“Expanding Frontiers” is the theme for the tenth Offshore Decommissioning Conference, co-hosted by OGUK and Decom North Sea on November 25-27. The event will explore how by achieving step changes in its current mindset, the sector can make the most of potential business opportunities in the UK and global decommissioning markets.

With Forth and Tay Decommissioning as its principal sponsor, the two-day event at the Fairmont Hotel, St Andrews is expected to attract up to 500 people. Delegates will be encouraged by leading UK and international experts to think about new ways to help the sector build on its improving efficiency performance, grow business and support the energy transition.

Commenting, OGUK’s upstream policy director Mike Tholen said:

“Our ability to handle the growth of decommissioning activity that’s occurred over the past decade shows an industry coming of age.  As we will hear at the conference, and the tenth edition of our insight report will show, performance continues to improve with the UK’s decommissioning capability attracting increasing international interest.  There’s an exciting future ahead of us, decommissioning will present new opportunities to reuse old facilities and infrastructure for activities such as carbon capture and storage which will help the UK meet the net zero challenge in years to come.”

Decom North Sea’s chief executive, John Warrender said:

“The North Sea decommissioning market is a world leader. The Offshore Decommissioning Conference’s tenth anniversary is a timely opportunity, not only to reflect on how far the market has come, but also to herald the next generation of decommissioning capability and opportunity. The “Expanding Frontiers” title is apt; it encourages us to share our knowledge, globalise our expertise and build upon the disruptive technologies we’re creating. As the industry matures there’s increasing evidence of a developing market as new commercial models are introduced, aggregating workscopes and achieving economies of scale. This is an evolving industry and we must ensure we are prepared for upcoming challenges.”

Conference delegates will be among the first to hear from regulators including the HSE, OPRED and the OGA about a range of topical issues including recent government consultations on decommissioning and area planning relating to critical UK Continental Shelf infrastructure.

With a newly-introduced conference breakfast on day two, focusing on the government’s Call for Evidence on the UK’s position as a global decom hub, this year’s event also includes a spotlight on international players, the  introduction of a Technology Zone run by the Oil and Gas Technology Centre, a showcase for performance improvements in well decommissioning, plus a session focusing thoughts on how decommissioning will play a key role in the energy transition and future applications within the renewables sector.

ENDS

Following the new that Spirit Energy and partner Dana Petroleum have announced plans to drill a new well at Chestnut, around 125miles north-east of Aberdeen, which could keep it producing as far into the future as 2023,

OGUK’s supply chain director, Matt Abraham, said

“This continued commitment is a strong vote of confidence in the UKCS basin and demonstrates our supply chain expertise in extending the life of North Sea fields.  Realising successes like this in our home markets will be critical as we contribute to the energy transition through Roadmap 2035 and apply our world-leading capabilities both internationally and in other sectors.”

Link to news here

ENDS

Brexit, the growing prominence of private equity investors in the North Sea and decommissioning under scrutiny are among key themes at OGUK’s 2019 legal conference taking place on September 12 at Ardoe House Hotel, Aberdeen.

Offering in-house and private practice lawyers of all levels a deeper awareness of industry’s key issues, the full day event (followed by dinner at the hotel) also promotes knowledge-sharing and networking opportunities across the North Sea legal community.

Sam Dunkley, OGUK’s legal manager, said:

“As the basin continues to adapt to regulatory and political changes and continuing transfers of ownership, it is more useful than ever to bring upstream lawyers together to discuss current and anticipated legal and regulatory developments.

“Included in our packed agenda is an Oil and Gas Authority update on its evolving approach to regulation for Maximising Economic Recovery from the UKCS (MERUK) and the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) will share its views regarding financial capability for decommissioning.

There’ll be a focus on joint operating agreement (JOA) disputes, an introduction to the new model Sale and Purchase agreement being produced by the Association of International Petroleum Negotiators (AIPN) and case law updates.  We also have a panel discussion, an icebreaker and a final Q&A – seeking to make this event more interactive than ever.

“We’re very grateful to our principal sponsor CMS and supporting sponsor Clyde & Co for their support in helping us offer delegates an exciting and engaging one day event as the sector’s leading legal conference.”

The full agenda can be found here .

 

ENDS

A new tool aimed at providing operators and licensees with a framework to re-evaluate methods to improve recovery from existing North Sea oil and gas assets is launched today (Aug 21) on the OGUK website. Developed through industry collaboration, the tool provides a detailed process for identifying opportunities to learn from industry-leading practice.

An industry task group supporting the Oil and Gas Authority’s Asset Stewardship Task Force, created the Reserves Progression self-verification check-list tool to promote good practice, and information-sharing. Using it will help operators improve overall recovery rates and extend the productive life of the UK Continental Shelf.

Co-chair of the task group, Katy Heidenreich, said:

“Current data shows there are over 2 billion barrels of oil equivalent (boe) in near-field opportunities that could potentially be unlocked through the promotion of good practice and innovation.  Many of these opportunities may be marginal, technically difficult and geologically complex; this tool gives industry a consistent, integrated and systematic approach to progressing these resources and reserves. Improving our stewardship of these assets and collectively finding ways to increase the UKCS recovery factor from 43% means there’s an opportunity to add many millions of extra barrels of vital production using our existing infrastructure.”

Fellow co-chair, Tony McGarva, said:

“Companies can use the Reserves Progression checklist to identify, review and re-evaluate the potential opportunities for increasing oil and gas recovery in all aspects of their activities including reservoir management, well and production systems, and reassess where processes could be refined to unlock otherwise undeveloped reserves. With industry experts collaborating to develop this tool, it’s designed to be easily incorporated into current processes so helping to drive continuous improvement in performance.”

Scott Robertson, Co-Chair of Asset Stewardship Taskforce and Area Manager, Central North Sea for the Oil & Gas Authority said:

“The OGA has previously highlighted the 2bn boe resource prize that exists within existing producing fields, and I’m delighted that a small group of experts in progressing resource opportunities have combined their experience to develop this self-assessment tool.

“The tool incorporates good practices and leading behaviours, and operators will be able to use this tool to determine whether their organisations, processes, and procedures are set up to deliver oil and gas opportunities consistent with those operators who already do it well.”

The tool can be found here 

ENDS

Commenting on news that Equinor has today started up production from its Mariner field, OGUK Upstream Policy Director Mike Tholen said

“First oil from Mariner represents a significant achievement for Equinor and its pioneering development of the field, helping the company to become a major player in the UK sector of the North Sea with a long-lasting, positive impact on the region.

“As the largest offshore development in the UK for a decade, Mariner has utilised pioneering technology to bring on stream a field first discovered nearly 40 years ago. In doing so it has provided thousands of highly skilled jobs across the country during its development and will support many more in the years to come.

“The Mariner field will contribute towards energy security for the next 30 years. With up to three billion barrels of oil in place, it contributes to industry’s shared ambition Vision 2035 – which looks to meet as much of the UK’s oil and gas needs from home-produced resources as possible.”

ENDS

Industry’s focus on improving its competitiveness and playing its part in the move towards a new and lower carbon energy mix forms the core of OGUK’s 2019 annual conference on June 4-5, focusing on ‘An Industry in Transition’.

The programme for the event supported by principal sponsor, Total E&P UK Limited, at Aberdeen’s Exhibition and Conference Centre, features a diverse line-up of leading figures from across the sector who’ll consider how, from three different perspectives, energy, people and business, the industry is transitioning.

Deirdre Michie, OGUK’s chief executive, said:

“Finding new ways of working, promoting smarter use of technology and driving efficiency remain critical to the competitiveness of North Sea oil and gas production, supporting our aim of meeting as much of the UK’s energy needs as possible from our domestic resources. This industry is also actively involved in enabling the transition towards a lower carbon energy mix. Our ability to achieve these two goals depends on the skills and experience of our people today and tomorrow and the strategies we have in place to ensure existing and future generations develop the skills that equip us for the future.”

Key industry leaders Ariel Flores, BP; Dave Stewart, Wood and John Pearson from Petrofac will chair three separate business transition sessions. These will focus on efforts to accelerate the transition, better ways to unlock the UK North Sea’s potential together with the industry’s Efficiency Task Force and a session examining the impact of technology in delivering efficiency improvements.

The topics of workforce engagement and culture plus oil and gas skills development will feature in the people transition discussions. These include one led by John McDonald, OPITO plus additional activities aimed at encouraging new talent with transferable skills across different energy sectors.

Colette Cohen from the Oil and Gas Technology Centre (OGTC) will chair discussions on transformational technologies in the energy transition, while Roger Esson, OGTC will focus thoughts on the role of diversification within the sector with input from organisations including Scottish Renewables, represented by Claire Mack.

Vision 2035, the industry’s ambition to add at least another generation of productive life to the UK North Sea and expand supply chain opportunities will feature in the energy transition session which will feature input from John Pearson, Petrofac; Graham Bennett, DNVGL and Bjorn Johansen from Equinor.

More than 500 people attended OGUK’s conference last year – with leading figures from industry, government, the regulators, academic and other trade associations, and this year the event is also supported by Stratasys GmbH and Larsen & Toubro Infotech Ltd.

Places can be booked here.

 

Ends

From left: Matt Abraham, Rebecca Groundwater and Karis Thain

The leading representative body for the UK’s offshore oil and gas industry will next week head to a major international conference to champion the sector. OGUK’s supply chain director, Matt Abraham, will chair a sell-out business breakfast on May 7 during the Offshore Technology Conference in Houston, Texas.

With major global companies making room for newer operators on the UK Continental Shelf (UKCS), Matt will encourage an international panel of experts from companies including Simmons Energy, Wood Mackenzie, Burness Paull, Findlay Anderson, Baker Hughes GE and Baker Botts to consider the changing dynamics and potential opportunities for the supply chain.

Matt Abraham, OGUK’s supply chain director, said:

“We recognise we’re in a new reality, where it’s vital to embrace innovative business models and work co-operatively and the hard-won benefits of adopting this mindset are beginning to show. Sharpening our focus on efficiency improvements is enabling us to gain critical mass across the industry to help unlock new UKCS projects and hone our supply chain’s competitiveness so OTC provides the ideal platform to showcase these world-class capabilities.”

Matt will be joining OGUK’s membership relations manager, Karis Thain and lead external affairs adviser, Rebecca Groundwater in representing member companies and connecting with industry partners and stakeholders to gain deeper insight of the international opportunities available to the UK supply chain.

­“The UK supply chain has developed such competitive capabilities and skills, we believe it has a great opportunity to grow business in international markets and benefit from diversifying into other sectors,” added Mr Abraham.

ENDS

A sustained focus on cost and efficiencies with ongoing uncertainty in commodity markets marks the “new reality” for the UK’s offshore oil and gas sector, according to a flagship report into industry performance published today (Wednesday 20 March).

Oil & Gas UK’s (OGUK) Business Outlook 2019 finds continued uncertainty in commodity markets is reinforcing investor caution, with forecasts indicating a conservative outlook for prices. Against this backdrop, exploration and production companies remain focused on cost whilst striving for further business and operational improvements.

While the report finds 62 percent of contractor companies have an improved outlook for 2019, many areas of the supply chain are still experiencing challenges as industry emerges from one of its most difficult downturns.

New findings in the report reveal that £200bn will need to be spent by exploration and production companies in existing operations and new opportunities to realise industry’s Vision 2035, and adding a generation of productive life to the basin.

The report shows:

  • Production has increased by 20 percent over the past five years, following 14 years of decline.
  • Companies are looking to maintain unit operating costs at current levels, with operating expenditure running at around £7-7.5bn through 2019
  • Momentum is building around exploration activity, with up to 15 exploration wells expected in 2019, including several potentially high-impact prospects
  • Supply chain revenues are anticipated to stabilise aided by new capital approvals and operational investment, however pressures remain in some areas of the supply chain
  • The largest ten E&P companies accounted for just over half of production in 2018 compared to more than two-thirds in 2008, reflecting an increasingly diverse corporate landscape
  • Production from the UKCS continues to provide around 60 percent of the UK’s oil and gas demand reducing reliance on imports
  • Drilling activity – key to progressing resources to production – remains at a record-low rate
  • Despite the low level of activity, up to 485 million boe have been discovered so far from exploration wells drilled in 2018 – a similar total to discovered volumes in Norway but with 20 fewer wells
  • More new projects were approved in 2018 than the previous three years combined, unlocking over £3.3 billion of new capital investment and more than 400 million boe of new reserves – a similar number are expected in 2019
  • Around £200 billion will need to be spent to add a generation of productive life to the basin, providing significant opportunities for both supply chain and E&P companies.

Commenting, OGUK Chief Executive Deirdre Michie said:

“Our Business Outlook Report 2019 shows that industry’s approach during the downturn is delivering results. Following 14 years of decline, production has increased by a fifth over the past five years.  Cost improvements are being sustained and there is building momentum around exploration, with more new opportunities being drilled and the largest two conventional discoveries for a decade made in the second half of 2018.

“Our report finds an industry that’s getting better at what it does, getting smarter in how it does it and is well positioned to deliver attractive returns on investment within this environment, maintaining our global competitiveness. This is the new reality and we need to embrace it.

“However, challenges remain across parts of the supply chain, with revenues and margins still under pressure and cash flow stretched. If capabilities and resources are to stay anchored here in the UK, there must be a competitive proposition for supply chain companies to invest in too.

“With focus on adding a generation of productive life to the basin, our report reveals around £200 billion will need to be spent to find, develop and operate the reserves of the future.

“In a year in which output from the UK Continental Shelf met around 60 percent of primary UK oil and gas demand, the importance of our hard-fought investment conditions is reinforced – not only for our industry but for the UK economy.

“This is a UK industry which is critical for security of energy supply, at the heart of the move to a lower carbon economy, supports hundreds of thousands of jobs and contributes billions to the economy.

“With the new reality clear and clarity around the future potential, there is all to play for.”

Ends

The leading representative body for the UK’s offshore oil and gas industry has welcomed the Chancellor’s Spring Statement today.

Independent OBR figures published today demonstrate that the industry will contribute £8.5 billion in direct taxes to the Exchequer over the next five years and will continue to provide around half the nation’s oil and gas needs.

The government further launched the call for evidence on strengthening the UK’s offshore oil and gas decommissioning industry.

Speaking in response to the Spring Statement and call for evidence launch, Oil & Gas UK Chief Executive Deirdre Michie said:

“At a time when industry continues to face many uncertainties, fiscal and regulatory stability are key enablers to help the offshore industry realise the opportunities for decades to come in the North Sea.

“The £8.5 billion in direct taxes adds to the £350 billion already contributed over the last five decades. It reinforces the continued importance of our industry to the wider UK economy, supporting over 280,000 jobs, many of them highly skilled, and providing security of energy supply.

“We look forward to continuing our collaborative engagement with HMT and BEIS on the decommissioning call for evidence. The UK is leading the way as a decommissioning centre of excellence through both effective cost leadership and technical expertise. Working closely, we can together create an enduring benefit to both our world-class supply chain and the nation.”

 

 

ENDS

In response to the “Projections of UK Oil and Gas Production and Expenditure Report” published today by the Oil and Gas Authority, which says oil and gas production in the UK increased by more than 4% in 2018, Oil & Gas UK’s (OGUK) Upstream Policy Director, Mike Tholen said:

 

“This demonstrates that the approaches and strategies of exploration and production companies are paying off and we look forward to shedding more light on this when OGUK publishes our Business Outlook later this month.

 

“This is a significant milestone for an industry emerging from one of the toughest downturns in memory. However, in a competitive global market where the competition for investment is intense, it remains critical to maintain the fiscal and regulatory conditions which have supported this solid production performance delivered by industry.

 

“The UK’s offshore industry has a significant role to play enabling the transition to a lower carbon economy, part of that is ensuring we meet as much as possible of the national demand for oil and gas from domestic resources rather than from imports. Maintaining investment in our industry will be critical to our efforts to realise the full potential of the basin as outlined in Vision 2035.”

 

The report is available here

 

ENDS

 

Aberdeen,Friday 2nd November 2018
Pictured is ”The Oil Industry’s Best Kep Secret” Event at Spirit Energy, Aberdeen
Picture by Euan Duff / Abermedia

A leading advocate for diversity and inclusion in the offshore oil and gas industry will give a keynote speech on UK efforts at a prestigious international drilling conference later this week.

Katy Heidenreich, Upstream Operations Optimisations Manager at Oil & Gas UK, will address a special diversity and inclusion session at the SPE-IADC Drilling Conference being held at World Forum, the Hague, from 3 to 5 March.

Dubbed as the world’s premier drilling event, the conference attracts international operator companies, contractor firms and service companies to address challenges and deliver improved performance.

Speaking ahead of the conference, Katy Heidenreich said:

“This is an important opportunity to reflect on efforts to improve diversity and inclusion in our industry on an international stage. Since the launch of my book I’ve been overwhelmed by support from the UK’s offshore oil and gas industry as well as wider bodies responsible for promoting skills development.”

Responsible for promoting operational excellence and driving initiatives that align with the Maximising Economic Recovery Strategy, Katy has spent most of her career in the oil and gas industry working in technical and senior management roles in the UK, Norway and Azerbaijan. Katy also recently became a published author, releasing a book supported by OGUK focusing on the impact women have had on the oil and gas sector.

Katy Heidenreich adds:

“We know that meaningful diversity and inclusion has a real impact on companies bottom line, with reports showing gender diverse companies are 15 percent more likely to financially outperform those in the bottom quartile. For ethnically diverse companies this goes up to 35 percent and clearly demonstrates that diversity and inclusion is key in our efforts improve the competitiveness of the UK Continental Shelf.

“I look forward to shining a light on some of the great initiatives being led by UK companies to improve diversity and inclusion, and to learning about what more we can do to drive equality of opportunity.”

Ends

The leading representative body for the UK’s offshore oil and gas industry has today welcomed news INEOS is to invest £500m in the Forties Pipeline System as a vote of confidence in the future potential of the industry.

INEOS said today that the investment will transform the asset and extend the life of the pipeline by at least twenty years.

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

“Investment of this scale in the Forties pipeline system is a vote of confidence in the future potential of the UK North Sea. The rejuvenation of this critical infrastructure, embedded at the heart of industry for nearly 40 years, strengthens our aim to add another generation of productive life to the basin outlined in Vision 2035.

“The modernisation programme will provide operators with a greater degree of certainty when making investment decisions about the future development plans for their assets’.

 

ENDS

Oil & Gas UK has today welcomed the publication of the 2017 reconciliation report of the UK Extractive Industries Transparency Initiative (EITI), which confirmed the quality and integrity of the industry’s contribution to the UK economy.  EITI is a voluntary global standard, which promotes open and accountable management of natural resources through the reconciliation and disclosure of the revenues paid/received for a country’s natural resources between companies and the government.

Commenting on the report, Oil & Gas UK Fiscal Policy Manager Romina Mele-Cornish said:

“The 2017 EITI report shows that extractive industries added £22 billion in value to the UK economy, the vast proportion of which was delivered by the activities of the UK’s oil and gas industry. Even during the depth of the downturn, the report found that industry contributed £847 million in direct taxes to the Exchequer, adding to the £350 billion (in today’s money) already contributed over the last five decades.

“The report also highlights the continued importance of our industry to the wider UK economy, supporting over 200,000 jobs, many of them highly skilled, and providing security of energy supply.

“All our member companies in-scope of EITI have actively participated in the 2017 reconciliation.  This reflects industry’s commitment to this voluntary scheme in what is an important year for UK EITI as we progress through the international validation process.”

The report can be found here

Ends

Commenting on CNOOC’s announcement regarding a new gas discovery on the Glengorm prospect, Oil & Gas UK’s market intelligence manager, Ross Dornan, said:

“This is a major find and a great example of partner companies, CNOOC International, Total E&P and Edison working together to explore and unlock the potential of the UK Continental Shelf UKCS). Glengorm was a challenging prospect to drill, however the combined determination and perseverance of the partners has paid off. The location of the discovery, in the central North Sea, also provides a valuable opportunity to make use of the UKCS’ extensive infrastructure network.

Coming so soon after the Glendronach discovery in September, Glengorm is a major milestone towards adding another generation of productive life to the UK North Sea and realising the ambition of Vision 2035.”

 

ENDS

Oil & Gas UK Chief Executive Deirdre Michie said:

“A deal outcome is in the best interests of this industry, which is critical for security of energy supply and supports hundreds of thousands of skilled jobs right across the UK.

“We will continue to work with all parties and governments to inform the debate and encourage a constructive and timely approach to securing a deal which achieves the priorities identified by industry and can command the necessary political support.”

Our identified priorities are:

  1. Protecting the offshore industry from future EU regulatory changes.
  2. Minimal friction between the UK and EU.
  3. Maintaining a strong voice in Europe.
  4. Protecting energy trading and the internal energy market.
  5. Protecting our licence to operate.

The National Decommissioning Centre (NDC), a global technology R&D hub, was opened today by Lord Duncan, UK Government Minister for Scotland and Paul Wheelhouse MSP, Scottish Energy Minister in Newburgh in Aberdeenshire.

Oil & Gas UK’s chief executive, Deirdre Michie, said:

“The launch of the National Decommissioning Centre makes clear our ambition to become a trail-blazer in decommissioning.

The UK’s oil and gas industry is renowned across the globe thanks to its dynamic supply chain and expert capabilities.

With first mover advantage in the global decommissioning market and clear support from the government, regulators and industry, this exciting new facility will play a key role in driving our ambitions forward.”

More information about the centre is available here 

 

 

 

Report signals fresh investment for the UKCS in 2019

 

Commenting on the WoodMac report released today (Tuesday, January 8), which highlights five themes for the industry in 2019, including North Sea exploration and project investment, Mike Tholen, Oil & Gas UK’s Upstream Policy Director, said:

 

“This report builds on our analysis showing the positive future ahead if we continue to strive towards Vision 2035. OGUK will add more detail on the many exciting future opportunities for our industry in our flagship Business Outlook Report to be published in March this year.

 

“We have already seen the sector delivering improved performance, securing more project approvals in 2018 than in the last three years combined. Our challenge is to build on our successes to generate increased exploration activity.

 

“This is why we remain unwavering in our commitment to Vision 2035 which aims to add a generation of productive life to the basin and expand the supply chain’s global footprint.”

ENDS

 

Oil & Gas UK’s subsidiary LOGIC (Leading Oil & Gas Industry Competitiveness), publishes a new standard contract today (18 December) aimed at helping companies committed to delivering offshore decommissioning excellence. The standardisation of legal contracts, spearheaded by LOGIC in partnership with industry, improves the efficiency of drafting, executing and negotiating commercial agreements.

The not-for-profit organisation, which next year marks its 20th anniversary, continues to play a key role in helping companies improve competitiveness by simplifying transactional processes in the offshore oil and gas industry. More than 24,000 downloads of LOGIC’s suite of Standard Contracts have been recorded globally since April 2014.

Commenting, Graham Elgie, Managing Director of LOGIC said:

“This model contract developed by Oil & Gas UK’s Legal Issues Forum provides companies and their contractors with a framework for working towards commercial agreements in a timely, co-operative and effective manner. This couldn’t have been achieved without the support and expertise provided by industry, particularly the members on our Decommissioning Task Finish Group.

“Parties using this new model contract can reduce bidding costs, eliminate duplication of effort and streamline business processes enabling the UK to build on our growing reputation for effective cost leadership in decommissioning.”

The general conditions of contract for offshore decommissioning covers complete decommissioning of infrastructure, from cessation of production to delivery of structures to shore. It is available from the LOGIC website

In addition to the General Conditions of Contract for Offshore Decommissioning, LOGIC’s other Standard Contracts comprise:

  1. Construction Edition 2
  2. Design Edition 2
  3. Marine Construction Edition 2
  4. Mobile Drilling Rigs Edition 1
  5. Purchase of Goods Edition 3
  6. Services (On- and Offshore) Edition 3
  7. SME Services Edition 1
  8. Subcontract for SME Services Edition 1
  9. Supply of Major Items of Plant and Equipment Edition 3
  10. Well Services Edition 2

ENDS

Around 80 people attended a key industry event on Friday, December 7 where collaborative success stories between operators and the supply chain were showcased as part of a shared ambition to add a generation of productive life to the UK Continental Shelf.

Oil & Gas UK’s Efficiency Task Force (ETF) hosted the joint event with Shell U.K Limited in a bid to share best practice and learnings on how companies can best collaborate to reduce risk and increase efficiencies. The behaviour is key to industry-wide efforts to extend the life of the UK Continental Shelf, outlined in Vision 2035.

Vision 2035 is a framework for the industry’s shared future ambitions and aims to add a generation of life to the basin, whilst doubling the supply chain’s global footprint to ensure a lasting legacy.

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

“The Efficiency Task Force is a fantastic example of what can be achieved through collaboration. By putting trust, common goals and shared risk into business practices, companies are reaping the rewards, increasing their efficiencies, reducing their costs and sharing knowledge – ultimately maximising economic recovery from the basin.

“The UK’s offshore oil and gas industry is essential for security of energy supply, contributing billions to the economy and supporting hundreds of thousands of high-value jobs for many years to come.

“This event highlighted how far we have already come and while we are progressing towards delivering Vision 2035, we need to constantly raise the bar in terms of working harder and faster towards delivering the Vision.”

Speakers at the event included Deirdre Michie, CEO of Oil & Gas UK, Steve Phimister, Cultural Change Champion and VP of Upstream at Shell U.K Limited, and Phil Simons, Efficiency Task Force Chair, of Subsea 7.

Steve Phimister, of Shell U.K Limited, said: “Our ability to collaborate is central to the competitiveness of our basin. It comes down to our leadership and our behaviours – how we choose to work together across industry, supply chain and operators alike.

“We are making progress on the meaningful behavioural change required to improve our collaboration through active dialogue and changes in our ways of working. I’m encouraged that over 35 operator and supply chain companies have directly played their part this year.

“I believe we’re starting to get traction on sharing of best practice and learning from one another, as a key enabler to the delivery of Vision 2035. Collectively, we can build on this, challenging ourselves in 2019 to create new outcomes together and replicate solutions that increase investment in the basin and deliver value to many.”

The event allowed industry to check-in on collective progress across the basin, with the audience hearing case studies which highlighted successes from Nexen, Shell and Subsea 7, among others.

The ninth Offshore Decommissioning Conference run jointly by Oil & Gas UK and Decom North Sea, takes place from 26 – 28 November at the Fairmont Hotel, St Andrews, with around 450 industry professionals expected to attend.

Over the past decade, decommissioning of the North Sea’s oil & gas assets and infrastructure has steadily risen within the industry agenda. The Offshore Decommissioning Conference reflects this, having grown in stature to become the go-to event for those aiming to leverage North Sea mature basin expertise towards ensuring the UK becomes a world-class centre of decommissioning excellence.

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

“The decommissioning market is likely to remain pretty stable providing the UK supply chain with a steady work flow and an opportunity to develop highly exportable world-class capabilities. Decommissioning is becoming an integral part of the oil and gas industry and lessons learned from the growing number of completed projects are being applied to current and future projects to improve efficiency. Supporting the UK supply chain in developing competitive decommissioning capabilities is critical to our ability to compete for work both in the UK and maturing basins around the world.”

With annual decommissioning expenditure of £1.5-2 billion predicted over the next decade, the Oil and Gas Authority has set a decommissioning cost-reduction target of 35%.  Initiatives underpinning the industry’s drive to deliver this goal feature prominently on this year’s agenda including the drive to reduce well decommissioning costs; a focus on strategies that address the question of operators’ long- term liabilities and a review of the potential for innovative decommissioning contacting models and improving sector-wide efficiency of project delivery.

The impact of science and technology on decommissioning will be explored throughout the conference, where around 30 companies will be showcasing the technology and methodologies designed to address the challenges discussed during the event.

Commenting on the significance of the conference, John Warrender, Decom North Sea’s Chief Executive said:  “Decommissioning is no longer a thing of the future. Predictable operator project execution, better market visibility for the supply chain, improved regulatory engagement, together with aggregation and economies of scale, new technology and genuine knowledge-sharing are becoming critical and urgent issues that require collaborative industry attention.

“As the new Chief Executive of Decom North Sea, I am committed to ensuring that this year’s conference is geared towards addressing these issues, providing the industry’s most effective networking platform to help delegates develop solutions together.”

ENDS

 

 

 

 

Industry conference expands frontiers to drive new direction in decommissioning mindset

“Expanding Frontiers” is the theme for the tenth Offshore Decommissioning Conference, co-hosted by OGUK and Decom North Sea on November 25-27. The event will explore how by achieving step changes in its current mindset, the sector can make the most of potential business opportunities in the UK and global decommissioning markets.

With Forth and Tay Decommissioning as its principal sponsor, the two-day event at the Fairmont Hotel, St Andrews is expected to attract up to 500 people. Delegates will be encouraged by leading UK and international experts to think about new ways to help the sector build on its improving efficiency performance, grow business and support the energy transition.

Commenting, OGUK’s upstream policy director Mike Tholen said:

“Our ability to handle the growth of decommissioning activity that’s occurred over the past decade shows an industry coming of age.  As we will hear at the conference, and the tenth edition of our insight report will show, performance continues to improve with the UK’s decommissioning capability attracting increasing international interest.  There’s an exciting future ahead of us, decommissioning will present new opportunities to reuse old facilities and infrastructure for activities such as carbon capture and storage which will help the UK meet the net zero challenge in years to come.”

Decom North Sea’s chief executive, John Warrender said:

“The North Sea decommissioning market is a world leader. The Offshore Decommissioning Conference’s tenth anniversary is a timely opportunity, not only to reflect on how far the market has come, but also to herald the next generation of decommissioning capability and opportunity. The “Expanding Frontiers” title is apt; it encourages us to share our knowledge, globalise our expertise and build upon the disruptive technologies we’re creating. As the industry matures there’s increasing evidence of a developing market as new commercial models are introduced, aggregating workscopes and achieving economies of scale. This is an evolving industry and we must ensure we are prepared for upcoming challenges.”

Conference delegates will be among the first to hear from regulators including the HSE, OPRED and the OGA about a range of topical issues including recent government consultations on decommissioning and area planning relating to critical UK Continental Shelf infrastructure.

With a newly-introduced conference breakfast on day two, focusing on the government’s Call for Evidence on the UK’s position as a global decom hub, this year’s event also includes a spotlight on international players, the  introduction of a Technology Zone run by the Oil and Gas Technology Centre, a showcase for performance improvements in well decommissioning, plus a session focusing thoughts on how decommissioning will play a key role in the energy transition and future applications within the renewables sector.

ENDS

OGUK comments on Spirit Energy’s £140 million investment in Chestnut Field

Following the new that Spirit Energy and partner Dana Petroleum have announced plans to drill a new well at Chestnut, around 125miles north-east of Aberdeen, which could keep it producing as far into the future as 2023,

OGUK’s supply chain director, Matt Abraham, said

“This continued commitment is a strong vote of confidence in the UKCS basin and demonstrates our supply chain expertise in extending the life of North Sea fields.  Realising successes like this in our home markets will be critical as we contribute to the energy transition through Roadmap 2035 and apply our world-leading capabilities both internationally and in other sectors.”

Link to news here

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Timely insight on Brexit and other topical issues at industry legal conference

Brexit, the growing prominence of private equity investors in the North Sea and decommissioning under scrutiny are among key themes at OGUK’s 2019 legal conference taking place on September 12 at Ardoe House Hotel, Aberdeen.

Offering in-house and private practice lawyers of all levels a deeper awareness of industry’s key issues, the full day event (followed by dinner at the hotel) also promotes knowledge-sharing and networking opportunities across the North Sea legal community.

Sam Dunkley, OGUK’s legal manager, said:

“As the basin continues to adapt to regulatory and political changes and continuing transfers of ownership, it is more useful than ever to bring upstream lawyers together to discuss current and anticipated legal and regulatory developments.

“Included in our packed agenda is an Oil and Gas Authority update on its evolving approach to regulation for Maximising Economic Recovery from the UKCS (MERUK) and the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) will share its views regarding financial capability for decommissioning.

There’ll be a focus on joint operating agreement (JOA) disputes, an introduction to the new model Sale and Purchase agreement being produced by the Association of International Petroleum Negotiators (AIPN) and case law updates.  We also have a panel discussion, an icebreaker and a final Q&A – seeking to make this event more interactive than ever.

“We’re very grateful to our principal sponsor CMS and supporting sponsor Clyde & Co for their support in helping us offer delegates an exciting and engaging one day event as the sector’s leading legal conference.”

The full agenda can be found here .

 

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New industry tool to improve recovery from existing North Sea fields

A new tool aimed at providing operators and licensees with a framework to re-evaluate methods to improve recovery from existing North Sea oil and gas assets is launched today (Aug 21) on the OGUK website. Developed through industry collaboration, the tool provides a detailed process for identifying opportunities to learn from industry-leading practice.

An industry task group supporting the Oil and Gas Authority’s Asset Stewardship Task Force, created the Reserves Progression self-verification check-list tool to promote good practice, and information-sharing. Using it will help operators improve overall recovery rates and extend the productive life of the UK Continental Shelf.

Co-chair of the task group, Katy Heidenreich, said:

“Current data shows there are over 2 billion barrels of oil equivalent (boe) in near-field opportunities that could potentially be unlocked through the promotion of good practice and innovation.  Many of these opportunities may be marginal, technically difficult and geologically complex; this tool gives industry a consistent, integrated and systematic approach to progressing these resources and reserves. Improving our stewardship of these assets and collectively finding ways to increase the UKCS recovery factor from 43% means there’s an opportunity to add many millions of extra barrels of vital production using our existing infrastructure.”

Fellow co-chair, Tony McGarva, said:

“Companies can use the Reserves Progression checklist to identify, review and re-evaluate the potential opportunities for increasing oil and gas recovery in all aspects of their activities including reservoir management, well and production systems, and reassess where processes could be refined to unlock otherwise undeveloped reserves. With industry experts collaborating to develop this tool, it’s designed to be easily incorporated into current processes so helping to drive continuous improvement in performance.”

Scott Robertson, Co-Chair of Asset Stewardship Taskforce and Area Manager, Central North Sea for the Oil & Gas Authority said:

“The OGA has previously highlighted the 2bn boe resource prize that exists within existing producing fields, and I’m delighted that a small group of experts in progressing resource opportunities have combined their experience to develop this self-assessment tool.

“The tool incorporates good practices and leading behaviours, and operators will be able to use this tool to determine whether their organisations, processes, and procedures are set up to deliver oil and gas opportunities consistent with those operators who already do it well.”

The tool can be found here 

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Mariner start up represents significant achievement for Equinor

Commenting on news that Equinor has today started up production from its Mariner field, OGUK Upstream Policy Director Mike Tholen said

“First oil from Mariner represents a significant achievement for Equinor and its pioneering development of the field, helping the company to become a major player in the UK sector of the North Sea with a long-lasting, positive impact on the region.

“As the largest offshore development in the UK for a decade, Mariner has utilised pioneering technology to bring on stream a field first discovered nearly 40 years ago. In doing so it has provided thousands of highly skilled jobs across the country during its development and will support many more in the years to come.

“The Mariner field will contribute towards energy security for the next 30 years. With up to three billion barrels of oil in place, it contributes to industry’s shared ambition Vision 2035 – which looks to meet as much of the UK’s oil and gas needs from home-produced resources as possible.”

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Forward-looking industry conference focuses on trio of transition themes

Industry’s focus on improving its competitiveness and playing its part in the move towards a new and lower carbon energy mix forms the core of OGUK’s 2019 annual conference on June 4-5, focusing on ‘An Industry in Transition’.

The programme for the event supported by principal sponsor, Total E&P UK Limited, at Aberdeen’s Exhibition and Conference Centre, features a diverse line-up of leading figures from across the sector who’ll consider how, from three different perspectives, energy, people and business, the industry is transitioning.

Deirdre Michie, OGUK’s chief executive, said:

“Finding new ways of working, promoting smarter use of technology and driving efficiency remain critical to the competitiveness of North Sea oil and gas production, supporting our aim of meeting as much of the UK’s energy needs as possible from our domestic resources. This industry is also actively involved in enabling the transition towards a lower carbon energy mix. Our ability to achieve these two goals depends on the skills and experience of our people today and tomorrow and the strategies we have in place to ensure existing and future generations develop the skills that equip us for the future.”

Key industry leaders Ariel Flores, BP; Dave Stewart, Wood and John Pearson from Petrofac will chair three separate business transition sessions. These will focus on efforts to accelerate the transition, better ways to unlock the UK North Sea’s potential together with the industry’s Efficiency Task Force and a session examining the impact of technology in delivering efficiency improvements.

The topics of workforce engagement and culture plus oil and gas skills development will feature in the people transition discussions. These include one led by John McDonald, OPITO plus additional activities aimed at encouraging new talent with transferable skills across different energy sectors.

Colette Cohen from the Oil and Gas Technology Centre (OGTC) will chair discussions on transformational technologies in the energy transition, while Roger Esson, OGTC will focus thoughts on the role of diversification within the sector with input from organisations including Scottish Renewables, represented by Claire Mack.

Vision 2035, the industry’s ambition to add at least another generation of productive life to the UK North Sea and expand supply chain opportunities will feature in the energy transition session which will feature input from John Pearson, Petrofac; Graham Bennett, DNVGL and Bjorn Johansen from Equinor.

More than 500 people attended OGUK’s conference last year – with leading figures from industry, government, the regulators, academic and other trade associations, and this year the event is also supported by Stratasys GmbH and Larsen & Toubro Infotech Ltd.

Places can be booked here.

 

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Industry body to play key role at Houston’s international conference

From left: Matt Abraham, Rebecca Groundwater and Karis Thain

The leading representative body for the UK’s offshore oil and gas industry will next week head to a major international conference to champion the sector. OGUK’s supply chain director, Matt Abraham, will chair a sell-out business breakfast on May 7 during the Offshore Technology Conference in Houston, Texas.

With major global companies making room for newer operators on the UK Continental Shelf (UKCS), Matt will encourage an international panel of experts from companies including Simmons Energy, Wood Mackenzie, Burness Paull, Findlay Anderson, Baker Hughes GE and Baker Botts to consider the changing dynamics and potential opportunities for the supply chain.

Matt Abraham, OGUK’s supply chain director, said:

“We recognise we’re in a new reality, where it’s vital to embrace innovative business models and work co-operatively and the hard-won benefits of adopting this mindset are beginning to show. Sharpening our focus on efficiency improvements is enabling us to gain critical mass across the industry to help unlock new UKCS projects and hone our supply chain’s competitiveness so OTC provides the ideal platform to showcase these world-class capabilities.”

Matt will be joining OGUK’s membership relations manager, Karis Thain and lead external affairs adviser, Rebecca Groundwater in representing member companies and connecting with industry partners and stakeholders to gain deeper insight of the international opportunities available to the UK supply chain.

­“The UK supply chain has developed such competitive capabilities and skills, we believe it has a great opportunity to grow business in international markets and benefit from diversifying into other sectors,” added Mr Abraham.

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New reality could unlock £200bn of future business opportunities

A sustained focus on cost and efficiencies with ongoing uncertainty in commodity markets marks the “new reality” for the UK’s offshore oil and gas sector, according to a flagship report into industry performance published today (Wednesday 20 March).

Oil & Gas UK’s (OGUK) Business Outlook 2019 finds continued uncertainty in commodity markets is reinforcing investor caution, with forecasts indicating a conservative outlook for prices. Against this backdrop, exploration and production companies remain focused on cost whilst striving for further business and operational improvements.

While the report finds 62 percent of contractor companies have an improved outlook for 2019, many areas of the supply chain are still experiencing challenges as industry emerges from one of its most difficult downturns.

New findings in the report reveal that £200bn will need to be spent by exploration and production companies in existing operations and new opportunities to realise industry’s Vision 2035, and adding a generation of productive life to the basin.

The report shows:

  • Production has increased by 20 percent over the past five years, following 14 years of decline.
  • Companies are looking to maintain unit operating costs at current levels, with operating expenditure running at around £7-7.5bn through 2019
  • Momentum is building around exploration activity, with up to 15 exploration wells expected in 2019, including several potentially high-impact prospects
  • Supply chain revenues are anticipated to stabilise aided by new capital approvals and operational investment, however pressures remain in some areas of the supply chain
  • The largest ten E&P companies accounted for just over half of production in 2018 compared to more than two-thirds in 2008, reflecting an increasingly diverse corporate landscape
  • Production from the UKCS continues to provide around 60 percent of the UK’s oil and gas demand reducing reliance on imports
  • Drilling activity – key to progressing resources to production – remains at a record-low rate
  • Despite the low level of activity, up to 485 million boe have been discovered so far from exploration wells drilled in 2018 – a similar total to discovered volumes in Norway but with 20 fewer wells
  • More new projects were approved in 2018 than the previous three years combined, unlocking over £3.3 billion of new capital investment and more than 400 million boe of new reserves – a similar number are expected in 2019
  • Around £200 billion will need to be spent to add a generation of productive life to the basin, providing significant opportunities for both supply chain and E&P companies.

Commenting, OGUK Chief Executive Deirdre Michie said:

“Our Business Outlook Report 2019 shows that industry’s approach during the downturn is delivering results. Following 14 years of decline, production has increased by a fifth over the past five years.  Cost improvements are being sustained and there is building momentum around exploration, with more new opportunities being drilled and the largest two conventional discoveries for a decade made in the second half of 2018.

“Our report finds an industry that’s getting better at what it does, getting smarter in how it does it and is well positioned to deliver attractive returns on investment within this environment, maintaining our global competitiveness. This is the new reality and we need to embrace it.

“However, challenges remain across parts of the supply chain, with revenues and margins still under pressure and cash flow stretched. If capabilities and resources are to stay anchored here in the UK, there must be a competitive proposition for supply chain companies to invest in too.

“With focus on adding a generation of productive life to the basin, our report reveals around £200 billion will need to be spent to find, develop and operate the reserves of the future.

“In a year in which output from the UK Continental Shelf met around 60 percent of primary UK oil and gas demand, the importance of our hard-fought investment conditions is reinforced – not only for our industry but for the UK economy.

“This is a UK industry which is critical for security of energy supply, at the heart of the move to a lower carbon economy, supports hundreds of thousands of jobs and contributes billions to the economy.

“With the new reality clear and clarity around the future potential, there is all to play for.”

Ends

UK offshore industry welcomes Spring Statement

The leading representative body for the UK’s offshore oil and gas industry has welcomed the Chancellor’s Spring Statement today.

Independent OBR figures published today demonstrate that the industry will contribute £8.5 billion in direct taxes to the Exchequer over the next five years and will continue to provide around half the nation’s oil and gas needs.

The government further launched the call for evidence on strengthening the UK’s offshore oil and gas decommissioning industry.

Speaking in response to the Spring Statement and call for evidence launch, Oil & Gas UK Chief Executive Deirdre Michie said:

“At a time when industry continues to face many uncertainties, fiscal and regulatory stability are key enablers to help the offshore industry realise the opportunities for decades to come in the North Sea.

“The £8.5 billion in direct taxes adds to the £350 billion already contributed over the last five decades. It reinforces the continued importance of our industry to the wider UK economy, supporting over 280,000 jobs, many of them highly skilled, and providing security of energy supply.

“We look forward to continuing our collaborative engagement with HMT and BEIS on the decommissioning call for evidence. The UK is leading the way as a decommissioning centre of excellence through both effective cost leadership and technical expertise. Working closely, we can together create an enduring benefit to both our world-class supply chain and the nation.”

 

 

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Oil & Gas UK’s response to OGA’s forecast that UK oil and gas production has risen

In response to the “Projections of UK Oil and Gas Production and Expenditure Report” published today by the Oil and Gas Authority, which says oil and gas production in the UK increased by more than 4% in 2018, Oil & Gas UK’s (OGUK) Upstream Policy Director, Mike Tholen said:

 

“This demonstrates that the approaches and strategies of exploration and production companies are paying off and we look forward to shedding more light on this when OGUK publishes our Business Outlook later this month.

 

“This is a significant milestone for an industry emerging from one of the toughest downturns in memory. However, in a competitive global market where the competition for investment is intense, it remains critical to maintain the fiscal and regulatory conditions which have supported this solid production performance delivered by industry.

 

“The UK’s offshore industry has a significant role to play enabling the transition to a lower carbon economy, part of that is ensuring we meet as much as possible of the national demand for oil and gas from domestic resources rather than from imports. Maintaining investment in our industry will be critical to our efforts to realise the full potential of the basin as outlined in Vision 2035.”

 

The report is available here

 

ENDS

 

OGUK manager to champion UK diversity efforts on international stage

Aberdeen,Friday 2nd November 2018
Pictured is ”The Oil Industry’s Best Kep Secret” Event at Spirit Energy, Aberdeen
Picture by Euan Duff / Abermedia

A leading advocate for diversity and inclusion in the offshore oil and gas industry will give a keynote speech on UK efforts at a prestigious international drilling conference later this week.

Katy Heidenreich, Upstream Operations Optimisations Manager at Oil & Gas UK, will address a special diversity and inclusion session at the SPE-IADC Drilling Conference being held at World Forum, the Hague, from 3 to 5 March.

Dubbed as the world’s premier drilling event, the conference attracts international operator companies, contractor firms and service companies to address challenges and deliver improved performance.

Speaking ahead of the conference, Katy Heidenreich said:

“This is an important opportunity to reflect on efforts to improve diversity and inclusion in our industry on an international stage. Since the launch of my book I’ve been overwhelmed by support from the UK’s offshore oil and gas industry as well as wider bodies responsible for promoting skills development.”

Responsible for promoting operational excellence and driving initiatives that align with the Maximising Economic Recovery Strategy, Katy has spent most of her career in the oil and gas industry working in technical and senior management roles in the UK, Norway and Azerbaijan. Katy also recently became a published author, releasing a book supported by OGUK focusing on the impact women have had on the oil and gas sector.

Katy Heidenreich adds:

“We know that meaningful diversity and inclusion has a real impact on companies bottom line, with reports showing gender diverse companies are 15 percent more likely to financially outperform those in the bottom quartile. For ethnically diverse companies this goes up to 35 percent and clearly demonstrates that diversity and inclusion is key in our efforts improve the competitiveness of the UK Continental Shelf.

“I look forward to shining a light on some of the great initiatives being led by UK companies to improve diversity and inclusion, and to learning about what more we can do to drive equality of opportunity.”

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Forties Pipeline System investment is vote of confidence in North Sea future

The leading representative body for the UK’s offshore oil and gas industry has today welcomed news INEOS is to invest £500m in the Forties Pipeline System as a vote of confidence in the future potential of the industry.

INEOS said today that the investment will transform the asset and extend the life of the pipeline by at least twenty years.

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

“Investment of this scale in the Forties pipeline system is a vote of confidence in the future potential of the UK North Sea. The rejuvenation of this critical infrastructure, embedded at the heart of industry for nearly 40 years, strengthens our aim to add another generation of productive life to the basin outlined in Vision 2035.

“The modernisation programme will provide operators with a greater degree of certainty when making investment decisions about the future development plans for their assets’.

 

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Global transparency initiative confirms UK oil & gas industry net contributor to UK economy

Oil & Gas UK has today welcomed the publication of the 2017 reconciliation report of the UK Extractive Industries Transparency Initiative (EITI), which confirmed the quality and integrity of the industry’s contribution to the UK economy.  EITI is a voluntary global standard, which promotes open and accountable management of natural resources through the reconciliation and disclosure of the revenues paid/received for a country’s natural resources between companies and the government.

Commenting on the report, Oil & Gas UK Fiscal Policy Manager Romina Mele-Cornish said:

“The 2017 EITI report shows that extractive industries added £22 billion in value to the UK economy, the vast proportion of which was delivered by the activities of the UK’s oil and gas industry. Even during the depth of the downturn, the report found that industry contributed £847 million in direct taxes to the Exchequer, adding to the £350 billion (in today’s money) already contributed over the last five decades.

“The report also highlights the continued importance of our industry to the wider UK economy, supporting over 200,000 jobs, many of them highly skilled, and providing security of energy supply.

“All our member companies in-scope of EITI have actively participated in the 2017 reconciliation.  This reflects industry’s commitment to this voluntary scheme in what is an important year for UK EITI as we progress through the international validation process.”

The report can be found here

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Oil & Gas UK welcomes Glengorm discovery as a major find

Commenting on CNOOC’s announcement regarding a new gas discovery on the Glengorm prospect, Oil & Gas UK’s market intelligence manager, Ross Dornan, said:

“This is a major find and a great example of partner companies, CNOOC International, Total E&P and Edison working together to explore and unlock the potential of the UK Continental Shelf UKCS). Glengorm was a challenging prospect to drill, however the combined determination and perseverance of the partners has paid off. The location of the discovery, in the central North Sea, also provides a valuable opportunity to make use of the UKCS’ extensive infrastructure network.

Coming so soon after the Glendronach discovery in September, Glengorm is a major milestone towards adding another generation of productive life to the UK North Sea and realising the ambition of Vision 2035.”

 

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Statement on Brexit

Oil & Gas UK Chief Executive Deirdre Michie said:

“A deal outcome is in the best interests of this industry, which is critical for security of energy supply and supports hundreds of thousands of skilled jobs right across the UK.

“We will continue to work with all parties and governments to inform the debate and encourage a constructive and timely approach to securing a deal which achieves the priorities identified by industry and can command the necessary political support.”

Our identified priorities are:

  1. Protecting the offshore industry from future EU regulatory changes.
  2. Minimal friction between the UK and EU.
  3. Maintaining a strong voice in Europe.
  4. Protecting energy trading and the internal energy market.
  5. Protecting our licence to operate.

Launch of National Decommissioning Centre welcomed by Oil & Gas UK

The National Decommissioning Centre (NDC), a global technology R&D hub, was opened today by Lord Duncan, UK Government Minister for Scotland and Paul Wheelhouse MSP, Scottish Energy Minister in Newburgh in Aberdeenshire.

Oil & Gas UK’s chief executive, Deirdre Michie, said:

“The launch of the National Decommissioning Centre makes clear our ambition to become a trail-blazer in decommissioning.

The UK’s oil and gas industry is renowned across the globe thanks to its dynamic supply chain and expert capabilities.

With first mover advantage in the global decommissioning market and clear support from the government, regulators and industry, this exciting new facility will play a key role in driving our ambitions forward.”

More information about the centre is available here 

 

 

 

Oil & Gas UK responds to Wood Mackenzie upstream 2019 report

Report signals fresh investment for the UKCS in 2019

 

Commenting on the WoodMac report released today (Tuesday, January 8), which highlights five themes for the industry in 2019, including North Sea exploration and project investment, Mike Tholen, Oil & Gas UK’s Upstream Policy Director, said:

 

“This report builds on our analysis showing the positive future ahead if we continue to strive towards Vision 2035. OGUK will add more detail on the many exciting future opportunities for our industry in our flagship Business Outlook Report to be published in March this year.

 

“We have already seen the sector delivering improved performance, securing more project approvals in 2018 than in the last three years combined. Our challenge is to build on our successes to generate increased exploration activity.

 

“This is why we remain unwavering in our commitment to Vision 2035 which aims to add a generation of productive life to the basin and expand the supply chain’s global footprint.”

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Industry demonstrates cost leadership in developing first offshore decommissioning standard contract

 

Oil & Gas UK’s subsidiary LOGIC (Leading Oil & Gas Industry Competitiveness), publishes a new standard contract today (18 December) aimed at helping companies committed to delivering offshore decommissioning excellence. The standardisation of legal contracts, spearheaded by LOGIC in partnership with industry, improves the efficiency of drafting, executing and negotiating commercial agreements.

The not-for-profit organisation, which next year marks its 20th anniversary, continues to play a key role in helping companies improve competitiveness by simplifying transactional processes in the offshore oil and gas industry. More than 24,000 downloads of LOGIC’s suite of Standard Contracts have been recorded globally since April 2014.

Commenting, Graham Elgie, Managing Director of LOGIC said:

“This model contract developed by Oil & Gas UK’s Legal Issues Forum provides companies and their contractors with a framework for working towards commercial agreements in a timely, co-operative and effective manner. This couldn’t have been achieved without the support and expertise provided by industry, particularly the members on our Decommissioning Task Finish Group.

“Parties using this new model contract can reduce bidding costs, eliminate duplication of effort and streamline business processes enabling the UK to build on our growing reputation for effective cost leadership in decommissioning.”

The general conditions of contract for offshore decommissioning covers complete decommissioning of infrastructure, from cessation of production to delivery of structures to shore. It is available from the LOGIC website

In addition to the General Conditions of Contract for Offshore Decommissioning, LOGIC’s other Standard Contracts comprise:

  1. Construction Edition 2
  2. Design Edition 2
  3. Marine Construction Edition 2
  4. Mobile Drilling Rigs Edition 1
  5. Purchase of Goods Edition 3
  6. Services (On- and Offshore) Edition 3
  7. SME Services Edition 1
  8. Subcontract for SME Services Edition 1
  9. Supply of Major Items of Plant and Equipment Edition 3
  10. Well Services Edition 2

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Industry takes stock of collaboration efforts to drive Vision 2035

Around 80 people attended a key industry event on Friday, December 7 where collaborative success stories between operators and the supply chain were showcased as part of a shared ambition to add a generation of productive life to the UK Continental Shelf.

Oil & Gas UK’s Efficiency Task Force (ETF) hosted the joint event with Shell U.K Limited in a bid to share best practice and learnings on how companies can best collaborate to reduce risk and increase efficiencies. The behaviour is key to industry-wide efforts to extend the life of the UK Continental Shelf, outlined in Vision 2035.

Vision 2035 is a framework for the industry’s shared future ambitions and aims to add a generation of life to the basin, whilst doubling the supply chain’s global footprint to ensure a lasting legacy.

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

“The Efficiency Task Force is a fantastic example of what can be achieved through collaboration. By putting trust, common goals and shared risk into business practices, companies are reaping the rewards, increasing their efficiencies, reducing their costs and sharing knowledge – ultimately maximising economic recovery from the basin.

“The UK’s offshore oil and gas industry is essential for security of energy supply, contributing billions to the economy and supporting hundreds of thousands of high-value jobs for many years to come.

“This event highlighted how far we have already come and while we are progressing towards delivering Vision 2035, we need to constantly raise the bar in terms of working harder and faster towards delivering the Vision.”

Speakers at the event included Deirdre Michie, CEO of Oil & Gas UK, Steve Phimister, Cultural Change Champion and VP of Upstream at Shell U.K Limited, and Phil Simons, Efficiency Task Force Chair, of Subsea 7.

Steve Phimister, of Shell U.K Limited, said: “Our ability to collaborate is central to the competitiveness of our basin. It comes down to our leadership and our behaviours – how we choose to work together across industry, supply chain and operators alike.

“We are making progress on the meaningful behavioural change required to improve our collaboration through active dialogue and changes in our ways of working. I’m encouraged that over 35 operator and supply chain companies have directly played their part this year.

“I believe we’re starting to get traction on sharing of best practice and learning from one another, as a key enabler to the delivery of Vision 2035. Collectively, we can build on this, challenging ourselves in 2019 to create new outcomes together and replicate solutions that increase investment in the basin and deliver value to many.”

The event allowed industry to check-in on collective progress across the basin, with the audience hearing case studies which highlighted successes from Nexen, Shell and Subsea 7, among others.

Ninth offshore decommissioning conference to tackle cost and collaboration challenges

The ninth Offshore Decommissioning Conference run jointly by Oil & Gas UK and Decom North Sea, takes place from 26 – 28 November at the Fairmont Hotel, St Andrews, with around 450 industry professionals expected to attend.

Over the past decade, decommissioning of the North Sea’s oil & gas assets and infrastructure has steadily risen within the industry agenda. The Offshore Decommissioning Conference reflects this, having grown in stature to become the go-to event for those aiming to leverage North Sea mature basin expertise towards ensuring the UK becomes a world-class centre of decommissioning excellence.

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

“The decommissioning market is likely to remain pretty stable providing the UK supply chain with a steady work flow and an opportunity to develop highly exportable world-class capabilities. Decommissioning is becoming an integral part of the oil and gas industry and lessons learned from the growing number of completed projects are being applied to current and future projects to improve efficiency. Supporting the UK supply chain in developing competitive decommissioning capabilities is critical to our ability to compete for work both in the UK and maturing basins around the world.”

With annual decommissioning expenditure of £1.5-2 billion predicted over the next decade, the Oil and Gas Authority has set a decommissioning cost-reduction target of 35%.  Initiatives underpinning the industry’s drive to deliver this goal feature prominently on this year’s agenda including the drive to reduce well decommissioning costs; a focus on strategies that address the question of operators’ long- term liabilities and a review of the potential for innovative decommissioning contacting models and improving sector-wide efficiency of project delivery.

The impact of science and technology on decommissioning will be explored throughout the conference, where around 30 companies will be showcasing the technology and methodologies designed to address the challenges discussed during the event.

Commenting on the significance of the conference, John Warrender, Decom North Sea’s Chief Executive said:  “Decommissioning is no longer a thing of the future. Predictable operator project execution, better market visibility for the supply chain, improved regulatory engagement, together with aggregation and economies of scale, new technology and genuine knowledge-sharing are becoming critical and urgent issues that require collaborative industry attention.

“As the new Chief Executive of Decom North Sea, I am committed to ensuring that this year’s conference is geared towards addressing these issues, providing the industry’s most effective networking platform to help delegates develop solutions together.”

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