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Welcoming completion of the Neptune, Engie transaction Deirdre Michie, CEO of Oil & Gas UK said:

“Having an enterprising company like Neptune growing with the North Sea at the heart of its business is also good news for the future of the UK oil and gas industry.

“This transaction highlights that the UK oil and gas sector continues to offer smart investors good commercial opportunities on the back of the huge efficiency improvements of recent years.

“Our industry supports hundreds of thousands of jobs, energy security and provides billons of pounds to the UK economy. Its continued success requires investment like this.”

 

ENDS

Notes to Editors

 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577343 / [email protected]

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

 

Two new faces are among three key appointments announced today (Monday 12 February) by Oil & Gas UK as it adapts and evolves to fully meet its members’ needs.

Gareth Wynn has taken on the post of Director of the Stakeholder and Communications Team which includes external affairs, media relations, editorial and design, events and membership.

Gareth Wynn – Stakeholder and Communications Director

Matt Abraham – Supply Chain & HSE Director

With extensive stakeholder and communications experience and skills, Gareth moved from FTI Consulting where, as Senior Managing Director, he led its energy & natural resources strategic communications activity. He has served as Communications Director for several large international companies, including EDF Energy; one of his roles there was overseeing communications for the nuclear new build division, including the project to construct Hinkley Point C. Gareth has also run corporate affairs and public affairs teams for Powergen, Eon, Hertz Europe and British Gas.

Matthew Abraham is the new Director of the Supply Chain and Health, Safety and Environment Team, which also includes employment and skills, and continuous improvement, with a key focus on efficiency.

With strong supply chain and HSE chain experience, chartered engineer Matt, joins the trade body from Expro where, as Supply Chain Director, he was responsible for the global development and delivery of key supply chain functions. Having worked for several companies, including GE Oil & Gas and Vetco Gray, Matt ‘s knowledge of the supply chain and understanding of HSE operations will ensure these remain key focus areas for Oil & Gas UK.

And Karis Thain has taken over as Membership Relations Manager responsible for looking after all aspects of the trade body’s membership. Prior to this role, Karis was a Business Adviser in the Upstream team, and had a particular specialism in decommissioning.

Karis Thain – Oil & Gas UK Membership Relations Manager

 

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

“This is an exciting time for Oil & Gas UK. We have reshaped our organisation to ensure we are best placed to deal with the current business climate and the challenges and opportunities it brings. Plenty of prospects still remain on the UK Continental Shelf and our new people, and new teams, will ensure we target our resources where they can deliver as efficiently and effectively as possible for our members.”

ENDS

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

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

The chair of industry’s Efficiency Task Force has kicked off 2018 with a rallying call to his own employees

Phil Simons, ETF Chair

 

Phil Simons, VP North Sea and Canada at Subsea 7 and head of the industry-led efficiency initiative, urged his employees to “challenge the status quo” at an ETF roadshow held at his company’s Westhill campus on Thursday (8 February).

The roadshow is the first of a fresh programme of activity for 2018. It builds on the success of last year, where several offshore oil and gas companies hosted an ETF roadshow, reaching more than 500 workers.

Oil & Gas UK Continuous Improvement Manager Dr Mariesha Jaffray

Alasdair Morrison, Nexen Petroleum UK Subsea Manager

Scott Cameron, Project Manager Subsea 7

Speaking to Subsea 7 colleagues at the event, Phil Simons said:

“Promoting smarter ways of working is a serious business if we are serious about the future of our industry.

“In the past, bystanders have made easy assumptions that the UK’s oil and gas industry will slip back to old ways. Our recent successes put this myth to bed and show that our hard work is driving up the global competitiveness of the UK Continental Shelf.”

Phil Simons discussed how his company applied ETF initiatives. The event included a presentation from Oil & Gas UK highlighting efficiency initiatives taking place across the basin, and a collaborative session with operator Nexen as it outlined how it is applying the ETF’s subsea standardisation guideline to an ongoing project.

Amidst a growing cautious optimism in the sector, Mr Simons urged the audience to stay alert to industry’s efficiency drive:

“2018 is the year we need to ward against complacency and permanently embed new ways of working.  As tentative signs of improvement continue I encourage you all to challenge the status quo and champion efficiency.”

ETF Cultures Lead Mike Backus

Oil & Gas UK Lead Business Adviser Ross Dornan

 

Oil & Gas UK says two new exploration discoveries in the North Sea by a supermajor mark a more positive start to the year for the UK’s offshore industry.

BP today (Wednesday 31 January) announced successful discoveries in its Capercaillie and Achmelvich wells. The data of both wells is now under evaluation.

Oil & Gas UK Chief Executive Deirdre Michie said:

“BP’s exciting discovery marks a more positive start to 2018 for UK exploration.

“Our competitive fiscal terms, and the strides we have made to bring our finding costs in line with our peers, make the UKCS a very attractive basin for doing business.

“While industry continues to build on its efficiency programme, Oil & Gas UK will continue to work closely with stakeholders to ensure no stone is left unturned in our efforts to maximise economic recovery from the basin.” 

Ends 

Notes to Editors

Issued by the Communications Team, Oil & Gas UK.

Contact Communications Manager Jennifer Phillips 01224 577279 / [email protected],

Communications Adviser Lucy Gordon 01224  577331 [email protected] / Communications Adviser Natalie Coupar 01224 577343 [email protected] / Communications Adviser Lucy Buglass 020 7802 2404 [email protected]

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

Welcoming news today that Spirit Energy is to drill a new well in the Chiswick field in the Southern North Sea, Oil & Gas UK Chief Executive Deirdre Michie said:

“Spirit Energy’s announcement provides evidence that recent merger and acquisition activity is driving much needed capital investment into the UK Continental Shelf.

“Its infill well in the Chiswick field adds more momentum behind efforts to increase recovery from the basin, highlighting the continued appeal of investment in brownfield reserves which we expect to see more of throughout the year.”

Ends

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar on 01224 577343 / [email protected]

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

Problem Statement 

Facilities in late life no longer require their nameplate production capacities.

Retaining the process as designed can lead to unnecessary operational expenditure costs. In September 2017 an operator requested we use our proprietary tool MeasCap to assess their facility’s capacity and identify options to reduce cost.

Aims

  • Undertake external review of facility rationalisation to identify the most efficient means of processing the fluids
  • Identify process modifications to reduce operational expenditure (OPEX) while minimising capital expenditure spend.
  • Options must consider impact on availability and production capacity, and demonstrate financial impact
  • Focus on short-term, high impact areas which achieve quick results

Method

  • We quickly reviewed current overall capacity versus demand using Atkins’ proprietary MeasCap software, to identify areas of over/under utilisation.
  • We systematically identified options to remove excess capacity on a system and platform level, and used MeasCap to debottleneck equipment.
  • The best individual options were then combined to determine any additional benefits e.g. utility efficiencies.
  • Each option was conceptually assessed to understand OPEX savings and ability to meet target production in terms of capacity & availability with CAPEX for debottlenecking modifications estimated.
  • These financial implications were combined to give NPV per option to enable comparison, and develop the optimum rationalisation timeline.
  • Results were presented to the client management team and documented in the study report.

Impact

 

Multiple attractive options identified to reduce OPEX, minimise CAPEX and result in a positive NPV* – some examples below:

Option Impact on production CAPEX (US $) OPEX Saving/yr (US $) NPV ($)
Decommission Platform A Separation Train Sufficient capacity, reduced availability 7M 7M 36M
Smaller oil export pumps Sufficient capacity 15M 9M 39M
Decommission Platform A Power Gen 3M 1M 3M
Combined option 1 Sufficient capacity, reduced availability 18M 17M 43M
Combined option 2 26M 21M 22M

*NPV takes into account CAPEX, OPEX, lost production, availability impacts and discount factor

  • Use of MeasCap and Atkins expertise allowed an effective study of minimal duration – 6 week study costing ~ £50k.

Potential OPEX savings 

$15M – $20M / year

Savings using MeasCap 

~ 3 weeks quicker

~ £25k less

An award-winning new service which harnesses data to predict downtime and the performance of oil and gas production systems has been touted as a positive example of innovation in the sector.

By applying predictive data analysis methods already deployed in alternative industries, including aviation, predictive technology specialists Operational Excellence (OPEX) Group has worked with companies in the oil and gas sector to reduce costly critical system failures.

The data-driven approach takes information from a range of sources to understand what a “perfect day’s operation” looks like.  This digital model can then be used to identify threats and emerging issues across an entire system in advance, enabling decisions and interventions to maximise production uptime.

A case study regarding OPEX’s predictive analysis service is highlighted on the Efficiency Hub, industry’s online gateway to initiatives that aim to improve efficiency across the UK Continental Shelf. The Hub is the flagship tool of Oil & Gas UK’s Efficiency Task Force, led by industry for industry.

ETF Chairman Phil Simons, VP North Sea & Canada for Subsea 7, said:

“The UKCS is at the forefront of a digital transformation which is unlocking the power of data.

“The offshore oil and gas industry has a wealth of information at its disposal. Harnessing new methods and technologies to mine that information, and openly sharing the results, is good news for everyone in the sector.

“This is a perfect example of innovation in industry which promotes smarter and more effective ways of working.”

OPEX VP of Operations, Chris Ayres, said:

“Oil and gas operators have a significant opportunity to secure additional production revenue by unlocking the immense value in their operational data.

“By bridging the gap between data science and oil and gas operations, our Predictive Analysis Service, known as X-PAS™, opens up a whole new approach to operating and maintaining critical systems.

“Each of our customers is different, but our experience has shown a typical 2-5% improvement in production and a 50% reduction in critical system outages.  With the right level of adoption, services like X-PAS™ and other digital solutions could have a substantial impact on the basin as a whole.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar on 01224 577343 / [email protected]

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

The Efficiency Task Force, facilitated by Oil & Gas UK, is run by industry for industry.  The ETF aims to seek out, promote and provide access to efficient practice across the oil and gas industry while maintaining safe operations.

  1. Full details of this case study can be found the Efficiency Hub
  2. OPEX won the award for Business Innovation (SME) at this year’s Oil & Gas UK awards.

Phil Simons, VP North Sea and Canada at Subsea 7, recently took on the reins as chair of industry’s Efficiency Task Force. We find out more about the efforts of the task force to seek out, promote and provide access to efficient practice across the oil and gas industry while maintaining safe operations.

Get involved: visit the Efficiency Hub or join the conversation using #ogEfficiency 

Merger and acquisition (M&A) activity on the UK Continental Shelf (UKCS) has surpassed $8bn this year in a clear sign that confidence is gradually returning to the basin, says Oil & Gas UK’s newly launched Market Insight.

The new Insight – which gives the most recent overview of the current business environment as well as operational trends and performance on the UKCS – says that the recent increase in M&A activity in the basin should help to attract new investment over the next couple of years.

There are also signs that a number of significant projects could secure approval in the new year, offering a more positive outlook for the whole industry in 2018.

Mike Tholen, Oil and Gas UK’s Upstream Policy Director, said: “This year has been a very busy one for M&A activity which must be seen as a sign that confidence is returning the basin. Now with Transferable Tax History (TTH) in play, we expect that M&A activity will continue into 2018 as established players can more easily divest their non-core assets to companies better suited to invest in them and extend field life.

“Analysis shows that when an asset changes operatorship, average field life extension of nearly five years is achieved, and I am confident that trend will continue to shape the future of the UKCS.”

Although larger discoveries are still being made in the UK – with the basin’s technical exploration success topping 300 million barrels of oil equivalent for a second consecutive year – the Market Insight, which has a special section on wells, notes that challenges do still exist within the drilling and wells area of the industry.

The low level of development drilling during 2017 is of particular concern, with just 63 wells drilled during the first three quarters of the year.

Mr Tholen added: “Oil and Gas UK’s Wells Forum is working with the industry on a basin-wide performance improvement strategy which will help to make well construction a more efficient and cost-effective process.

“Success in our wells strategy will create a virtuous circle to help unlock more opportunities on the UKCS.”

Oil & Gas UK plans to release a Market Insight Report every six months, with each issue featuring a different area of focus.

Read the first Market Insight Report 2017 here.

ENDS

Notes to editors:

Oil & Gas UK’s Market Intelligence Manager Adam Davey is available for interview. To arrange, contact Communications Manager Jennifer Phillips 01224 577279 / [email protected], Communications Adviser Lucy Gordon 01224  577331 / [email protected] or Communications Adviser Natalie Coupar 01224 577343 / [email protected]

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

An event celebrating offshore safe practise and a professional qualification for oil and gas data managers have been shortlisted at an awards ceremony taking place tonight (Thursday, 14 December) recognising excellence in membership organisations.

The Offshore Safety Awards 2017 – organised by Oil & Gas UK and Step Change in Safety – is shortlisted for the Best Conference Development award.

And Oil & Gas UK subsidiary company Common Data Access – CDA – is recognised for its innovative Graduate Certificate in Petroleum Data Management and has been shortlisted for the Best eLearning/Online Education award.

The industry bodies today welcomed the recognition ahead of the UK Association Awards Ceremony taking place in Manchester.

Oil & Gas UK Chief Executive Deirdre Michie said:

“As the leading trade body for the UK’s offshore oil and gas industry, Oil & Gas UK is proud to work closely with our partners to deliver the best events and services to our members. To have been shortlisted for two awards reflects our industry’s continued commitment to excellence and we wish the teams every success this evening.”

Step Change in Safety Executive Director Les Linklater added:

“Working jointly with Oil & Gas UK to deliver the awards allows us to improve safety and effect change through collaboration. These awards reflect our ambition to continually recognise the ongoing hard work and dedication of the men and women working in, what can sometimes be, a hostile and dangerous environment.”

CDA Chief Executive Malcolm Fleming said:

“We’re delighted that our course has been shortlisted for this award as it was designed with our members in mind. It is the first of its kind, available to be studied online, anywhere in the world and while in full-time employment. It shows the power of partnership working and we are particularly grateful to our academic partner, Robert Gordon University, whose involvement has been central to the early success of the course.”

Ends

Notes for editors

  1. The Association Awards is an initiative established to recognize excellence in leadership, development and service in membership organisations, delivered by the Association of Associations Executives, which has been recognising and promoting excellence in associations since 2006, to it’s 15,000+ members.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

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

Oil & Gas UK today welcomed a new initiative to spur innovation in the UK’s offshore oil and gas sector.

The Oil & Gas Technology Centre today launched TechX – a technology accelerator and incubator which aims to boost the UK’s offshore oil and gas industry through supporting 100 start-ups and 200 SMEs take their product to market faster.

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

“The basin’s complexity and stage of development present their own particular technology challenges so this is the right practical support the industry needs to help maximise the recovery of the UK’s offshore oil and gas resources.

“With significant estimated oil and gas volumes still to recover in the UK, there will be prizes for the trailblazers who can bring innovation and efficiency to the basin – and ultimately the opportunity to showcase supply chain talent and potential overseas, and I would urge anyone sitting with a good idea in their back pocket to apply.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

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

Commenting on the findings of the 27th Oil and Gas survey, conducted by Aberdeen & Grampian Chamber of Commerce in partnership with the Fraser of Allander Institute and KPMG, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“It’s heartening to see another report indicating confidence is returning to the UK Continental Shelf – a sentiment reinforcing the findings in our own Economic Report.

“Oil & Gas UK believes there is more optimism surrounding the future of the basin and this is partly reflected in the significant merger and acquisition activity we’ve been seeing over the past year. That said, we can’t be complacent, as there are parts of the supply chain still finding it very tough. So that’s why we must maintain our focus on sustaining our efficiency improvements and making the North Sea as competitive as it can be.

“We must attract more fresh investment into the basin to drive new activity and ensure we can recover the billions of barrels of oil and gas it still holds.”

ENDS

Notes to Editors

  1. Please find the press release and further information on the survey on the Aberdeen Grampian Chamber of Commerce website.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected]k or Lucy Gordon, Communications Adviser on 01224 577331 / [email protected] or Communications Adviser Natalie Coupar on 01224 577343 or [email protected]

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

Oil & Gas UK Chief Executive Deirdre Michie and Oil and Gas Authority Chief Executive Andy Samuel delivered a joint keynote speech at an event to improve competitiveness of wells in the UK Continental Shelf (UKCS).

The high profile backing further underlines the importance of securing safe and efficient drilling operations in efforts to maximise economic recovery from the basin.

 

(Front row, L-R, Rune Mesel, Andy Samuel, Bernice Walker, Deirdre Michie, Katy Heidenreich, Sandy Fettes, Second row, L-R, Will Hendry, Peter Brett, Pete Wilson)

Yesterday’s session (Tues 28 November) brought together professionals from across the sector to share progress on company and cross-industry efforts to improve the performance of wells.

It is the first of a series of fresh activity planned by Oil & Gas UK’s Wells Forum, which aims to make the UKCS the safest and most competitive mature basin in the world to drill.

Commenting, Oil & Gas UK’s Operations Optimisation Manager Katy Heidenreich said:

“This event underlines our proactive and collaborative approach towards understanding how industry can transform the competitiveness of UKCS wells.

“Our programme aims to unlock ways to achieve credible and sustainable costs with predictable delivery, which will in turn improve investor confidence.

“Exploration drilling in the UKCS remains at record low levels, with 2016 marking the first year since 1986 that fewer than 120 development wells were drilled in a year.

“Oil & Gas UK’s Wells Forum is taking concerted action through the Competitive Well Delivery Initiative to accelerate the development of discoveries, extend the life of existing assets and stimulate a rise in exploration activity. “

Ends

Notes for editors

 

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

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

An insight into how the North Sea decommissioning market will take shape over the next nine years is one of two key guides launched today (Tuesday, 28 November) at a major decommissioning conference organised by Oil & Gas UK and Decom North Sea.

An up-to-date overview of the decommissioning of offshore structures, known as steel piled jackets, will also be released at the St Andrews event, attracting around 500 delegates.

Speaking at the two-day conference, sponsored by Aberdeen Harbour Board, Oil & Gas UK’s upstream policy director, Mike Tholen, said:

“Now in its eighth year, we’ve broadened the scope of the 2017 issue of our popular Decommissioning Insight 2017 so that it now includes decommissioning activities off Norway, Denmark and the Netherlands as well as those on the UK Continental Shelf (UKCS).

“This additional information will help the supply chain better understand the demand for their service and expertise from now until 2025.

Key findings of the 2017 Decommissioning Insight include:

• From 2017 to 2025, decommissioning is forecast to take place on 349 fields across the four regions of the
North Sea:
• Six fields on the Danish Continental Shelf
• 23 fields on the Norwegian Continental Shelf
• 106 fields on the Dutch Continental Shelf
• 214 fields on the UKCS

And across these regions, the infrastructure scheduled for decommissioning includes:
• Over 200 platforms are forecast for complete or partial removal
• Close to 2,500 wells are expected to be plugged and abandoned
• Nearly 7,800 kilometres of pipeline are forecast to be decommissioned

When set against this wider context, the forecast for the UK reveals it is the largest market with decommissioning, as a proportion of total UKCS expenditure, increasing from 2 per cent in 2010 to 7 per cent in 2016, when the market was worth £1.2 billion. Operators forecast this figure will rise to 11 per cent (£1.8 billion) this year.

• From 2017 to 2025, £17 billion is forecast to be spent on decommissioning on the UKCS.

• Annual expenditure on the UKCS is forecast to remain consistent over the near term at £1.7- £2 billion per year which compares with £400-800 million on the Norwegian Continental Shelf and a forecast of between £650 million-800 million on the Dutch Continental Shelf

• Forty-six per cent – £7.9 billion – of the total UKCS decommissioning spend from 2017 to 2025 will be concentrated
in the central North Sea.

• The largest category of expenditure on the UKCS between 2017-2025 is well plugging and abandonment at 49 per cent – £8.3 billion.

Mr Tholen said: “With industry driving efficiency improvements which have led to a 16 per cent increase in UKCS production following a decade of decline, the sector is successfully controlling the cost of well plugging and abandonment. The Insight reveals that the average forecast cost for well P&A has fallen by five per cent in the central and northern North Sea and west of Shetland, and by four per cent in the southern North Sea and Irish Sea with further cost reductions predicted as the sector ensures decommissioning is carried out as cost- effectively as possible, while maintaining high safety and environmental standards.”

Lessons learnt from decommissioning projects since 2012 are gathered in Oil & Gas UK’s Steel Piled Jacket in the North Sea Region report which updates industry intelligence for decommissioning this type of offshore platform.

The report captures the experience gained from 63 projects that have decommissioned to date. Advances in health and safety, environment and technology, including cutting and lifting solutions, are among areas highlighted.

Mr Tholen added:

“These reports demonstrate the UK’s growing expertise in decommissioning and these capabilities have been developing alongside the industry’s focus on more productive activities in oil and gas production. They highlight that there is a very real opportunity for the UK’s decommissioning sector to develop competitive capabilities and become a champion of decommissioning excellence in the global arena. “

ENDS

Please click the following links for both the Decommissioning Insight 2017 report  Decommissioning of Steel Piled Jacket report

Notes to Editors:
Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected] or Lucy Gordon, Communications Adviser on 01224 577331 / [email protected] or Natalie Coupar on 01224 577343 or [email protected]

1. The Offshore Decommissioning conference 2017, run jointly by Decom North Sea and Oil & Gas UK, is taking place from 27 – 29 November at the Fairmont Hotel, St Andrews.

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

The newly-appointed chair of Oil & Gas UK’s Efficiency Task Force has praised the work of over 100 industry champions in improving the global competitiveness of the UK Continental Shelf.

 

At a recognition networking evening held in Aberdeen on Wednesday 22 November, ETF Chair Phil Simons outlined the ambitions of the pioneering task force as it looks to 2018.

The Vice President of North Sea and Canada for Subsea 7 rallied industry to continue its support for efficiency initiatives which have already seen the UK Continental Shelf deliver improvements to unit operating costs greater than in any other basin since 2014.

Over 60 professionals from across the oil and gas sector tasked with promoting efficiency within companies gathered at the event hosted at Nexen’s headquarters in Aberdeen. ETF Cultures Lead and Nexen’s VP Operations, Mike Backus, urged industry to continue to support efforts to seek out, promote and provide access to efficiency practice across the oil and gas industry.

 

Commenting, Efficiency Task Force chair Phil Simons said:

“With a network of champions working in companies right across the UK’s offshore oil and gas industry, the Efficiency Task Force continues to build the foundations for a more sustainable and globally competitive industry.

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

“From developing sector case studies for our dedicated Efficiency Hub to hosting our popular efficiency roadshows the network is an example of how the industry is working together to maximise economic recovery from the UK Continental Shelf.

“I would urge anyone looking to be at the forefront of industry efficiency to get involved, particularly as we look towards expanding our activities in the new year.”

The call follows the successful launch of an online Efficiency Hub earlier this year, providing a one-stop shop for efficiency initiatives which help industry improve its performance.

Efficiency champions are encouraged to:

  • Promote the Industry Behaviours Charter
  • Host on-site ‘efficiency roadshows’ which highlight cross-industry initiatives
  • Provide access to decision makers through a specific fast action point in order to escalate issues
  • Strengthen industry cooperation through continual improvement in, and support for, industry codes of practice, forums and standards,

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected] 

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

  1. The Efficiency Task Force (ETF) aims to seek out, promote and provide access to efficient practice across the oil and gas industry while maintaining safe operations.
  2. The full list of signatories to the Industry Behaviours Charter is published on the Oil & Gas UK Efficiency Hub.

 

The Chancellor today announced a tax measure that will unlock further investment in the UK North Sea by enabling more assets to change hands and allow new owners to provide fresh investment in many mature oil and gas fields.

Oil & Gas UK has been working constructively with HM Treasury for a number of years on measures to help further unlock asset trading in the UK North Sea and generate additional tax revenues.

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “We very much welcome the Chancellor’s action to enable the implementation of transferable tax history.  This is a vital step that can bring in new investment to increase recovery from existing fields and fund fresh investment which is key to generating activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning.

“While there have been a number of deal announcements in the basin over the last year, these have mostly been for less mature assets, have been extremely complicated and taken a very long time to negotiate. This tax measure should help complete deals more quickly and in a more efficient way.

“Prolonging the life of mature assets better allows the industry to deploy its skills and technology to maximise extraction of the UK’s oil and gas, increasing production tax revenues to the Exchequer and securing highly-skilled jobs.

“We note the measure is intended to be effective by November 2018 and are committed to work closely with Treasury to ensure the change delivers the intended outcome.”

Currently existing owners of oil and gas fields are unable to pass their tax history onto a buyer. This means the buyer perceives the field to be less attractive commercially, partly because they are unlikely to be able to access the same level of tax relief than the current owner when decommissioning.  Enabling the transfer of tax history allows the purchaser to value the asset on a similar basis to the vendor and removes a significant barrier to asset trading. Transferable tax history will not permit the purchaser to gain greater tax relief than the vendor and will be at no net cost to the Exchequer.

Deirdre Michie added: “We also welcome the Chancellor’s recommitment to the fiscal plan Driving Investment, a key request from Oil & Gas UK as it provides confidence for investors that the UKCS is a competitive basin in which to do business.”

Oil & Gas UK also notes that Treasury has announced a technical consultation on petroleum revenue tax deductions for decommissioning and, additionally, are providing clarification on how tariff income is treated within the ring-fenced corporation tax regime.  The trade body will work closely with its members and Treasury to ensure that these measures will help maximise economic recovery from the basin.

ENDS

Notes to Editors:

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

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

 

Following news from the Oil and Gas Authority that it has received 96 applications for 239 blocks in the 30th offshore oil and gas exploration licence round, Oil & Gas UK’s upstream policy director Mike Tholen said:

“With 68 companies bidding, many of which we know to be new entrants, this response can be viewed as a vote of confidence in the UK Continental Shelf.

“It offers early signs that the $8bn of merger and acquisition activity highlighted in our Economic Report is translating into activity in the basin. This will help realise as much of the 2-6 billion barrels of yet to find potential, particularly given the maturity of this licensing round and its large inventory of prospects and undeveloped discoveries.

“Whilst this reflects industry’s growing optimism, our interests now turn to how many awards will be given, and the commitments which follow.”

Ends

The results of a survey studying efforts by the UK’s offshore oil and gas industry to further work together will be published next month.

The UKCS Upstream Supply Chain Collaboration survey, jointly run by Oil & Gas UK and business advisory firm Deloitte, explores the motives and effectiveness of collaboration between supply chain companies and operators.

The report will be unveiled at a breakfast briefing event hosted by Oil & Gas UK in Aberdeen on Tuesday 5 December 2017. The 2016 report saw the UK’s offshore oil and gas industry clear the first hurdle in embracing effective collaboration, increasing its score from 6.1, out of a possible 10, in 2015 to 6.6 on the Collaboration Index. The Index was developed specifically to measure collaborative practices.

The event will be introduced by Oil & Gas UK’s Continuous Improvement Manager Dr Mariesha Jaffray, before the survey results are unveiled by Nick Clark, Director in Deloitte’s Strategy and Operations Consulting practice.

Speaking ahead of the event, Dr Mariesha Jaffray said:

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

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

Industry cultures champion and VP Upstream, Shell U.K. Steve Phimister and Andy Brown, Director of Operations for ECITB, the skills body for the engineering construction industry in Great Britain, will also speak at the event, which will be followed by a panel discussion.

Graham Hollis, Senior Partner for Deloitte in Aberdeen, which also sponsors this breakfast, said:  

“The last instalment of our collaboration survey demonstrated that the industry made significant steps towards a more collaborative future between 2015 and 2016. Given the continued focus by industry and stakeholders to address this in the past 12 months, we expect to see even more positive results this year. Our joint survey with Oil and Gas UK gives us an opportunity to reflect on the state of the North Sea, identify how collaboration is evolving, and outline ways the supply chain and operators can enhance how they work together.”

ENDS

Notes to Editors:

  1. Media are invited to attend the Driving Greater Collaboration breakfast briefing event.

 

Please confirm your attendance in advance with Natalie Coupar, Communications Adviser.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

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

 

1. Problem Statement

Needless over-issue of PPE Kits (316 duplicated kits issued to technicians in 2016)

2. Aims

  • To reduce the spend on initial issue PPE whilst ensuring individuals still receive PPE needed for their work prior to deployment offshore.

3. Method

  • Kaizen event that included the PPE supplier
  • Map current process and draw out issues causing overspend on PPE
  • Analyse the root causes to all the issues and identify their solutions
  • Build a detailed to-be process
  • Carry out the actions needed to run the new way of working
  • Track the benefits

4. Impact

  • Over-issue of kits reduced
  • 93% in 2017
  • 100% in the last 6 months
  • Despite a spike in recruitment with the up-man for a major hook-up contract.
  • Quantity of returned kits reduced
  • Measures implemented at minimal cost that makes the suppliers work easier (i.e. less expensive).
  • Benefits tracked for a year after and spend per person is still below target
  • Regular meetings with supplier set-up to ensure standard kit continues to contain best for purpose PPE.
  • 43% Cost avoidance during a major hook-up contract up-man

% cost avoided

43%

(Jun – Nov17)

1. Problem Statement

High rate of quality failures for Subsea Electronics Modules Top Covers coming from the manufacturer

Multiple inductions;

• Unnecessary training (hundreds of people going through up to 9 days each);

• Multiple journeys during recruitment process.

2. Aims

•To drastically improve the quality of Top Covers coming from the manufacturer

3. Method

  • Kaizen event that included the manufacturer.
  • Mapping  of the recruitment process & issues identified;
  • Root causes of 200 issues and solutions developed
  •  Root causes of all the Quality issues identified
  • Solutions to Quality root causes developed, tested and embedded
  •  Solutions to Process issues developed and embedded
  • Communications plan for rollout to all stakeholders
    (300 people).

4. Impact

  • All quality issues at point of acceptance for Aker Solutions eliminated
  • (a 99% improvement reported between Dec 2016 and June 2017 and 100% improvement reported between March and June 2017)
  • Rework removed, lead time reduced, and need for test fit at point of receipt eliminated
  • (2 people, 1 hr for 10 top covers per month)

Quality Improvement

100%

Submitted by Darren Clyde, Senior Lean Coach, Aker Solutions

Neptune transaction highlights UK oil and gas opportunities

Welcoming completion of the Neptune, Engie transaction Deirdre Michie, CEO of Oil & Gas UK said:

“Having an enterprising company like Neptune growing with the North Sea at the heart of its business is also good news for the future of the UK oil and gas industry.

“This transaction highlights that the UK oil and gas sector continues to offer smart investors good commercial opportunities on the back of the huge efficiency improvements of recent years.

“Our industry supports hundreds of thousands of jobs, energy security and provides billons of pounds to the UK economy. Its continued success requires investment like this.”

 

ENDS

Notes to Editors

 

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577343 / [email protected]

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

 

New faces at Oil & Gas UK

Two new faces are among three key appointments announced today (Monday 12 February) by Oil & Gas UK as it adapts and evolves to fully meet its members’ needs.

Gareth Wynn has taken on the post of Director of the Stakeholder and Communications Team which includes external affairs, media relations, editorial and design, events and membership.

Gareth Wynn – Stakeholder and Communications Director

Matt Abraham – Supply Chain & HSE Director

With extensive stakeholder and communications experience and skills, Gareth moved from FTI Consulting where, as Senior Managing Director, he led its energy & natural resources strategic communications activity. He has served as Communications Director for several large international companies, including EDF Energy; one of his roles there was overseeing communications for the nuclear new build division, including the project to construct Hinkley Point C. Gareth has also run corporate affairs and public affairs teams for Powergen, Eon, Hertz Europe and British Gas.

Matthew Abraham is the new Director of the Supply Chain and Health, Safety and Environment Team, which also includes employment and skills, and continuous improvement, with a key focus on efficiency.

With strong supply chain and HSE chain experience, chartered engineer Matt, joins the trade body from Expro where, as Supply Chain Director, he was responsible for the global development and delivery of key supply chain functions. Having worked for several companies, including GE Oil & Gas and Vetco Gray, Matt ‘s knowledge of the supply chain and understanding of HSE operations will ensure these remain key focus areas for Oil & Gas UK.

And Karis Thain has taken over as Membership Relations Manager responsible for looking after all aspects of the trade body’s membership. Prior to this role, Karis was a Business Adviser in the Upstream team, and had a particular specialism in decommissioning.

Karis Thain – Oil & Gas UK Membership Relations Manager

 

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

“This is an exciting time for Oil & Gas UK. We have reshaped our organisation to ensure we are best placed to deal with the current business climate and the challenges and opportunities it brings. Plenty of prospects still remain on the UK Continental Shelf and our new people, and new teams, will ensure we target our resources where they can deliver as efficiently and effectively as possible for our members.”

ENDS

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

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

Industry efficiency chair hosts first roadshow of 2018

The chair of industry’s Efficiency Task Force has kicked off 2018 with a rallying call to his own employees

Phil Simons, ETF Chair

 

Phil Simons, VP North Sea and Canada at Subsea 7 and head of the industry-led efficiency initiative, urged his employees to “challenge the status quo” at an ETF roadshow held at his company’s Westhill campus on Thursday (8 February).

The roadshow is the first of a fresh programme of activity for 2018. It builds on the success of last year, where several offshore oil and gas companies hosted an ETF roadshow, reaching more than 500 workers.

Oil & Gas UK Continuous Improvement Manager Dr Mariesha Jaffray

Alasdair Morrison, Nexen Petroleum UK Subsea Manager

Scott Cameron, Project Manager Subsea 7

Speaking to Subsea 7 colleagues at the event, Phil Simons said:

“Promoting smarter ways of working is a serious business if we are serious about the future of our industry.

“In the past, bystanders have made easy assumptions that the UK’s oil and gas industry will slip back to old ways. Our recent successes put this myth to bed and show that our hard work is driving up the global competitiveness of the UK Continental Shelf.”

Phil Simons discussed how his company applied ETF initiatives. The event included a presentation from Oil & Gas UK highlighting efficiency initiatives taking place across the basin, and a collaborative session with operator Nexen as it outlined how it is applying the ETF’s subsea standardisation guideline to an ongoing project.

Amidst a growing cautious optimism in the sector, Mr Simons urged the audience to stay alert to industry’s efficiency drive:

“2018 is the year we need to ward against complacency and permanently embed new ways of working.  As tentative signs of improvement continue I encourage you all to challenge the status quo and champion efficiency.”

ETF Cultures Lead Mike Backus

Oil & Gas UK Lead Business Adviser Ross Dornan

 

BP exploration discoveries mark positive start for North Sea in 2018

Oil & Gas UK says two new exploration discoveries in the North Sea by a supermajor mark a more positive start to the year for the UK’s offshore industry.

BP today (Wednesday 31 January) announced successful discoveries in its Capercaillie and Achmelvich wells. The data of both wells is now under evaluation.

Oil & Gas UK Chief Executive Deirdre Michie said:

“BP’s exciting discovery marks a more positive start to 2018 for UK exploration.

“Our competitive fiscal terms, and the strides we have made to bring our finding costs in line with our peers, make the UKCS a very attractive basin for doing business.

“While industry continues to build on its efficiency programme, Oil & Gas UK will continue to work closely with stakeholders to ensure no stone is left unturned in our efforts to maximise economic recovery from the basin.” 

Ends 

Notes to Editors

Issued by the Communications Team, Oil & Gas UK.

Contact Communications Manager Jennifer Phillips 01224 577279 / [email protected],

Communications Adviser Lucy Gordon 01224  577331 [email protected] / Communications Adviser Natalie Coupar 01224 577343 [email protected] / Communications Adviser Lucy Buglass 020 7802 2404 [email protected]

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

Oil & Gas UK welcomes Spirit Energy Chiswick Field investment

Welcoming news today that Spirit Energy is to drill a new well in the Chiswick field in the Southern North Sea, Oil & Gas UK Chief Executive Deirdre Michie said:

“Spirit Energy’s announcement provides evidence that recent merger and acquisition activity is driving much needed capital investment into the UK Continental Shelf.

“Its infill well in the Chiswick field adds more momentum behind efforts to increase recovery from the basin, highlighting the continued appeal of investment in brownfield reserves which we expect to see more of throughout the year.”

Ends

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar on 01224 577343 / [email protected]

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

New: Atkins – Process Rationalisation to Reduce Costs in Late Life

Problem Statement 

Facilities in late life no longer require their nameplate production capacities.

Retaining the process as designed can lead to unnecessary operational expenditure costs. In September 2017 an operator requested we use our proprietary tool MeasCap to assess their facility’s capacity and identify options to reduce cost.

Aims

  • Undertake external review of facility rationalisation to identify the most efficient means of processing the fluids
  • Identify process modifications to reduce operational expenditure (OPEX) while minimising capital expenditure spend.
  • Options must consider impact on availability and production capacity, and demonstrate financial impact
  • Focus on short-term, high impact areas which achieve quick results

Method

  • We quickly reviewed current overall capacity versus demand using Atkins’ proprietary MeasCap software, to identify areas of over/under utilisation.
  • We systematically identified options to remove excess capacity on a system and platform level, and used MeasCap to debottleneck equipment.
  • The best individual options were then combined to determine any additional benefits e.g. utility efficiencies.
  • Each option was conceptually assessed to understand OPEX savings and ability to meet target production in terms of capacity & availability with CAPEX for debottlenecking modifications estimated.
  • These financial implications were combined to give NPV per option to enable comparison, and develop the optimum rationalisation timeline.
  • Results were presented to the client management team and documented in the study report.

Impact

 

Multiple attractive options identified to reduce OPEX, minimise CAPEX and result in a positive NPV* – some examples below:

Option Impact on production CAPEX (US $) OPEX Saving/yr (US $) NPV ($)
Decommission Platform A Separation Train Sufficient capacity, reduced availability 7M 7M 36M
Smaller oil export pumps Sufficient capacity 15M 9M 39M
Decommission Platform A Power Gen 3M 1M 3M
Combined option 1 Sufficient capacity, reduced availability 18M 17M 43M
Combined option 2 26M 21M 22M

*NPV takes into account CAPEX, OPEX, lost production, availability impacts and discount factor

  • Use of MeasCap and Atkins expertise allowed an effective study of minimal duration – 6 week study costing ~ £50k.

Potential OPEX savings 

$15M – $20M / year

Savings using MeasCap 

~ 3 weeks quicker

~ £25k less

Big data revolution boosts offshore production

An award-winning new service which harnesses data to predict downtime and the performance of oil and gas production systems has been touted as a positive example of innovation in the sector.

By applying predictive data analysis methods already deployed in alternative industries, including aviation, predictive technology specialists Operational Excellence (OPEX) Group has worked with companies in the oil and gas sector to reduce costly critical system failures.

The data-driven approach takes information from a range of sources to understand what a “perfect day’s operation” looks like.  This digital model can then be used to identify threats and emerging issues across an entire system in advance, enabling decisions and interventions to maximise production uptime.

A case study regarding OPEX’s predictive analysis service is highlighted on the Efficiency Hub, industry’s online gateway to initiatives that aim to improve efficiency across the UK Continental Shelf. The Hub is the flagship tool of Oil & Gas UK’s Efficiency Task Force, led by industry for industry.

ETF Chairman Phil Simons, VP North Sea & Canada for Subsea 7, said:

“The UKCS is at the forefront of a digital transformation which is unlocking the power of data.

“The offshore oil and gas industry has a wealth of information at its disposal. Harnessing new methods and technologies to mine that information, and openly sharing the results, is good news for everyone in the sector.

“This is a perfect example of innovation in industry which promotes smarter and more effective ways of working.”

OPEX VP of Operations, Chris Ayres, said:

“Oil and gas operators have a significant opportunity to secure additional production revenue by unlocking the immense value in their operational data.

“By bridging the gap between data science and oil and gas operations, our Predictive Analysis Service, known as X-PAS™, opens up a whole new approach to operating and maintaining critical systems.

“Each of our customers is different, but our experience has shown a typical 2-5% improvement in production and a 50% reduction in critical system outages.  With the right level of adoption, services like X-PAS™ and other digital solutions could have a substantial impact on the basin as a whole.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Natalie Coupar on 01224 577343 / [email protected]

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

The Efficiency Task Force, facilitated by Oil & Gas UK, is run by industry for industry.  The ETF aims to seek out, promote and provide access to efficient practice across the oil and gas industry while maintaining safe operations.

  1. Full details of this case study can be found the Efficiency Hub
  2. OPEX won the award for Business Innovation (SME) at this year’s Oil & Gas UK awards.

Meet the Efficiency Task Force chair

Phil Simons, VP North Sea and Canada at Subsea 7, recently took on the reins as chair of industry’s Efficiency Task Force. We find out more about the efforts of the task force to seek out, promote and provide access to efficient practice across the oil and gas industry while maintaining safe operations.

Get involved: visit the Efficiency Hub or join the conversation using #ogEfficiency 

2017 M&A activity passes $8bn mark as confidence gradually returns to UKCS

Merger and acquisition (M&A) activity on the UK Continental Shelf (UKCS) has surpassed $8bn this year in a clear sign that confidence is gradually returning to the basin, says Oil & Gas UK’s newly launched Market Insight.

The new Insight – which gives the most recent overview of the current business environment as well as operational trends and performance on the UKCS – says that the recent increase in M&A activity in the basin should help to attract new investment over the next couple of years.

There are also signs that a number of significant projects could secure approval in the new year, offering a more positive outlook for the whole industry in 2018.

Mike Tholen, Oil and Gas UK’s Upstream Policy Director, said: “This year has been a very busy one for M&A activity which must be seen as a sign that confidence is returning the basin. Now with Transferable Tax History (TTH) in play, we expect that M&A activity will continue into 2018 as established players can more easily divest their non-core assets to companies better suited to invest in them and extend field life.

“Analysis shows that when an asset changes operatorship, average field life extension of nearly five years is achieved, and I am confident that trend will continue to shape the future of the UKCS.”

Although larger discoveries are still being made in the UK – with the basin’s technical exploration success topping 300 million barrels of oil equivalent for a second consecutive year – the Market Insight, which has a special section on wells, notes that challenges do still exist within the drilling and wells area of the industry.

The low level of development drilling during 2017 is of particular concern, with just 63 wells drilled during the first three quarters of the year.

Mr Tholen added: “Oil and Gas UK’s Wells Forum is working with the industry on a basin-wide performance improvement strategy which will help to make well construction a more efficient and cost-effective process.

“Success in our wells strategy will create a virtuous circle to help unlock more opportunities on the UKCS.”

Oil & Gas UK plans to release a Market Insight Report every six months, with each issue featuring a different area of focus.

Read the first Market Insight Report 2017 here.

ENDS

Notes to editors:

Oil & Gas UK’s Market Intelligence Manager Adam Davey is available for interview. To arrange, contact Communications Manager Jennifer Phillips 01224 577279 / [email protected], Communications Adviser Lucy Gordon 01224  577331 / [email protected] or Communications Adviser Natalie Coupar 01224 577343 / [email protected]

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

Oil and gas industry association shortlisted for two awards

An event celebrating offshore safe practise and a professional qualification for oil and gas data managers have been shortlisted at an awards ceremony taking place tonight (Thursday, 14 December) recognising excellence in membership organisations.

The Offshore Safety Awards 2017 – organised by Oil & Gas UK and Step Change in Safety – is shortlisted for the Best Conference Development award.

And Oil & Gas UK subsidiary company Common Data Access – CDA – is recognised for its innovative Graduate Certificate in Petroleum Data Management and has been shortlisted for the Best eLearning/Online Education award.

The industry bodies today welcomed the recognition ahead of the UK Association Awards Ceremony taking place in Manchester.

Oil & Gas UK Chief Executive Deirdre Michie said:

“As the leading trade body for the UK’s offshore oil and gas industry, Oil & Gas UK is proud to work closely with our partners to deliver the best events and services to our members. To have been shortlisted for two awards reflects our industry’s continued commitment to excellence and we wish the teams every success this evening.”

Step Change in Safety Executive Director Les Linklater added:

“Working jointly with Oil & Gas UK to deliver the awards allows us to improve safety and effect change through collaboration. These awards reflect our ambition to continually recognise the ongoing hard work and dedication of the men and women working in, what can sometimes be, a hostile and dangerous environment.”

CDA Chief Executive Malcolm Fleming said:

“We’re delighted that our course has been shortlisted for this award as it was designed with our members in mind. It is the first of its kind, available to be studied online, anywhere in the world and while in full-time employment. It shows the power of partnership working and we are particularly grateful to our academic partner, Robert Gordon University, whose involvement has been central to the early success of the course.”

Ends

Notes for editors

  1. The Association Awards is an initiative established to recognize excellence in leadership, development and service in membership organisations, delivered by the Association of Associations Executives, which has been recognising and promoting excellence in associations since 2006, to it’s 15,000+ members.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

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

Oil and gas innovators encouraged to seize funding opportunity

Oil & Gas UK today welcomed a new initiative to spur innovation in the UK’s offshore oil and gas sector.

The Oil & Gas Technology Centre today launched TechX – a technology accelerator and incubator which aims to boost the UK’s offshore oil and gas industry through supporting 100 start-ups and 200 SMEs take their product to market faster.

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

“The basin’s complexity and stage of development present their own particular technology challenges so this is the right practical support the industry needs to help maximise the recovery of the UK’s offshore oil and gas resources.

“With significant estimated oil and gas volumes still to recover in the UK, there will be prizes for the trailblazers who can bring innovation and efficiency to the basin – and ultimately the opportunity to showcase supply chain talent and potential overseas, and I would urge anyone sitting with a good idea in their back pocket to apply.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

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

27th oil and gas survey reinforces confidence returning to UK Continental Shelf

Commenting on the findings of the 27th Oil and Gas survey, conducted by Aberdeen & Grampian Chamber of Commerce in partnership with the Fraser of Allander Institute and KPMG, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“It’s heartening to see another report indicating confidence is returning to the UK Continental Shelf – a sentiment reinforcing the findings in our own Economic Report.

“Oil & Gas UK believes there is more optimism surrounding the future of the basin and this is partly reflected in the significant merger and acquisition activity we’ve been seeing over the past year. That said, we can’t be complacent, as there are parts of the supply chain still finding it very tough. So that’s why we must maintain our focus on sustaining our efficiency improvements and making the North Sea as competitive as it can be.

“We must attract more fresh investment into the basin to drive new activity and ensure we can recover the billions of barrels of oil and gas it still holds.”

ENDS

Notes to Editors

  1. Please find the press release and further information on the survey on the Aberdeen Grampian Chamber of Commerce website.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected]k or Lucy Gordon, Communications Adviser on 01224 577331 / [email protected] or Communications Adviser Natalie Coupar on 01224 577343 or [email protected]

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

Industry leaders top the bill at wells learning event

Oil & Gas UK Chief Executive Deirdre Michie and Oil and Gas Authority Chief Executive Andy Samuel delivered a joint keynote speech at an event to improve competitiveness of wells in the UK Continental Shelf (UKCS).

The high profile backing further underlines the importance of securing safe and efficient drilling operations in efforts to maximise economic recovery from the basin.

 

(Front row, L-R, Rune Mesel, Andy Samuel, Bernice Walker, Deirdre Michie, Katy Heidenreich, Sandy Fettes, Second row, L-R, Will Hendry, Peter Brett, Pete Wilson)

Yesterday’s session (Tues 28 November) brought together professionals from across the sector to share progress on company and cross-industry efforts to improve the performance of wells.

It is the first of a series of fresh activity planned by Oil & Gas UK’s Wells Forum, which aims to make the UKCS the safest and most competitive mature basin in the world to drill.

Commenting, Oil & Gas UK’s Operations Optimisation Manager Katy Heidenreich said:

“This event underlines our proactive and collaborative approach towards understanding how industry can transform the competitiveness of UKCS wells.

“Our programme aims to unlock ways to achieve credible and sustainable costs with predictable delivery, which will in turn improve investor confidence.

“Exploration drilling in the UKCS remains at record low levels, with 2016 marking the first year since 1986 that fewer than 120 development wells were drilled in a year.

“Oil & Gas UK’s Wells Forum is taking concerted action through the Competitive Well Delivery Initiative to accelerate the development of discoveries, extend the life of existing assets and stimulate a rise in exploration activity. “

Ends

Notes for editors

 

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

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

Two new reports to boost decommissioning intelligence

An insight into how the North Sea decommissioning market will take shape over the next nine years is one of two key guides launched today (Tuesday, 28 November) at a major decommissioning conference organised by Oil & Gas UK and Decom North Sea.

An up-to-date overview of the decommissioning of offshore structures, known as steel piled jackets, will also be released at the St Andrews event, attracting around 500 delegates.

Speaking at the two-day conference, sponsored by Aberdeen Harbour Board, Oil & Gas UK’s upstream policy director, Mike Tholen, said:

“Now in its eighth year, we’ve broadened the scope of the 2017 issue of our popular Decommissioning Insight 2017 so that it now includes decommissioning activities off Norway, Denmark and the Netherlands as well as those on the UK Continental Shelf (UKCS).

“This additional information will help the supply chain better understand the demand for their service and expertise from now until 2025.

Key findings of the 2017 Decommissioning Insight include:

• From 2017 to 2025, decommissioning is forecast to take place on 349 fields across the four regions of the
North Sea:
• Six fields on the Danish Continental Shelf
• 23 fields on the Norwegian Continental Shelf
• 106 fields on the Dutch Continental Shelf
• 214 fields on the UKCS

And across these regions, the infrastructure scheduled for decommissioning includes:
• Over 200 platforms are forecast for complete or partial removal
• Close to 2,500 wells are expected to be plugged and abandoned
• Nearly 7,800 kilometres of pipeline are forecast to be decommissioned

When set against this wider context, the forecast for the UK reveals it is the largest market with decommissioning, as a proportion of total UKCS expenditure, increasing from 2 per cent in 2010 to 7 per cent in 2016, when the market was worth £1.2 billion. Operators forecast this figure will rise to 11 per cent (£1.8 billion) this year.

• From 2017 to 2025, £17 billion is forecast to be spent on decommissioning on the UKCS.

• Annual expenditure on the UKCS is forecast to remain consistent over the near term at £1.7- £2 billion per year which compares with £400-800 million on the Norwegian Continental Shelf and a forecast of between £650 million-800 million on the Dutch Continental Shelf

• Forty-six per cent – £7.9 billion – of the total UKCS decommissioning spend from 2017 to 2025 will be concentrated
in the central North Sea.

• The largest category of expenditure on the UKCS between 2017-2025 is well plugging and abandonment at 49 per cent – £8.3 billion.

Mr Tholen said: “With industry driving efficiency improvements which have led to a 16 per cent increase in UKCS production following a decade of decline, the sector is successfully controlling the cost of well plugging and abandonment. The Insight reveals that the average forecast cost for well P&A has fallen by five per cent in the central and northern North Sea and west of Shetland, and by four per cent in the southern North Sea and Irish Sea with further cost reductions predicted as the sector ensures decommissioning is carried out as cost- effectively as possible, while maintaining high safety and environmental standards.”

Lessons learnt from decommissioning projects since 2012 are gathered in Oil & Gas UK’s Steel Piled Jacket in the North Sea Region report which updates industry intelligence for decommissioning this type of offshore platform.

The report captures the experience gained from 63 projects that have decommissioned to date. Advances in health and safety, environment and technology, including cutting and lifting solutions, are among areas highlighted.

Mr Tholen added:

“These reports demonstrate the UK’s growing expertise in decommissioning and these capabilities have been developing alongside the industry’s focus on more productive activities in oil and gas production. They highlight that there is a very real opportunity for the UK’s decommissioning sector to develop competitive capabilities and become a champion of decommissioning excellence in the global arena. “

ENDS

Please click the following links for both the Decommissioning Insight 2017 report  Decommissioning of Steel Piled Jacket report

Notes to Editors:
Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips on 01224 577279 / [email protected] or Lucy Gordon, Communications Adviser on 01224 577331 / [email protected] or Natalie Coupar on 01224 577343 or [email protected]

1. The Offshore Decommissioning conference 2017, run jointly by Decom North Sea and Oil & Gas UK, is taking place from 27 – 29 November at the Fairmont Hotel, St Andrews.

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

New efficiency chair commends oil and gas industry progress

The newly-appointed chair of Oil & Gas UK’s Efficiency Task Force has praised the work of over 100 industry champions in improving the global competitiveness of the UK Continental Shelf.

 

At a recognition networking evening held in Aberdeen on Wednesday 22 November, ETF Chair Phil Simons outlined the ambitions of the pioneering task force as it looks to 2018.

The Vice President of North Sea and Canada for Subsea 7 rallied industry to continue its support for efficiency initiatives which have already seen the UK Continental Shelf deliver improvements to unit operating costs greater than in any other basin since 2014.

Over 60 professionals from across the oil and gas sector tasked with promoting efficiency within companies gathered at the event hosted at Nexen’s headquarters in Aberdeen. ETF Cultures Lead and Nexen’s VP Operations, Mike Backus, urged industry to continue to support efforts to seek out, promote and provide access to efficiency practice across the oil and gas industry.

 

Commenting, Efficiency Task Force chair Phil Simons said:

“With a network of champions working in companies right across the UK’s offshore oil and gas industry, the Efficiency Task Force continues to build the foundations for a more sustainable and globally competitive industry.

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

“From developing sector case studies for our dedicated Efficiency Hub to hosting our popular efficiency roadshows the network is an example of how the industry is working together to maximise economic recovery from the UK Continental Shelf.

“I would urge anyone looking to be at the forefront of industry efficiency to get involved, particularly as we look towards expanding our activities in the new year.”

The call follows the successful launch of an online Efficiency Hub earlier this year, providing a one-stop shop for efficiency initiatives which help industry improve its performance.

Efficiency champions are encouraged to:

  • Promote the Industry Behaviours Charter
  • Host on-site ‘efficiency roadshows’ which highlight cross-industry initiatives
  • Provide access to decision makers through a specific fast action point in order to escalate issues
  • Strengthen industry cooperation through continual improvement in, and support for, industry codes of practice, forums and standards,

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected] 

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

  1. The Efficiency Task Force (ETF) aims to seek out, promote and provide access to efficient practice across the oil and gas industry while maintaining safe operations.
  2. The full list of signatories to the Industry Behaviours Charter is published on the Oil & Gas UK Efficiency Hub.

 

Trade body welcomes Budget green light to tax change that will unlock investment

The Chancellor today announced a tax measure that will unlock further investment in the UK North Sea by enabling more assets to change hands and allow new owners to provide fresh investment in many mature oil and gas fields.

Oil & Gas UK has been working constructively with HM Treasury for a number of years on measures to help further unlock asset trading in the UK North Sea and generate additional tax revenues.

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “We very much welcome the Chancellor’s action to enable the implementation of transferable tax history.  This is a vital step that can bring in new investment to increase recovery from existing fields and fund fresh investment which is key to generating activity for our hard-pressed supply chain. It will also help extend the lives of many mature fields and postpone decommissioning.

“While there have been a number of deal announcements in the basin over the last year, these have mostly been for less mature assets, have been extremely complicated and taken a very long time to negotiate. This tax measure should help complete deals more quickly and in a more efficient way.

“Prolonging the life of mature assets better allows the industry to deploy its skills and technology to maximise extraction of the UK’s oil and gas, increasing production tax revenues to the Exchequer and securing highly-skilled jobs.

“We note the measure is intended to be effective by November 2018 and are committed to work closely with Treasury to ensure the change delivers the intended outcome.”

Currently existing owners of oil and gas fields are unable to pass their tax history onto a buyer. This means the buyer perceives the field to be less attractive commercially, partly because they are unlikely to be able to access the same level of tax relief than the current owner when decommissioning.  Enabling the transfer of tax history allows the purchaser to value the asset on a similar basis to the vendor and removes a significant barrier to asset trading. Transferable tax history will not permit the purchaser to gain greater tax relief than the vendor and will be at no net cost to the Exchequer.

Deirdre Michie added: “We also welcome the Chancellor’s recommitment to the fiscal plan Driving Investment, a key request from Oil & Gas UK as it provides confidence for investors that the UKCS is a competitive basin in which to do business.”

Oil & Gas UK also notes that Treasury has announced a technical consultation on petroleum revenue tax deductions for decommissioning and, additionally, are providing clarification on how tariff income is treated within the ring-fenced corporation tax regime.  The trade body will work closely with its members and Treasury to ensure that these measures will help maximise economic recovery from the basin.

ENDS

Notes to Editors:

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

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

 

30th Offshore License Round reflects industry’s growing optimism

Following news from the Oil and Gas Authority that it has received 96 applications for 239 blocks in the 30th offshore oil and gas exploration licence round, Oil & Gas UK’s upstream policy director Mike Tholen said:

“With 68 companies bidding, many of which we know to be new entrants, this response can be viewed as a vote of confidence in the UK Continental Shelf.

“It offers early signs that the $8bn of merger and acquisition activity highlighted in our Economic Report is translating into activity in the basin. This will help realise as much of the 2-6 billion barrels of yet to find potential, particularly given the maturity of this licensing round and its large inventory of prospects and undeveloped discoveries.

“Whilst this reflects industry’s growing optimism, our interests now turn to how many awards will be given, and the commitments which follow.”

Ends

Latest industry collaboration efforts to be unveiled

The results of a survey studying efforts by the UK’s offshore oil and gas industry to further work together will be published next month.

The UKCS Upstream Supply Chain Collaboration survey, jointly run by Oil & Gas UK and business advisory firm Deloitte, explores the motives and effectiveness of collaboration between supply chain companies and operators.

The report will be unveiled at a breakfast briefing event hosted by Oil & Gas UK in Aberdeen on Tuesday 5 December 2017. The 2016 report saw the UK’s offshore oil and gas industry clear the first hurdle in embracing effective collaboration, increasing its score from 6.1, out of a possible 10, in 2015 to 6.6 on the Collaboration Index. The Index was developed specifically to measure collaborative practices.

The event will be introduced by Oil & Gas UK’s Continuous Improvement Manager Dr Mariesha Jaffray, before the survey results are unveiled by Nick Clark, Director in Deloitte’s Strategy and Operations Consulting practice.

Speaking ahead of the event, Dr Mariesha Jaffray said:

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

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

Industry cultures champion and VP Upstream, Shell U.K. Steve Phimister and Andy Brown, Director of Operations for ECITB, the skills body for the engineering construction industry in Great Britain, will also speak at the event, which will be followed by a panel discussion.

Graham Hollis, Senior Partner for Deloitte in Aberdeen, which also sponsors this breakfast, said:  

“The last instalment of our collaboration survey demonstrated that the industry made significant steps towards a more collaborative future between 2015 and 2016. Given the continued focus by industry and stakeholders to address this in the past 12 months, we expect to see even more positive results this year. Our joint survey with Oil and Gas UK gives us an opportunity to reflect on the state of the North Sea, identify how collaboration is evolving, and outline ways the supply chain and operators can enhance how they work together.”

ENDS

Notes to Editors:

  1. Media are invited to attend the Driving Greater Collaboration breakfast briefing event.

 

Please confirm your attendance in advance with Natalie Coupar, Communications Adviser.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Adviser Natalie Coupar on 01224 577 343  /  [email protected]

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

 

New: Aker Solutions – Kaizen: PPE

1. Problem Statement

Needless over-issue of PPE Kits (316 duplicated kits issued to technicians in 2016)

2. Aims

  • To reduce the spend on initial issue PPE whilst ensuring individuals still receive PPE needed for their work prior to deployment offshore.

3. Method

  • Kaizen event that included the PPE supplier
  • Map current process and draw out issues causing overspend on PPE
  • Analyse the root causes to all the issues and identify their solutions
  • Build a detailed to-be process
  • Carry out the actions needed to run the new way of working
  • Track the benefits

4. Impact

  • Over-issue of kits reduced
  • 93% in 2017
  • 100% in the last 6 months
  • Despite a spike in recruitment with the up-man for a major hook-up contract.
  • Quantity of returned kits reduced
  • Measures implemented at minimal cost that makes the suppliers work easier (i.e. less expensive).
  • Benefits tracked for a year after and spend per person is still below target
  • Regular meetings with supplier set-up to ensure standard kit continues to contain best for purpose PPE.
  • 43% Cost avoidance during a major hook-up contract up-man

% cost avoided

43%

(Jun – Nov17)

New: Aker Solutions – Kaizen: Subsea Electronics Module Top Cover

1. Problem Statement

High rate of quality failures for Subsea Electronics Modules Top Covers coming from the manufacturer

Multiple inductions;

• Unnecessary training (hundreds of people going through up to 9 days each);

• Multiple journeys during recruitment process.

2. Aims

•To drastically improve the quality of Top Covers coming from the manufacturer

3. Method

  • Kaizen event that included the manufacturer.
  • Mapping  of the recruitment process & issues identified;
  • Root causes of 200 issues and solutions developed
  •  Root causes of all the Quality issues identified
  • Solutions to Quality root causes developed, tested and embedded
  •  Solutions to Process issues developed and embedded
  • Communications plan for rollout to all stakeholders
    (300 people).

4. Impact

  • All quality issues at point of acceptance for Aker Solutions eliminated
  • (a 99% improvement reported between Dec 2016 and June 2017 and 100% improvement reported between March and June 2017)
  • Rework removed, lead time reduced, and need for test fit at point of receipt eliminated
  • (2 people, 1 hr for 10 top covers per month)

Quality Improvement

100%

Submitted by Darren Clyde, Senior Lean Coach, Aker Solutions