry in our economy, which supports over 100,000 jobs in Scotland, provides the products and affordable energy we use in our everyday lives and has a world-leading supply chain of hundreds of businesses located across the country. It’s also key that these roles make a fundamental contribution to the transitioning energy economy in support of climate change targets.

“Through a North Sea Transition Deal we can help the huge parts of our economy which can’t use electricity to meet climate change targets, developing practical solutions including the development of hydrogen and carbon capture and storage at scale. At the same time, we remain laser-focussed on reducing our emissions.

“We look forward to conversations with all parties about the continued support needed for our sector in difficult times. In a stark economic climate for all, our changing industry has the essential expertise to provide affordable energy to millions of households and families, support jobs in energy communities across the country and create exciting new jobs of the future.”

The speech by Douglas Ross MP is available here

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Commenting on the Chancellor’s announcement today that the furlough scheme will be extended until the end of March 2021, OGUK’s workforce engagement and skills manager, Dr Alix Thom said:

 

“We welcome the support the Chancellor is providing today as it may provide a vital lifeline to many of our members enabling them to retain hundreds of workers in our industry whose skills and capabilities we will need to deliver deferred work, enable recovery and support our efforts in the transition to a low carbon future. Along with so many people facing continuing uncertainty due to Covid-19, our sector faces extra pressures generated by volatile oil and gas prices.

 

“These challenges inevitably mean recovery will take longer but we are doing all we can to support our supply chain and mitigate against further job losses. Through playing our part in delivery a green recovery, realising the full potential of the government’s  North Sea Transition Deal and continued support for our industry, we can help keep energy costs low for households and families, retain jobs and create new roles for the future.”

 

Ends

Commenting on the publication of the Oil and Gas Authority’s ‘Thematic Review into Industry Compliance with Regulatory Obligations’, which stresses the key role of licence management in maximising economic recovery,

OGUK Operations Director Katy Heidenreich said:

“Thematic reviews are an established method of performance improvement which has been used across a number of sectors and we welcome this constructive reflection from the OGA today.

“It not only highlights areas where the UK offshore oil and gas industry and the regulator can make improvements, but also where the sector can build upon good practise. While the report looks at compliance in 2018, it is encouraging to see the OGA recognise the steps taken by industry since then that point to improvement in performance.

“However, there is always more that can be done and the recommendations provide practical and considered suggestions for both industry and the OGA to continue to improve and we look forward to building on this constructive approach.”

The OGA’s report can be found at https://www.ogauthority.co.uk/news-publications/news/2020/the-oga-stresses-key-role-of-licence-management-in-maximising-economic-recovery/

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Decommissioning takes on a new global dimension as OGUK launches its first ever virtual conference to provide delegates with a dynamic, international and interactive online experience.

Taking place from November 24-25, the event goes beyond the confines of traditional conferences to provide a digital platform with potentially global reach enabling participants to drive new conversations about decommissioning in the broader energy world in a time of unprecedented change.

Throughout the two-day event, delegates gain access to a fully immersive experience enabling them to interact with industry experts, visit virtual exhibition stands and engage in online networking. Topics on the agenda include the UK’s ambition to become a Global Hub of Excellence, evolving developments in regulation and a focus on developing the skills needed to support future decommissioning needs.

Commenting, OGUK’s decommissioning manager Joe Leask said:

“Reliable and definitive information is invaluable in uncertain times. OGUK’s Offshore Decommissioning conference will draw on the expertise of leading figures in decommissioning from around the world, providing delegates with the latest insight on the pressures, challenges and opportunities on the horizon.

“Whatever the limitations imposed by Covid-19, this event is an ideal opportunity to engage with delegates and take stock of where the sector is, and where it fits into the global low carbon context.”

The diverse and topical programme will be supported by session champions that include experts from the Oil  and Gas Authority (OGA) and its Decommissioning Task Force; the International Association of Oil and Gas Producers (IOGP); the Oil and Gas Technology Centre (OGTC); Decom North Sea; Robert Gordon University, the Aberdeen section of the Society of Petroleum Engineers (SPE) and OGUK.

Representatives from the Health and Safety Executive (HSE), Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) and the OGA will be presenting at the event and delegates will also have the opportunity to use a multitude of online resources including videos, tools and presentations while contributing to live discussions via the chat channel.

More information is available at the Offshore Decommissioning Conference website and to register click here  

Ends

OGUK’s commitment to ensuring the recovery of the UK’s hard-pressed oil and gas supply chain continues with a webinar aimed at providing small to medium enterprises (SMEs) with top tips for successful tendering.

Taking place online on Wednesday 30 September, the free event aims to help SMEs wishing to improve how they bid to supply goods or services to a potential buyer and learn from experts in the field.

Emily Taylor, OGUK’s continuous improvement manager, said:

“Feedback from participants in our latest SME forum revealed there’s a strong demand for expert advice on tendering and what companies can do to continuously improve their business.

“While SMEs are a vital sector of our world-class supply chain and the lifeblood of innovation and opportunity, many are in a fragile position and our aim is give them a deeper insight of what customers look for from a potential supplier during the tendering process.

“Experts speaking at the webinar include representatives from the operator, SME, legal and commercial communities who will each outline what good practice looks like from their individual perspectives.”

Industry experts speaking at the event which starts at 9.30 am – 11.00 am include:

Catriona Stevenson, Chair of the OGUK SME Forum and Business Manager, Ecosse IP Ltd

Anne Farr, Managing Director, Rothera Group Ltd

Steve Mitchellhill, Contract specialist, Mitchelhill Consulting

Edward Hughes, Head of Contracts & Procurement, INEOS

Chris West, Chief Operating Officer, Optimus

Following the webinar which is open to both OGUK members and non-members, online delegates will have the opportunity to participate in a panel session and learn about how they can make the best of the opportunities ahead. Registration is at https://attendee.gotowebinar.com/register/1282319039831698959

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Commenting on the OGA’s announcement of the award offers in the 32nd Licensing Round

Katy Heidenreich, OGUK’s supply chain and operations director said:

“At a time when companies face huge pressures it is encouraging that our basin continues to demonstrate its attractiveness to a wide range of companies. This is a crucial element in unlocking the new investment that will help continue to meet UK energy needs and sustain jobs across our sector.
As a net importer of oil and gas it is critical that the UK continues to explore for and develop new resources in terms of energy security. Achieving this means we can continue to anchor our world-class expertise in the UK as our sector positions itself to play a key role in the transition to a lower carbon future as outlined in industry’s Roadmap 2035.”

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Findings from the first survey of digitalisation in the oil and gas industry reveal there’s a strong appetite to ensure technology is matured to improve the sector’s connectivity, efficiency and sustainability but highlight the need to promote collaborative working if these transformational changes are to become a reality.

With support from Deloitte, the UKCS Data and Digital Maturity Survey was launched in June 2020 by OGUK, the leading representative body for the UK offshore oil and gas industry, in partnership with the Technology Leadership Board (TLB), the Oil and Gas Technology Centre (OGTC), and Opportunity North East (ONE) to assess the maturity of digitalisation across the sector.

Compiled with input from a cross section of more than 70 organisations and almost 40 individuals, full details of the report will be shared at a free webinar chaired by Dr Dan Brown, Executive Director of OGUK subsidiary Common Data Access (CDA) together with CDA Delivery Manager Sakthi Norton on 1 September. Key speakers at the event will include:
• Mikki Corcoran, Co-Chair TLB
• Alex Macdonald, Digital Transformation Project Manager, OGTC
• Jared Owen, Director of Digital and Entrepreneurship, Opportunity North East (ONE)

Following the presentations, John Seabourn, Chief Digital Officer, OGA and Guri Neote Director of Deloitte Consulting’s Digital Capital Projects team will join the speakers in an interactive panel session.

Deirdre Michie, OBE OGUK Chief Executive, said:
“This timely report provides industry with an invaluable baseline for developing the strategies we need to realise the huge potential for digitalisation, enabling our industry to become more connected, efficient and sustainable in the process. Digitalisation is as much about culture as technology and the report highlights the importance of businesses working together to share ideas, challenge themselves and combine expertise to deliver the transformational change we need to spur our sector’s recovery and support an accelerated transition to net zero.”

Sir Ian Wood, KT GBE, Chair ONE, said,
“The report provides critical insight at a time when businesses of all sizes are having to adapt to major market and customer changes. While the industry is strong in the technical aspects of digital, it lacks the innovation mindset and culture to be decisive in digital transformation in relation to its peers. It is encouraging to see a strong desire for collaboration but it’s still not strong enough and we need to pick up the pace in this area if we are to fast-track progress. It’s imperative that we use the findings to collectively tailor action and catalyse a more digitally focused industry.”

Colette Cohen OBE, CEO of the Oil & Gas Technology Centre said:
“Digitalisation provides opportunities for increased efficiency, reduced carbon footprint and improved safety, which are crucial in the transition to a net zero future. This report shows that industry collaboration is the enabler, with the true potential of data being unlocked through a shared approach to industry challenges.”

Mikki Corcoran, Co-Chair TLB, Schlumberger, said
“Genuine digital transformation is fundamental to remaining a strategic energy supplier to the U.K. in a net zero world. Today we have the technology we need; leadership and vision are required to make this a reality on the UKCS.”

Graham Hollis, Office Senior Partner for Deloitte in Aberdeen added: “This report provides timely insight into the topics that matter most to businesses of all sizes operating across the UK’s oil and gas sector. It is promising to see the progress industry has made to date in its digital journey, however it is clear there remains many challenges that need to be overcome for industry to truly maximise the opportunity provided by digitalisation.”

The detailed survey report and summary slides can be found at the OGUK website

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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 recovery.

 

As UK Managing Director of gas-focused exploration and production company, Neptune Energy, Alexandra Thomas represents one of the leading independents investing in the UK North Sea. With international expertise in exploration and development, Alexandra brings 18 years’ oil and gas experience to OGUK’s board. She started her career on assignments with Shell and Equinor later working in senior leadership roles in the UK, Netherlands, Norway and Ghana, where she was Tullow Oil’s Head of Exploration, Development and Commercial before joining Neptune in 2020. An ardent promoter of diversity and inclusion in the workplace, Alexandra champions for women in engineering and technical roles and mentors a number of men and women in their career development.

 

 

 

 

BP’s Senior Vice President for the North Sea Emeka Emembolu has significant knowowledge of the company having joined the business in 1998. Since starting his career as a production engineer on bp’s ETAP development in the central North Sea, Emeka has worked in diverse technical and leadership roles in regions across the globe including the UK, Angola, Algeria, Egypt, Alaska and latterly Texas where he was Vice President, Reservoir Development for the Gulf of Mexico & Canada. Emeka is passionate about promoting STEM subjects and highlighting the potential for technology to deliver solutions to industry’s challenges.

 

 

 

 

 

As Regional Director for CHC Helicopter’s European, Middle East and African business, Mark Abbey has a wealth of aerospace and aviation experience built up over 35 years in the industry. Mark’s career has encompassed senior management positions in Europe, the USA, India and China. Earlier in his career, Mark spent 16 years at BAE Systems in an executive role managing their aircraft systems and operational facilities for assets including the Hawk Jet Trainer.

 

 

 

Deirdre Michie, OGUK’s chief executive, commented:

“The diverse experience and knowledge that Emeka, Mark and Alexandra bring to the OGUK Board will be a great asset as our industry tackles 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.

“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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Just Transition Commission Report welcome news for workforce says OGUK

Commenting today on the recommendations published in the Just Transition Commission’s final report which said the Scottish Government should create a “skills guarantee” to help workers make the leap from oil and gas to low-carbon sectors, OGUK’s workforce engagement and skills manager, Dr Alix Thom said:

“Oil and gas workers have a key role to play in an inclusive and sustainable transition to a low-carbon future and a cross-energy alliance of trade associations, skills bodies, governments and academia is already working to create an integrated all-energy career proposition for a net-zero industry in the UK. There is a high level of transferability of skills between oil and gas and other energy sectors as well as new sectors critical to decarbonisation such as CCUS and hydrogen, so any support to top up the skills required is welcome news for our industry’s workforce.”

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bp’s hydrogen project a great example of low-carbon energy innovation says OGUK

Following bp’s announcement today (March 18) that it proposes to develop the UK’s largest hydrogen project in Teesside, Mike Tholen, OGUK’s Sustainability Director commented:

“This is a brilliant example of how OGUK members such as bp are pioneering low-carbon energy innovations which will transform our economy and accelerate the UK’s drive to net zero.

“The North East of England has long been a major hub for the energy industry and has huge engineering capabilities with decades of UK offshore expertise which will help decarbonise one of the UK’s industrial heartlands. Expertise in developing cleaner energy systems in the UK will be in great demand as other countries around the world follow where we lead to address the challenge of climate change.”

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Government’s Industrial Decarbonisation Blueprint a key opportunity for UK supply chain says OGUK

Commenting on the launch of the UK Government’s Industrial Decarbonisation Strategy announced today (17 March) OGUK’s Sustainability Director, Mike Tholen said:

“Many of our members are already active in decarbonisation projects and committed to bringing carbon capture and storage, hydrogen and offshore floating wind projects to life across the UK. This industrial decarbonisation strategy will help accelerate progress in net-zero incubator projects as well as enabling our world-class supply chain to develop new low carbon solutions.

“Around the UK, our members are involved in industrial clusters of low carbon projects including Net-Zero Teesside, Peterhead’s Acorn Carbon Capture and Storage, Offshore Wind on Dogger Bank and Hywind in the North Sea to help deliver the UK’s net zero ambitions. In the future, their essential expertise in developing cleaner energy systems will be in great demand as other countries around the world seek to address the challenge of climate change.”

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OGUK comment in response to possible ban on new exploration licences

In response to a story published today in The Sunday Telegraph which suggests Ministers are considering declaring the beginning of the end for the North Sea oil industry with a ban on new exploration licences.

Commenting on the story, OGUK Sustainability Director Mike Tholen said:

“The UK’s offshore oil and gas industry recognises the urgent need for change and was one of the first sectors to commit to be a net-Zero industry by 2050, setting demanding interim targets to halve its own emissions by 2030.

“By working together, we can help deliver the energy transition, providing the oil and gas the UK will need for decades to come while cutting the impact on the environment.  Any curtailment of activity by licencing constraints risks impeding the UK’s ability to deliver a net-zero future, damaging our domestic supply chain and increasing energy imports whilst exporting the jobs and skills.

“Our industry is leading the way on green technologies including the switch to hydrogen and long-term storage of CO2. Achieving this through UK companies will require significant investment and we continue to work constructively with government to show this industry has the essential expertise and commitment to ensure delivery”.

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Oil and gas industry welcomes job creation and recognition of its positive role in net zero economy

 

The UK’s offshore oil and gas industry has today welcomed the Chancellor’s announcement that Scottish businesses are set to receive a boost to their green energy transition and further investment to create local jobs in key sectors with a more than £57 million investment in tomorrow’s Budget (Wednesday 3 March).

The leading representative body for the sector, OGUK said its world-class supply chain has the expertise to deliver secure and affordable energy while driving low carbon solutions.

Deirdre Michie, OGUK’s chief executive, said:

“This is an exciting announcement by the Chancellor that will create jobs and help position the UK as a global hub of green energy.

“The UK’s world-leading supply chain is at the heart of this country’s ability to transition to a net zero economy, so the timely announcement of these new investments is welcome, recognising the positive role this sector has to play in our energy future.

Our workforce has the talent, expertise and skills to accelerate the delivery of the low carbon solutions of the future including CCUS, hydrogen and decarbonisation projects with huge potential for our expertise to be exported around the world.

“This funding will help create employment opportunities in new technologies, support the reduction of emissions from production and enable our industry to become part of a new low carbon energy community. Key to this will be the North Sea Transition Deal which we look forward to working closely and quickly with government to finalise.”

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OGUK responds to Greenpeace Unearthed report on emissions from flaring and venting

Following the publication today (1 February) of Greenpeace’s Unearthed unit’s report looking into emissions from venting and flaring on the UKCS, OGUK’s emissions improvement manager, Louise O’Hara Murray said:

“We know that there is more work to be done and we’re already in action to ramp up our response as an industry. As one of the first industrial sectors to set out our roadmap to net zero, the UK’s offshore oil and gas industry has committed to clear sector-wide targets to halve all our emissions by the end of this decade before reaching net zero in 2050.

“We’re working with members on a specific action plan to tackle methane emissions which will drive action to reduce routine flaring and venting across the basin. We look forward to publishing this in spring this year as another important milestone for our changing sector.”

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Oil & gas industry needs to ‘reimagine’ its business and models to maximise energy transition opportunities

Enhancing collaborative culture within the offshore oil and gas industry is not only key to maximising the potential of its existing world class supply chain but could also unlock future activity in the UK Continental Shelf (UKCS) and be key to delivering a successful Net-Zero future.

Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, according to the findings of the annual Deloitte and OGUK Collaboration Report, published today (January 28).

Deloitte and OGUK’s industry-wide Collaboration Index (CI), which measures the effectiveness of companies as partners in projects, is part of the annual UKCS upstream supply chain collaboration survey. The report showed a slight increase in the collaboration index to 7.1 in 2020 from 7.0 in 2019, highlighting the flexibility and support the supply chain showed during an exceptionally challenging year.

On top of this, collaboration success rates hit a record high in 2020 with more than 50 per cent of survey respondents saying over half of their efforts were successful. In what also marked a first in the survey’s six-year history, the overall proportion of ‘successful’ efforts was higher than ‘unsuccessful’ ones.

However, while COVID-19 saw many businesses work together to address the challenges, respondents said the pandemic and consequent economic downturn also led to disadvantageous commercial behaviours such as cancelled or modified contracts.

OGUK Supply chain and Operations Director, Katy Heidenreich, said: “OGUK has been encouraging industry to do business in a sustainable way to protect the supply chain. This includes finding innovative ways of working that deliver value for both sides, ensuring that industry has the skills and resources needed when activity rebounds, as well as using the Supply Chain Principles as a mechanism to improve behaviours.

“We redesigned the questions in our 2020 Collaboration survey to understand how well these Principles have been embraced since we launched them.

“Greater collaboration will be a key factor in unlocking future industry developments and to strengthening our basin, our versatility, and our resilience. The ability to work together well across companies, industry and the wider energy sector will be critical to delivering a successful energy transition which supports jobs and the communities we work in. Collaboration needs to be part of our DNA; while it is not a silver bullet, it is good for business.”

OGUK will issue a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.

Deloitte’s Office Senior Partner (Aberdeen), Graham Hollis, said: “In what is an extremely challenging environment, the industry must assess new opportunities and challenges as it addresses the year ahead. Organisations need to reimagine their businesses and models and focus on the right set of collaborative behaviours because as the report highlights, working closely with suppliers and customers to support one another will be vital.

“As part of this, Deloitte has produced a Framework for Action which details six building blocks that organisations should consider helping develop and continue building successful collaborative relationships – ones which deliver greater value for both operators and suppliers.”

Deloitte’s Framework for Action supports the OGUK Supply Chain Principles, and both will be key to stimulating collaborative behaviours. OGUK will also be issuing a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.

With the Supply Chain Principles, energy transition and internal collaboration being new themes explored in this year’s survey, almost two-thirds of operator respondents said they were making some progress to meet their energy transition objectives – in line with the OGUK’s Roadmap 2035: a blueprint for net zero – compared with 49 per cent of suppliers.

While some operators showed best practice in sharing the risks and rewards of working relationships appropriately, there are still opportunities to improve.

OGA’s Head of Supply, Bill Cattanach, said: “Successful project delivery is more predictable where there is a fair and equitable partnership between operator and supplier.

“There are encouraging signals, as shown in the report, that the industry is leaving old approaches behind and embracing the expertise which exists within the supply chain in a collaborative manner. However, there is still room for improvement, and collaboration should remain a key focus for industry going forward.”

The report can be viewed here .

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OGUK appoints two directors to drive forward stakeholder and communications agenda

The leading representative body for the UK offshore oil and gas industry is appointing two directors to lead its newly created External Relations and Communications directorates aimed at supporting the current and evolving needs of OGUK’s members as the sector transitions towards a low carbon future.

Natalie Coupar takes up the role of Communications Director and Jenny Stanning will be OGUK’s External Relations Director, both with effect from 1 January 2021.

Natalie Coupar

Jenny Stanning

With extensive stakeholder and communications expertise, Natalie will lead the teams delivering the organisation’s media relations, editorial, design and digital strategy. Prior to her new role, Natalie was OGUK’s Communications Manager.

Before joining OGUK in 2017, Natalie developed broad and diverse communications experience in technology, the third sectors and politics.

As External Relations Director, Jenny will be responsible for leading OGUK’s external affairs, events and membership teams. In this new role her responsibilities include working with Governments, Parliaments, industry leaders, business and industry organisations and regulatory bodies to ensure that members’ interests are well represented.

Prior to joining OGUK, Jenny worked in politics and stakeholder management for 15 years including some time working in the Scottish Parliament.

In their new roles, Jenny and Natalie will build on the significant progress achieved by OGUK’s former Stakeholder and Communications Director Gareth Wynn, who leaves the representative body to take up a leadership role overseas, after three years as OGUK’s stakeholder and communications director.

OGUK Chief Executive Deirdre Michie commented:

“By any measure, this year has been incredibly challenging for all communities, yet the people in our industry have continued to demonstrate incredible resilience, applying their essential expertise to help support a fragile supply chain and its move towards a sustainable green recovery. Both Natalie and Jenny have great vision, commitment and drive and their experience will enable us to maintain this momentum, and help ensure we’re doing all we can to support our members.”

“I’m also grateful to Gareth for his invaluable contribution to OGUK and to the industry and wish him every success for the future.”

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Survey is further confirmation of stark conditions faced by industry

OGUK has said a survey of oil and gas companies which finds about a fifth of firms are expecting more redundancies in 2021 is further confirmation of the stark conditions faced by many.

The leading representative body for the sector, which is due to publish its flagship Economic Report early next week, said it continues to champion a North Sea Transition Deal.

Commenting on the 32nd AGCC Oil and Gas Survey published today, OGUK Chief Executive Deirdre Michie said:

“The AGCC Oil and Gas Survey is further confirmation of the stark conditions faced by many companies in our industry, and we remain particularly concerned about the health of our world class supply chain. OGUK continues to work with industry to see what we can to together to safely increase activity and protect jobs while at the same time championing a North Sea Transition Deal with governments which could help realise the full potential of our changing sector, both now and in moves to a lower carbon future.”

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Report confirms no rush to decommission as sector withstands disruptive year

 

As the oil and gas sector continues to deal with the effects of COVID-19 and the collapse of commodity prices, OGUK’s 2020 Decommissioning Insight report reveals the decommissioning industry though resilient has not escaped the impact of such unprecedented conditions.

Given the major disruptions and challenges of 2020, OGUK conducted an additional interim survey of operators in June 2020 to provide deeper insight of the impact of COVID-19 on decommissioning activity. This showed that continuing market uncertainty has led to around £500 million of decommissioning expenditure previously scheduled for 2020-22 being deferred into the future.

OGUK’s supply chain and operations director, Katy Heidenreich said:

“All parts of the oil and gas business are experiencing reductions in cash flow and decommissioning is no different. We’ve seen a 30 per cent reduction in expenditure from £1.47 billion in early 2020, to around £1.08 billion but despite these pressures, the sector is in no rush to decommission.

While many projects have been able to continue, we are also expecting to see reduced activity across all areas of decommissioning over the next three years.

During 2020, our hard-pressed supply chain has demonstrated both resilience in delivering the roster of projects that have gone ahead this year, but also continual performance improvement in terms of cost and efficiency.

We remain focused on supporting our supply chain through, for example, ensuring visibility of work so that when conditions change, our industry remains competitive. The specialist skills now being developed will also help us make the most of the opportunities presented by the energy transition which include low emission decommissioning, supporting the circular economy, re-purposing facilities and contributing to CCS, hydrogen and offshore wind developments.”

The report can be found here and the  findings show:

  • Estimated total spend on decommissioning in 2020 is £1.1 bn still consistently around 10% of overall industry expenditure
  • Decommissioning of a record two northern North Sea platforms in one year
  • Forecast for 2020 shrank by 30% from £1.47 bn to £1.08 bn
  • 116 wells, 260km of pipelines and 15 topsides have been decommissioned in 2020
  • Well decommissioning activity at lowest level since 2016

OGUK’s annual Decommissioning Insight also provides an analysis for the wider North Sea market including Norway, the Netherlands and Denmark and the scope of this year’s report has broadened to reflect the industry’s efforts to accelerate the energy transition and embrace opportunities to support a low-carbon future.

 

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OGUK response: Prime Minister’s 10-point plan for green industrial revolution

Commenting on the 10-point green industrial revolution announced by Prime Minister Boris Johnson, OGUK’s chief executive, Deirdre Michie said today:

“We are pleased to see the Government is committed to its ambitious plans for tackling emissions in spite of all the other challenges we face. Our industry is already in action, evolving and contributing. We were one of the first major sectors in the UK to embrace the Government’s target to achieve net zero emissions by 2050.

The good news for jobs and the economy is that with the right support, companies based here in the UK have the expertise to make us world leaders in tackling emissions, including through carbon capture and hydrogen production, both of which are key to the clean energy system of the future. Exciting new technologies and innovations need to sit alongside delivering real reductions in emissions and improved efficiency. Things that our industry and every one of us can be getting on with right now.”

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Conference explores decommissioning in a low carbon future

The contribution decommissioning can make to the low carbon future is a key theme at OGUK’s first ever virtual conference on November 24-25 when Professor Paul de Leeuw director of the RGU Energy Transition Institute chairs a session exploring the skills and job opportunities this shift in focus presents.

Joe Leask, OGUK’s decommissioning manager, said:

“Tackling climate change is a global priority and our industry has the essential expertise to help make a difference. This session will examine the rapidly changing energy landscape and how we can meet our decommissioning obligations in an even more sustainable way. We know our skills and supply chain will play a big role in developing the low carbon solutions we need to meet climate change targets.”

The free, interactive event is open to all, with organisers hoping it will harness the power of different perspectives, challenge established norms and drive new conversations about decommissioning in the broader energy world.

Professor Paul de Leeuw commented: Decommissioning better and greener will have a key role to play in the transition to a lower carbon future. To do this effectively, we will need sector leading skills, capabilities and technologies. Combined with future decommissioning requirements in the renewables, hydrogen and CCUS sectors, the industry has a unique opportunity to create a new, world class energy decommissioning workforce. This session will be a great opportunity to bring together industry leaders, experts and decommissioning professionals to discuss these challenges and to provide new, stimulating insights on how we can collectively set this up for success.”

Decommissioning in a low carbon future also features in a session chaired by Louise O’Hara Murray OGUK’s Emissions Improvement manager. This will share learnings across the oil and gas and renewables sector, and the opportunities posed by energy integration, carbon capture and storage and innovation in low emissions decommissioning.

Throughout the two-day event, which has already attracted more than 550 registrations, participants can access a fully immersive experience enabling them to interact with industry experts, visit virtual exhibition stands and engage in online networking. With sponsorship from Repsol Sinopec Resource UK and IOGP, the conference covers an extensive range of topics including the UK’s ambition to become a Global Hub of Excellence, evolving developments in regulation and initiatives aimed at delivering added value across the decommissioning process.

More information is available on the Offshore Decommissioning Conference website at

https://offshoredecommissioningconference.co.uk/

 

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OGUK response to Scottish Conservative leader’s speech to oil & gas workers

Commenting today on the speech to oil and gas workers by Scottish Conservative leader Douglas Ross, that protecting oil and gas jobs must be a priority and the North Sea sector can thrive alongside a growing renewables sector, OGUK’s chief executive, Deirdre Michie said:

“We welcome recognition of the vital role of the offshore oil and gas industry in our economy, which supports over 100,000 jobs in Scotland, provides the products and affordable energy we use in our everyday lives and has a world-leading supply chain of hundreds of businesses located across the country. It’s also key that these roles make a fundamental contribution to the transitioning energy economy in support of climate change targets.

“Through a North Sea Transition Deal we can help the huge parts of our economy which can’t use electricity to meet climate change targets, developing practical solutions including the development of hydrogen and carbon capture and storage at scale. At the same time, we remain laser-focussed on reducing our emissions.

“We look forward to conversations with all parties about the continued support needed for our sector in difficult times. In a stark economic climate for all, our changing industry has the essential expertise to provide affordable energy to millions of households and families, support jobs in energy communities across the country and create exciting new jobs of the future.”

The speech by Douglas Ross MP is available here

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OGUK responds to extension of furlough scheme

Commenting on the Chancellor’s announcement today that the furlough scheme will be extended until the end of March 2021, OGUK’s workforce engagement and skills manager, Dr Alix Thom said:

 

“We welcome the support the Chancellor is providing today as it may provide a vital lifeline to many of our members enabling them to retain hundreds of workers in our industry whose skills and capabilities we will need to deliver deferred work, enable recovery and support our efforts in the transition to a low carbon future. Along with so many people facing continuing uncertainty due to Covid-19, our sector faces extra pressures generated by volatile oil and gas prices.

 

“These challenges inevitably mean recovery will take longer but we are doing all we can to support our supply chain and mitigate against further job losses. Through playing our part in delivery a green recovery, realising the full potential of the government’s  North Sea Transition Deal and continued support for our industry, we can help keep energy costs low for households and families, retain jobs and create new roles for the future.”

 

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OGUK responds to the OGA’s Thematic review report

Commenting on the publication of the Oil and Gas Authority’s ‘Thematic Review into Industry Compliance with Regulatory Obligations’, which stresses the key role of licence management in maximising economic recovery,

OGUK Operations Director Katy Heidenreich said:

“Thematic reviews are an established method of performance improvement which has been used across a number of sectors and we welcome this constructive reflection from the OGA today.

“It not only highlights areas where the UK offshore oil and gas industry and the regulator can make improvements, but also where the sector can build upon good practise. While the report looks at compliance in 2018, it is encouraging to see the OGA recognise the steps taken by industry since then that point to improvement in performance.

“However, there is always more that can be done and the recommendations provide practical and considered suggestions for both industry and the OGA to continue to improve and we look forward to building on this constructive approach.”

The OGA’s report can be found at https://www.ogauthority.co.uk/news-publications/news/2020/the-oga-stresses-key-role-of-licence-management-in-maximising-economic-recovery/

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Digital Decommissioning Conference aims for international connectivity

Decommissioning takes on a new global dimension as OGUK launches its first ever virtual conference to provide delegates with a dynamic, international and interactive online experience.

Taking place from November 24-25, the event goes beyond the confines of traditional conferences to provide a digital platform with potentially global reach enabling participants to drive new conversations about decommissioning in the broader energy world in a time of unprecedented change.

Throughout the two-day event, delegates gain access to a fully immersive experience enabling them to interact with industry experts, visit virtual exhibition stands and engage in online networking. Topics on the agenda include the UK’s ambition to become a Global Hub of Excellence, evolving developments in regulation and a focus on developing the skills needed to support future decommissioning needs.

Commenting, OGUK’s decommissioning manager Joe Leask said:

“Reliable and definitive information is invaluable in uncertain times. OGUK’s Offshore Decommissioning conference will draw on the expertise of leading figures in decommissioning from around the world, providing delegates with the latest insight on the pressures, challenges and opportunities on the horizon.

“Whatever the limitations imposed by Covid-19, this event is an ideal opportunity to engage with delegates and take stock of where the sector is, and where it fits into the global low carbon context.”

The diverse and topical programme will be supported by session champions that include experts from the Oil  and Gas Authority (OGA) and its Decommissioning Task Force; the International Association of Oil and Gas Producers (IOGP); the Oil and Gas Technology Centre (OGTC); Decom North Sea; Robert Gordon University, the Aberdeen section of the Society of Petroleum Engineers (SPE) and OGUK.

Representatives from the Health and Safety Executive (HSE), Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) and the OGA will be presenting at the event and delegates will also have the opportunity to use a multitude of online resources including videos, tools and presentations while contributing to live discussions via the chat channel.

More information is available at the Offshore Decommissioning Conference website and to register click here  

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Experts gather to support SMEs in OGUK Tendering webinar

OGUK’s commitment to ensuring the recovery of the UK’s hard-pressed oil and gas supply chain continues with a webinar aimed at providing small to medium enterprises (SMEs) with top tips for successful tendering.

Taking place online on Wednesday 30 September, the free event aims to help SMEs wishing to improve how they bid to supply goods or services to a potential buyer and learn from experts in the field.

Emily Taylor, OGUK’s continuous improvement manager, said:

“Feedback from participants in our latest SME forum revealed there’s a strong demand for expert advice on tendering and what companies can do to continuously improve their business.

“While SMEs are a vital sector of our world-class supply chain and the lifeblood of innovation and opportunity, many are in a fragile position and our aim is give them a deeper insight of what customers look for from a potential supplier during the tendering process.

“Experts speaking at the webinar include representatives from the operator, SME, legal and commercial communities who will each outline what good practice looks like from their individual perspectives.”

Industry experts speaking at the event which starts at 9.30 am – 11.00 am include:

Catriona Stevenson, Chair of the OGUK SME Forum and Business Manager, Ecosse IP Ltd

Anne Farr, Managing Director, Rothera Group Ltd

Steve Mitchellhill, Contract specialist, Mitchelhill Consulting

Edward Hughes, Head of Contracts & Procurement, INEOS

Chris West, Chief Operating Officer, Optimus

Following the webinar which is open to both OGUK members and non-members, online delegates will have the opportunity to participate in a panel session and learn about how they can make the best of the opportunities ahead. Registration is at https://attendee.gotowebinar.com/register/1282319039831698959

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OGUK responds to UK’s 32nd Offshore Licensing Round Awards announced by OGA

Commenting on the OGA’s announcement of the award offers in the 32nd Licensing Round

Katy Heidenreich, OGUK’s supply chain and operations director said:

“At a time when companies face huge pressures it is encouraging that our basin continues to demonstrate its attractiveness to a wide range of companies. This is a crucial element in unlocking the new investment that will help continue to meet UK energy needs and sustain jobs across our sector.
As a net importer of oil and gas it is critical that the UK continues to explore for and develop new resources in terms of energy security. Achieving this means we can continue to anchor our world-class expertise in the UK as our sector positions itself to play a key role in the transition to a lower carbon future as outlined in industry’s Roadmap 2035.”

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Major new report sets baseline to push greater progress in digitalisation

Findings from the first survey of digitalisation in the oil and gas industry reveal there’s a strong appetite to ensure technology is matured to improve the sector’s connectivity, efficiency and sustainability but highlight the need to promote collaborative working if these transformational changes are to become a reality.

With support from Deloitte, the UKCS Data and Digital Maturity Survey was launched in June 2020 by OGUK, the leading representative body for the UK offshore oil and gas industry, in partnership with the Technology Leadership Board (TLB), the Oil and Gas Technology Centre (OGTC), and Opportunity North East (ONE) to assess the maturity of digitalisation across the sector.

Compiled with input from a cross section of more than 70 organisations and almost 40 individuals, full details of the report will be shared at a free webinar chaired by Dr Dan Brown, Executive Director of OGUK subsidiary Common Data Access (CDA) together with CDA Delivery Manager Sakthi Norton on 1 September. Key speakers at the event will include:
• Mikki Corcoran, Co-Chair TLB
• Alex Macdonald, Digital Transformation Project Manager, OGTC
• Jared Owen, Director of Digital and Entrepreneurship, Opportunity North East (ONE)

Following the presentations, John Seabourn, Chief Digital Officer, OGA and Guri Neote Director of Deloitte Consulting’s Digital Capital Projects team will join the speakers in an interactive panel session.

Deirdre Michie, OBE OGUK Chief Executive, said:
“This timely report provides industry with an invaluable baseline for developing the strategies we need to realise the huge potential for digitalisation, enabling our industry to become more connected, efficient and sustainable in the process. Digitalisation is as much about culture as technology and the report highlights the importance of businesses working together to share ideas, challenge themselves and combine expertise to deliver the transformational change we need to spur our sector’s recovery and support an accelerated transition to net zero.”

Sir Ian Wood, KT GBE, Chair ONE, said,
“The report provides critical insight at a time when businesses of all sizes are having to adapt to major market and customer changes. While the industry is strong in the technical aspects of digital, it lacks the innovation mindset and culture to be decisive in digital transformation in relation to its peers. It is encouraging to see a strong desire for collaboration but it’s still not strong enough and we need to pick up the pace in this area if we are to fast-track progress. It’s imperative that we use the findings to collectively tailor action and catalyse a more digitally focused industry.”

Colette Cohen OBE, CEO of the Oil & Gas Technology Centre said:
“Digitalisation provides opportunities for increased efficiency, reduced carbon footprint and improved safety, which are crucial in the transition to a net zero future. This report shows that industry collaboration is the enabler, with the true potential of data being unlocked through a shared approach to industry challenges.”

Mikki Corcoran, Co-Chair TLB, Schlumberger, said
“Genuine digital transformation is fundamental to remaining a strategic energy supplier to the U.K. in a net zero world. Today we have the technology we need; leadership and vision are required to make this a reality on the UKCS.”

Graham Hollis, Office Senior Partner for Deloitte in Aberdeen added: “This report provides timely insight into the topics that matter most to businesses of all sizes operating across the UK’s oil and gas sector. It is promising to see the progress industry has made to date in its digital journey, however it is clear there remains many challenges that need to be overcome for industry to truly maximise the opportunity provided by digitalisation.”

The detailed survey report and summary slides can be found at the OGUK website

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OGUK welcomes trio to Board with industry focus on recovery efforts

 

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 recovery.

 

As UK Managing Director of gas-focused exploration and production company, Neptune Energy, Alexandra Thomas represents one of the leading independents investing in the UK North Sea. With international expertise in exploration and development, Alexandra brings 18 years’ oil and gas experience to OGUK’s board. She started her career on assignments with Shell and Equinor later working in senior leadership roles in the UK, Netherlands, Norway and Ghana, where she was Tullow Oil’s Head of Exploration, Development and Commercial before joining Neptune in 2020. An ardent promoter of diversity and inclusion in the workplace, Alexandra champions for women in engineering and technical roles and mentors a number of men and women in their career development.

 

 

 

 

BP’s Senior Vice President for the North Sea Emeka Emembolu has significant knowowledge of the company having joined the business in 1998. Since starting his career as a production engineer on bp’s ETAP development in the central North Sea, Emeka has worked in diverse technical and leadership roles in regions across the globe including the UK, Angola, Algeria, Egypt, Alaska and latterly Texas where he was Vice President, Reservoir Development for the Gulf of Mexico & Canada. Emeka is passionate about promoting STEM subjects and highlighting the potential for technology to deliver solutions to industry’s challenges.

 

 

 

 

 

As Regional Director for CHC Helicopter’s European, Middle East and African business, Mark Abbey has a wealth of aerospace and aviation experience built up over 35 years in the industry. Mark’s career has encompassed senior management positions in Europe, the USA, India and China. Earlier in his career, Mark spent 16 years at BAE Systems in an executive role managing their aircraft systems and operational facilities for assets including the Hawk Jet Trainer.

 

 

 

Deirdre Michie, OGUK’s chief executive, commented:

“The diverse experience and knowledge that Emeka, Mark and Alexandra bring to the OGUK Board will be a great asset as our industry tackles 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.

“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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