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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

The leading trade body for the UK’s offshore oil and gas industry, Oil & Gas UK, today signed a Memorandum of Understanding with the Society of Petroleum Engineers’ Aberdeen branch.

The agreement formalises the longstanding relationship between the two industry organisations.

Signatories Oil & Gas UK Chief Executive Deirdre Michie and SPE Aberdeen Chairman Ian Phillips pledged to work together on selected new technology-based events. This will provide an important platform for industry to share case studies, highlighting the value that innovative technology is bringing to the exploration and production lifecycle.

Commenting, Oil & Gas UK chief executive Deirdre Michie said:

“This is good news for the future of our industry and good news for the future generations of engineers who will work in the UK Continental Shelf.

“Oil & Gas UK and SPE Aberdeen have cooperated informally for many years; this MoU reflects our mutual desire to develop a closer relationship with each other.

“With focus continuing to shift towards society’s use of technology, Oil & Gas UK is keen to work with partners including SPE Aberdeen to achieve a more co-ordinated approach and ensure that events are leveraged to the best effect for the UK oil and gas industry.

“Whilst our plans are in their initial stages, our respective members can look forward to reaping the benefits of this partnership, which will include the joint delivery of relevant technical events.”

SPE Aberdeen Chair Ian Phillips said:

“Formalising our long-standing relationship with Oil & Gas UK will enable us to better access the operator case studies that can make our technical conferences much more relevant to our members.

“We envisage collaborating to bring this benefit to our existing events – and to develop new industry-driven technology conferences that can really make a difference”.

ENDS

Notes to Editors:

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

  1. Oil & Gas UK is the leading representative body for the UK North Sea oil and gas industry, acting on behalf of its corporate members across the full spectrum of operators and the supply chain. It hosts over 50 industry-leading events each year.
  2. Formed in 1957, the SPE is the largest individual-member organization serving managers, engineers, scientists and other professionals worldwide in the upstream segment of the oil and gas industry.

    The SPE aims to enable the global oil and gas E&P industry to share technical knowledge needed to meet the world’s energy needs in a safe and environmentally responsible manner.

    The SPE Aberdeen Section is one of the largest Sections across the world, serving over 3000 members, including 450 student members from five student chapters.  Any profits made are invested into supporting the educational and professional development of students and professionals in Scotland; STEM initiatives and scholarships to support students studying oil & gas related qualifications. The Aberdeen Section has won the SPE President’s Award for Excellence for eight consecutive years.

Problem Statement

Regardless of oil price, there is a need for service providers to add value to the operators and reduce supply chain costs of which marine are typically 20%.

Through vessel sharing, waste can be removed without any compromise to vessel integrity or service delivered offshore. This waste can often be 20 – 40% of vessel costs.

Aims

To create a sharing pool in Central North Sea, Central Northern North Sea and East Shetland Basin based on the learnings of the
existing pool in the Southern North Sea. A potential new pool is based on what operators want and need.

With an overarching principle of facilitating resource sharing rather than commercial gain to the logistics provider, our service provides transparent and cost- effective vessel schedules that benefit all members.

Method

Create a single pool management function which is facilitated by Peterson for the benefit of all members. It is needed and meets the requirements of all operators regardless of size. Indemnities and planning all agreed together on the basis of members interests and principles.

Impact

Operators have taken a long hard look Internally and challenged many of the existing behaviours which previously fuelled dedicated chartered vessels, namely their ability to plan and forecast requirements.

By being transparent with this planning information and creating an atmosphere of trust and collaboration, Peterson is able, as the facilitator to service their needs and still deal with any unplanned operational challenges they face.

This is achieved with no negative impact to operational service, whilst achieving a positive impact on cost base.

Total CO2 saved

1 x vessel x 365 x 8m3

= MT MGO

= MT CO2

Total savings 4 months
realised

  • Greater flexibility
  • More options to be serviced
  • Less reliance on unutilised
    spot charters
  • Savings up to £1.5M per
    annum, per operator

Submitted by Chris Coull, Regional Director, Operations 

Commenting in response to the Oil and Gas Authority (OGA) consultation published today on the establishment of a United Kingdom National Data Repository (NDR), which would be funded through the OGA levy, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“We will consult with our members on the increase in levy to cover the cost of a National Data Repository. The digital data store that has been managed by CDA has proven to be an indispensable tool for sharing and transferring information within our sector.  As we move forward, we need to ensure that the creation of the new NDR adds further value to the good work of CDA and all it has achieved over recent decades.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Philips 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.

A safety-conscious apprentice who showed leadership in maintaining safe operations on an offshore platform, and an industry-leading project which championed collaboration were among those who secured accolades last night (Thursday 2 November) at the Oil & Gas UK Awards 2017.

More than 500 people from across the sector gathered to celebrate individual and company achievements at the Aberdeen ceremony hosted by BBC Radio 4 Today presenter Justin Webb and organised by Oil & Gas UK.

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

“Our awards are a great opportunity to celebrate the good news stories and positive developments that continue to happen despite the difficulties many in our industry still face.

“Our judges had a tough job sifting through really great nominations which also serve as another reminder of the dedication of those working in our sector and the faith they have in the future of the North Sea which still holds billions of barrels of oil and gas.”

The evening also included a speech from Shell U.K Limited Vice President of Upstream, Steve Phimister, who reflected on changing times for the industry as it moves to meet the demands of a fast changing world.

The winners across the eight categories are as follows:

Oil & Gas UK Young Professional Award 2017

 

Apprentice of the Year (Sponsored by OPITO)

Samuel Ash, Nexen Petroleum U.K. Limited

 

Graduate of the Year (Sponsored by ECITB)

 

 

 

Joanna Reynolds, BP

 

Oil & Gas UK Mentor of the Year Award 2017

               

Alexandra Mary Fordham, Chevron North Sea Limited.
Oil and Gas Authority MER UK 2017 (Sponsored by Oil and Gas Authority)

 

Apache North Sea Limited


Total E&P UK & OGTC Asset Integrity

Ultimate Gold Award 2017 (Sponsored by the Press & Journal)

 


John Hunter, Tendeka

 

Oil & Gas UK Diversity and Inclusiveness Award 2017     

Atkins

 

Oil & Gas UK Workforce Engagement Award 2017

 

Small and Medium Enterprise (SME)  – Fairfield Energy Limited

 

Large Enterprise  – Proserv

 

Oil & Gas UK Business Innovation Award 2017

 

SME – Operational Excellence (OPEX) Group

 

Large Enterprise – Brent Decommissioning Project, Shell U.K. Limited

 

ENDS

 

Notes to Editors:

About the Awards and Award Winners

 

The Oil & Gas UK Award for Young Professional of the Year 2017 recognise the next generation of talent in the offshore oil and gas industry.

 

Apprentice of the Year 2017 (Sponsored by OPITO), Sam Ash, Apprentice Mechanical Technician, Nexen Petroleum U.K.Limited, earned recognition from his colleagues for his humility, passion and desire to learn. His safety-first approach to tasks, exceptional technical ability and can-do attitude secured his position as a vital team player and one of the Scott platform mechanical team leaders.

 

Jo Reynolds won Graduate of the Year 2017 (Sponsored by ECITB). Since joining BP as a geophysicist two years ago, Jo has made a huge impact on the business and its people. The judges heard how Jo took sole responsibility for the integrated well planning on two high-risk and complex wells on the Quad 204 project. Jo also leads BP’s new regional graduate network, organising over 25 events annually that have raised over £5 million for charity.

 

The Oil & Gas UK Award for Mentor of the Year Award 2017 recognises the vital role mentors play and the extraordinary commitment of these individuals to learning and improvement across the industry.

 

It was awarded to Alexandra Mary Fordham, geologist – Non-Operated Joint Ventures, Chevron North Sea Limited, whose acumen, accessibility and commitment to mentoring has provided Chevron with a strong pool of competent geoscientists. Her skills are not just confined to Chevron employees, having mentored, motivated and inspired more than 1000 school pupils through the ‘STEM in the Pipeline’ educational programme.

 

The Oil and Gas Authority MER UK Award 2017 award those companies whose cooperative approach and positive behaviours have helped to maximise the economic recovery of oil and gas from the UKCS.

The winners on the evening were; Apache North Sea Limited, for its highly economic development of the Callater project in a low oil price environment. The collaborative approach adopted by Apache and Shell U.K Limited saw first oil achieved on the 29th May 2017, five weeks ahead of a very aggressive Field Development Plan, and more than 10% under-budget. Most importantly, the project was delivered with a best in class safety record.

 

Total E&P UK & the Oil and Gas Technology Centre (OGTC) Asset Integrity also received an award for its collaboration and innovation in delivering a series of field trials for new technologies on Total’s Elgin Franklin platform. After factoring in the cost of deployment, it is estimated that between now and 2015 these technologies could deliver an industry net economic benefit estimated in the region of £700 million and will ultimately significantly contribute positively to MER UK.

 

All of the 2017 Press and Journal Gold Award finalists were put forward for the Ultimate Gold Award 2017, recognising outstanding contributions to the UK’s oil and gas sector. The award was won by John Hunter, Advanced Completions Director at Tendeka. The judges praised his internal SPARK Club programme as an “incredible example of pivoting in the downturn towards a positive outcome.” John demonstrated an ability to focus on what was in his remit, champion innovation and empower those around him.

 

The recognition and promotion of the value of diverse teams and inclusive behaviours to drive improved business results within companies is celebrated with the Oil & Gas UK Diversity and Inclusiveness Award 2017.

 

Engineering consultancy Atkins scooped the title due its fresh look at how current and future employees within its Energy (UK & Europe) business could realise the potential of their contribution to Atkins and its clients. Its experiment with a strengths-based rather than a competency-only approach increased inclusiveness within its organisation and successfully attracted more diverse applicants to fill its vacancies.

 

The Oil & Gas UK Workforce Engagement Award 2017 recognises the outstanding steps taken by companies to involve their people, give them a voice in the organisation and develop an empowering culture.

 

Judges were impressed by SME winner Fairfield Energy, which prioritised workforce engagement during its transition from an exploration and production company to a decommissioning operator known as Decom Energy. Working with staff across onshore and offshore sites, Fairfield surveyed and incorporated feedback from the workforce to guide further improvements to the business. This ensured the workforce felt involved as contributors to the company’s future.

 

Technology service company Proserv won Large Enterprise category of this award in recognition of its virtual training and development organisation for its workforce. Proserv Academy encourages, supports and facilitates learning communities within the organisation through webinars and a dedicated online library for employees to share achievements and expertise.

 

The Oil & Gas UK Business Innovation Award 2017 recognises a company which has enabled improved performance through innovation and efficiency initiatives, while using sustainable methods to safely maximise recovery from the UK Continental Shelf.

 

As SME winner, Operational Excellence (OPEX) Group demonstrated its commitment to improving performance through innovation and efficiency as the first company to successfully combine predictive technologies with advanced data analysis techniques. Having pioneered a Predictive Analysis Service, known as X-PAS™, OPEX has helped operators increase production by 2-5% and reduce critical system outages by 50%.

Shell U.K Limited took the Large Enterprise Award for its Brent Decommissioning Project. A hugely complicated project, judges were impressed by the project team’s innovative approach, where their willingness to challenge accepted processes and introduce new engineering solutions delivered exceptional savings.

 

For further information, please contact 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.

 

 

 

Commenting on two major North Sea deals completed within the past 24 hours, Deirdre Michie, chief executive at the industry trade association Oil & Gas UK, said:

“These two deals are hugely significant, and point to strengthening confidence in the future of the UK’s offshore oil and gas industry.

“Chrysaor’s $3.8bn acquisition of Shell assets represents almost 7 per cent of the UK’s total North Sea oil and gas production while Ineos’ $250m takeover of BP’s interests in the Forties Pipeline System represents the transport of up to 40 per cent of our production last year. The deals are of strategic importance to maximising the recovery of the UK’s remaining hydrocarbon resource and the new business opportunities they will open up for the oil and gas supply chain will be very welcome in the current downturn.

“The Forties Pipeline is a critical UKCS asset and its integration with Ineos’ assets at Grangemouth is an efficient solution that will help unlock new investment opportunities upstream. The completion of the deal consolidates INEOS’ position as a top ten company in the North Sea and the largest privately owned exploration and production business operating in the energy basin.

“Chrysaor is now a top independent oil and gas company and one of the UK’s largest producers on an equity basis. The company is intent on exploring and investing in its new portfolio, which underlines confidence in the potential this basin still holds. Up to 20 billion barrels of oil and gas are estimated to remain for recovery, an essential primary resource to meet the country’s energy needs, secure jobs and generate wealth for the economy.

“The future of the basin will thrive on maintaining a diversity of operators producing our oil and gas; we welcome Shell and BP’s continued significant presence here as well as the arrival of new companies to the sector like Chrysaor and Ineos.”

Deirdre Michie adds: “We need more deals like these. In the past they have helped extend the life of the basin, acting as catalysts for fresh investment, reinvigorating activity in both new and existing portfolios.

“While many of the levers are in industry’s hands, the Government can help. Allowing the transfer of tax history along with the sale of assets to their new owners would be one such measure we are discussing with Treasury, and we are hopeful of movement on this in the Budget later this month.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips [email protected] / 01224 577250
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 is saddened to learn of the loss of former Aberdeen MP Frank Doran. Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“We are saddened to learn of the death of the former Aberdeen MP Frank Doran.  With his passing we lose a strong defender of the oil and gas industry and its workers.

“His was a highly influential voice, one that was never shy in challenging the industry, particularly in the wake of the Piper Alpha disaster as Labour’s energy spokesman between 1988-1992 or in his many years of service as treasurer of the All Party Parliamentary Group for oil and gas.  He routinely held the industry’s safety performance to account – and helped strengthen it as a result.

“We send our deepest condolences to his wife, Joan and his family.”

 Ends

 

Problem Statement

Apollo were approached by a floating production, storage and offloading (FPSO) contractor who required an integrated and comprehensive integrity management software solution for oil and gas.

Aims

  • Deliver operational efficiencies through digitising the offshore/on-site workforce.
  • Deliver significantly improved and efficient data management and work flow onshore
  • Improve the operational efficiency and quality of recording data at worksites through application of mobile and wireless technologies.

Method

  • After a number of early successful projects involving the migration of integrity data from legacy and uncontrolled sources Apollo KnowHow™ was created.
  • Apollo KnowHow™ is a modern, scalable, cloud-based data management software solution.
  • It brings significant data management and data quality benefits to engineers and other parties, whilst looking to future developments.

Impact

Apollo KnowHow™ is a step towards digitising the offshore worker and with the addition of optional modular add-ons, KnowHow™ will enable the distribution of electronic work packs, digital harvesting of integrity data along with real time reporting of data to the desktop of senior management, integrity managers and engineers, etc.

The ability of KnowHow™ to present data effectively, involve teams as appropriate, mirror engineering processes, provide work flow, audit trails, link to other systems (visualisation tools, document management systems etc.) ensures rapid close out of anomalies before they become larger problems.

Importantly, the design and architecture of KnowHow™ allows it to manage many sources of data effectively e.g. fabric maintenance work flow, pressure systems, Ex equipment, instrument tubing, trending, risk management etc.

Uniquely KnowHow™ allows operators an instant view of the integrity of their whole asset in real time.

 

Total hours saved 20%

Total savings anticipated £100k -£500k per asset, per annum

Fraser Graham, Business Development Executive

Problem Statement

Excess materials and inventory, HSE issues due to
inventory and the need to hire another property to be
able to service a major contract.

Aim 

To improve the efficiency of the work carried out at the
Aker Solutions Portlethen facility.

Method 

• Map current process and draw out issues preventing the
flow of work through the facility.
• Map future lay out.
• Clear out excess inventory.
• Set-up standardised work areas.
• Reset factory for major contract and for flow
• Install lean tools such as tool shadowing, visual
management and Kanban.

Impact

New process ensured:
• Reduction in motion waste (approx 73% for the most frequent
job type).
• 8.5 tonnes removed – electrical, paperwork, scrap metal.
• £11k retrieved from scrapped items.
• 230m2 space freed-up for potential production bays.
• Potential 70% increase in production with introduction of new
bays.
• Cost avoidance – removing need for additional facility for
Mariner workload: £406K for per year, starting 2017.

The new process resulted in:
• Safer environment with 8.5tonnes of waste removed from site.
• Installed management walk rounds and time to reset and
improve during working day so changes are sustained
• Aker Solutions Portlethen is a more desirable place to work (an
interviewee after a facility tour).
• During a scheduled tour of the facility a customer was
impressed with how “in control” the facility was of production
for their contract.

Total cost avoided: £406k per annum

Contact: Darren Clyde, Senior Lean Coach

Problem Statement 

4,066 days lost due to missed mobilisation dates, caused by:
• Multiple inductions;
• Unnecessary training (hundreds of people going through up to
nine days each);
• Multiple journeys during recruitment process.

Aim

To improve the efficiency of the offshore and site
recruitment process.

Method

• Mapping of the recruitment process & issues identified;
• Root causes of 200 issues and solutions developed;
• Single, new recruitment process created;
• Supporting procedures created;
• Communications plan for roll out to all stakeholders
(300 people).

Impact

New process ensured:
• Removal of multiple inductions
• Removal of multiple medicals, if rehire or currently employed
• Combining medicals with inductions and training
• Removal of travel home, while awaiting Drugs & Alcohol (D&A)
test results (will be part of induction day, 2,3&4 combined)
• Removal of travel for D&A as a separate activity
• Removal of unnecessary training courses
• Removed unnecessary training (therefore travel)

The new process resulted in:
• 92.3% reduction in mobilisation days lost (219);
• Removal of unnecessary training (866 days);
• Value adding work 4306 days given back to the business.

Next steps
• Weekly KPI reporting to ensure improvements are sustained;
• Non-compliance addressed quickly.

Total time saved: 4306 days 

Contact: Darren Clyde, Senior Lean Coach

Commenting on Edinburgh University’s oil and gas study published today, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“There are up to 20 billion barrels of oil and gas resources still to be recovered on the UK Continental Shelf, based on production forecasts provided by the Oil and Gas Authority.

“Production has increased over the last two years and we expect that to continue to rise. Significant new capacity has been added to the UKCS. Nine new fields began production in 2016 and a further seven started producing in the first half of this year – most of which will still be producing in 2030.  A further 12 are due on-stream by the end of next year. Some notably large developments will still be producing towards 2050. Advances in technologies are also presenting fresh opportunities and helping make discoveries commercially viable.

“To ensure the remaining potential of the UKCS is realised, we need to keep operating costs low, bring in new investment and maintain a relentless focus on exploration and enhanced recovery.

“The UK Government forecasts that two thirds of the UK’s energy will come from oil and gas in 2035. We must maximise recovery of our domestic resources so that we can continue to help to meet the UK’s energy needs and safeguard the 300,00 UK jobs our industry supports.”

ENDS

Notes to Editors

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

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

Oil 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

Industry bodies strengthen partnership with new agreement

The leading trade body for the UK’s offshore oil and gas industry, Oil & Gas UK, today signed a Memorandum of Understanding with the Society of Petroleum Engineers’ Aberdeen branch.

The agreement formalises the longstanding relationship between the two industry organisations.

Signatories Oil & Gas UK Chief Executive Deirdre Michie and SPE Aberdeen Chairman Ian Phillips pledged to work together on selected new technology-based events. This will provide an important platform for industry to share case studies, highlighting the value that innovative technology is bringing to the exploration and production lifecycle.

Commenting, Oil & Gas UK chief executive Deirdre Michie said:

“This is good news for the future of our industry and good news for the future generations of engineers who will work in the UK Continental Shelf.

“Oil & Gas UK and SPE Aberdeen have cooperated informally for many years; this MoU reflects our mutual desire to develop a closer relationship with each other.

“With focus continuing to shift towards society’s use of technology, Oil & Gas UK is keen to work with partners including SPE Aberdeen to achieve a more co-ordinated approach and ensure that events are leveraged to the best effect for the UK oil and gas industry.

“Whilst our plans are in their initial stages, our respective members can look forward to reaping the benefits of this partnership, which will include the joint delivery of relevant technical events.”

SPE Aberdeen Chair Ian Phillips said:

“Formalising our long-standing relationship with Oil & Gas UK will enable us to better access the operator case studies that can make our technical conferences much more relevant to our members.

“We envisage collaborating to bring this benefit to our existing events – and to develop new industry-driven technology conferences that can really make a difference”.

ENDS

Notes to Editors:

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

  1. Oil & Gas UK is the leading representative body for the UK North Sea oil and gas industry, acting on behalf of its corporate members across the full spectrum of operators and the supply chain. It hosts over 50 industry-leading events each year.
  2. Formed in 1957, the SPE is the largest individual-member organization serving managers, engineers, scientists and other professionals worldwide in the upstream segment of the oil and gas industry.

    The SPE aims to enable the global oil and gas E&P industry to share technical knowledge needed to meet the world’s energy needs in a safe and environmentally responsible manner.

    The SPE Aberdeen Section is one of the largest Sections across the world, serving over 3000 members, including 450 student members from five student chapters.  Any profits made are invested into supporting the educational and professional development of students and professionals in Scotland; STEM initiatives and scholarships to support students studying oil & gas related qualifications. The Aberdeen Section has won the SPE President’s Award for Excellence for eight consecutive years.

New: Peterson – Promoting collaboration through vessel sharing

Problem Statement

Regardless of oil price, there is a need for service providers to add value to the operators and reduce supply chain costs of which marine are typically 20%.

Through vessel sharing, waste can be removed without any compromise to vessel integrity or service delivered offshore. This waste can often be 20 – 40% of vessel costs.

Aims

To create a sharing pool in Central North Sea, Central Northern North Sea and East Shetland Basin based on the learnings of the
existing pool in the Southern North Sea. A potential new pool is based on what operators want and need.

With an overarching principle of facilitating resource sharing rather than commercial gain to the logistics provider, our service provides transparent and cost- effective vessel schedules that benefit all members.

Method

Create a single pool management function which is facilitated by Peterson for the benefit of all members. It is needed and meets the requirements of all operators regardless of size. Indemnities and planning all agreed together on the basis of members interests and principles.

Impact

Operators have taken a long hard look Internally and challenged many of the existing behaviours which previously fuelled dedicated chartered vessels, namely their ability to plan and forecast requirements.

By being transparent with this planning information and creating an atmosphere of trust and collaboration, Peterson is able, as the facilitator to service their needs and still deal with any unplanned operational challenges they face.

This is achieved with no negative impact to operational service, whilst achieving a positive impact on cost base.

Total CO2 saved

1 x vessel x 365 x 8m3

= MT MGO

= MT CO2

Total savings 4 months
realised

  • Greater flexibility
  • More options to be serviced
  • Less reliance on unutilised
    spot charters
  • Savings up to £1.5M per
    annum, per operator

Submitted by Chris Coull, Regional Director, Operations 

Oil & Gas UK response to the Oil and Gas Authority National Data Repository proposals

Commenting in response to the Oil and Gas Authority (OGA) consultation published today on the establishment of a United Kingdom National Data Repository (NDR), which would be funded through the OGA levy, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“We will consult with our members on the increase in levy to cover the cost of a National Data Repository. The digital data store that has been managed by CDA has proven to be an indispensable tool for sharing and transferring information within our sector.  As we move forward, we need to ensure that the creation of the new NDR adds further value to the good work of CDA and all it has achieved over recent decades.”

ENDS

Notes to Editors

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

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

Oil & Gas UK 2017 award winners announced

A safety-conscious apprentice who showed leadership in maintaining safe operations on an offshore platform, and an industry-leading project which championed collaboration were among those who secured accolades last night (Thursday 2 November) at the Oil & Gas UK Awards 2017.

More than 500 people from across the sector gathered to celebrate individual and company achievements at the Aberdeen ceremony hosted by BBC Radio 4 Today presenter Justin Webb and organised by Oil & Gas UK.

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

“Our awards are a great opportunity to celebrate the good news stories and positive developments that continue to happen despite the difficulties many in our industry still face.

“Our judges had a tough job sifting through really great nominations which also serve as another reminder of the dedication of those working in our sector and the faith they have in the future of the North Sea which still holds billions of barrels of oil and gas.”

The evening also included a speech from Shell U.K Limited Vice President of Upstream, Steve Phimister, who reflected on changing times for the industry as it moves to meet the demands of a fast changing world.

The winners across the eight categories are as follows:

Oil & Gas UK Young Professional Award 2017

 

Apprentice of the Year (Sponsored by OPITO)

Samuel Ash, Nexen Petroleum U.K. Limited

 

Graduate of the Year (Sponsored by ECITB)

 

 

 

Joanna Reynolds, BP

 

Oil & Gas UK Mentor of the Year Award 2017

               

Alexandra Mary Fordham, Chevron North Sea Limited.
Oil and Gas Authority MER UK 2017 (Sponsored by Oil and Gas Authority)

 

Apache North Sea Limited


Total E&P UK & OGTC Asset Integrity

Ultimate Gold Award 2017 (Sponsored by the Press & Journal)

 


John Hunter, Tendeka

 

Oil & Gas UK Diversity and Inclusiveness Award 2017     

Atkins

 

Oil & Gas UK Workforce Engagement Award 2017

 

Small and Medium Enterprise (SME)  – Fairfield Energy Limited

 

Large Enterprise  – Proserv

 

Oil & Gas UK Business Innovation Award 2017

 

SME – Operational Excellence (OPEX) Group

 

Large Enterprise – Brent Decommissioning Project, Shell U.K. Limited

 

ENDS

 

Notes to Editors:

About the Awards and Award Winners

 

The Oil & Gas UK Award for Young Professional of the Year 2017 recognise the next generation of talent in the offshore oil and gas industry.

 

Apprentice of the Year 2017 (Sponsored by OPITO), Sam Ash, Apprentice Mechanical Technician, Nexen Petroleum U.K.Limited, earned recognition from his colleagues for his humility, passion and desire to learn. His safety-first approach to tasks, exceptional technical ability and can-do attitude secured his position as a vital team player and one of the Scott platform mechanical team leaders.

 

Jo Reynolds won Graduate of the Year 2017 (Sponsored by ECITB). Since joining BP as a geophysicist two years ago, Jo has made a huge impact on the business and its people. The judges heard how Jo took sole responsibility for the integrated well planning on two high-risk and complex wells on the Quad 204 project. Jo also leads BP’s new regional graduate network, organising over 25 events annually that have raised over £5 million for charity.

 

The Oil & Gas UK Award for Mentor of the Year Award 2017 recognises the vital role mentors play and the extraordinary commitment of these individuals to learning and improvement across the industry.

 

It was awarded to Alexandra Mary Fordham, geologist – Non-Operated Joint Ventures, Chevron North Sea Limited, whose acumen, accessibility and commitment to mentoring has provided Chevron with a strong pool of competent geoscientists. Her skills are not just confined to Chevron employees, having mentored, motivated and inspired more than 1000 school pupils through the ‘STEM in the Pipeline’ educational programme.

 

The Oil and Gas Authority MER UK Award 2017 award those companies whose cooperative approach and positive behaviours have helped to maximise the economic recovery of oil and gas from the UKCS.

The winners on the evening were; Apache North Sea Limited, for its highly economic development of the Callater project in a low oil price environment. The collaborative approach adopted by Apache and Shell U.K Limited saw first oil achieved on the 29th May 2017, five weeks ahead of a very aggressive Field Development Plan, and more than 10% under-budget. Most importantly, the project was delivered with a best in class safety record.

 

Total E&P UK & the Oil and Gas Technology Centre (OGTC) Asset Integrity also received an award for its collaboration and innovation in delivering a series of field trials for new technologies on Total’s Elgin Franklin platform. After factoring in the cost of deployment, it is estimated that between now and 2015 these technologies could deliver an industry net economic benefit estimated in the region of £700 million and will ultimately significantly contribute positively to MER UK.

 

All of the 2017 Press and Journal Gold Award finalists were put forward for the Ultimate Gold Award 2017, recognising outstanding contributions to the UK’s oil and gas sector. The award was won by John Hunter, Advanced Completions Director at Tendeka. The judges praised his internal SPARK Club programme as an “incredible example of pivoting in the downturn towards a positive outcome.” John demonstrated an ability to focus on what was in his remit, champion innovation and empower those around him.

 

The recognition and promotion of the value of diverse teams and inclusive behaviours to drive improved business results within companies is celebrated with the Oil & Gas UK Diversity and Inclusiveness Award 2017.

 

Engineering consultancy Atkins scooped the title due its fresh look at how current and future employees within its Energy (UK & Europe) business could realise the potential of their contribution to Atkins and its clients. Its experiment with a strengths-based rather than a competency-only approach increased inclusiveness within its organisation and successfully attracted more diverse applicants to fill its vacancies.

 

The Oil & Gas UK Workforce Engagement Award 2017 recognises the outstanding steps taken by companies to involve their people, give them a voice in the organisation and develop an empowering culture.

 

Judges were impressed by SME winner Fairfield Energy, which prioritised workforce engagement during its transition from an exploration and production company to a decommissioning operator known as Decom Energy. Working with staff across onshore and offshore sites, Fairfield surveyed and incorporated feedback from the workforce to guide further improvements to the business. This ensured the workforce felt involved as contributors to the company’s future.

 

Technology service company Proserv won Large Enterprise category of this award in recognition of its virtual training and development organisation for its workforce. Proserv Academy encourages, supports and facilitates learning communities within the organisation through webinars and a dedicated online library for employees to share achievements and expertise.

 

The Oil & Gas UK Business Innovation Award 2017 recognises a company which has enabled improved performance through innovation and efficiency initiatives, while using sustainable methods to safely maximise recovery from the UK Continental Shelf.

 

As SME winner, Operational Excellence (OPEX) Group demonstrated its commitment to improving performance through innovation and efficiency as the first company to successfully combine predictive technologies with advanced data analysis techniques. Having pioneered a Predictive Analysis Service, known as X-PAS™, OPEX has helped operators increase production by 2-5% and reduce critical system outages by 50%.

Shell U.K Limited took the Large Enterprise Award for its Brent Decommissioning Project. A hugely complicated project, judges were impressed by the project team’s innovative approach, where their willingness to challenge accepted processes and introduce new engineering solutions delivered exceptional savings.

 

For further information, please contact 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 welcomes multi-billion-pound North Sea deals

Commenting on two major North Sea deals completed within the past 24 hours, Deirdre Michie, chief executive at the industry trade association Oil & Gas UK, said:

“These two deals are hugely significant, and point to strengthening confidence in the future of the UK’s offshore oil and gas industry.

“Chrysaor’s $3.8bn acquisition of Shell assets represents almost 7 per cent of the UK’s total North Sea oil and gas production while Ineos’ $250m takeover of BP’s interests in the Forties Pipeline System represents the transport of up to 40 per cent of our production last year. The deals are of strategic importance to maximising the recovery of the UK’s remaining hydrocarbon resource and the new business opportunities they will open up for the oil and gas supply chain will be very welcome in the current downturn.

“The Forties Pipeline is a critical UKCS asset and its integration with Ineos’ assets at Grangemouth is an efficient solution that will help unlock new investment opportunities upstream. The completion of the deal consolidates INEOS’ position as a top ten company in the North Sea and the largest privately owned exploration and production business operating in the energy basin.

“Chrysaor is now a top independent oil and gas company and one of the UK’s largest producers on an equity basis. The company is intent on exploring and investing in its new portfolio, which underlines confidence in the potential this basin still holds. Up to 20 billion barrels of oil and gas are estimated to remain for recovery, an essential primary resource to meet the country’s energy needs, secure jobs and generate wealth for the economy.

“The future of the basin will thrive on maintaining a diversity of operators producing our oil and gas; we welcome Shell and BP’s continued significant presence here as well as the arrival of new companies to the sector like Chrysaor and Ineos.”

Deirdre Michie adds: “We need more deals like these. In the past they have helped extend the life of the basin, acting as catalysts for fresh investment, reinvigorating activity in both new and existing portfolios.

“While many of the levers are in industry’s hands, the Government can help. Allowing the transfer of tax history along with the sale of assets to their new owners would be one such measure we are discussing with Treasury, and we are hopeful of movement on this in the Budget later this month.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Phillips [email protected] / 01224 577250
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 pays tribute to Frank Doran

Oil & Gas UK is saddened to learn of the loss of former Aberdeen MP Frank Doran. Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“We are saddened to learn of the death of the former Aberdeen MP Frank Doran.  With his passing we lose a strong defender of the oil and gas industry and its workers.

“His was a highly influential voice, one that was never shy in challenging the industry, particularly in the wake of the Piper Alpha disaster as Labour’s energy spokesman between 1988-1992 or in his many years of service as treasurer of the All Party Parliamentary Group for oil and gas.  He routinely held the industry’s safety performance to account – and helped strengthen it as a result.

“We send our deepest condolences to his wife, Joan and his family.”

 Ends

 

New: Apollo and Oil & Gas Technology Centre partner on data

Problem Statement

Apollo were approached by a floating production, storage and offloading (FPSO) contractor who required an integrated and comprehensive integrity management software solution for oil and gas.

Aims

  • Deliver operational efficiencies through digitising the offshore/on-site workforce.
  • Deliver significantly improved and efficient data management and work flow onshore
  • Improve the operational efficiency and quality of recording data at worksites through application of mobile and wireless technologies.

Method

  • After a number of early successful projects involving the migration of integrity data from legacy and uncontrolled sources Apollo KnowHow™ was created.
  • Apollo KnowHow™ is a modern, scalable, cloud-based data management software solution.
  • It brings significant data management and data quality benefits to engineers and other parties, whilst looking to future developments.

Impact

Apollo KnowHow™ is a step towards digitising the offshore worker and with the addition of optional modular add-ons, KnowHow™ will enable the distribution of electronic work packs, digital harvesting of integrity data along with real time reporting of data to the desktop of senior management, integrity managers and engineers, etc.

The ability of KnowHow™ to present data effectively, involve teams as appropriate, mirror engineering processes, provide work flow, audit trails, link to other systems (visualisation tools, document management systems etc.) ensures rapid close out of anomalies before they become larger problems.

Importantly, the design and architecture of KnowHow™ allows it to manage many sources of data effectively e.g. fabric maintenance work flow, pressure systems, Ex equipment, instrument tubing, trending, risk management etc.

Uniquely KnowHow™ allows operators an instant view of the integrity of their whole asset in real time.

 

Total hours saved 20%

Total savings anticipated £100k -£500k per asset, per annum

Fraser Graham, Business Development Executive

New: Aker Solutions – Kaizen: 5S at Aker Solutions Portlethen Facility

Problem Statement

Excess materials and inventory, HSE issues due to
inventory and the need to hire another property to be
able to service a major contract.

Aim 

To improve the efficiency of the work carried out at the
Aker Solutions Portlethen facility.

Method 

• Map current process and draw out issues preventing the
flow of work through the facility.
• Map future lay out.
• Clear out excess inventory.
• Set-up standardised work areas.
• Reset factory for major contract and for flow
• Install lean tools such as tool shadowing, visual
management and Kanban.

Impact

New process ensured:
• Reduction in motion waste (approx 73% for the most frequent
job type).
• 8.5 tonnes removed – electrical, paperwork, scrap metal.
• £11k retrieved from scrapped items.
• 230m2 space freed-up for potential production bays.
• Potential 70% increase in production with introduction of new
bays.
• Cost avoidance – removing need for additional facility for
Mariner workload: £406K for per year, starting 2017.

The new process resulted in:
• Safer environment with 8.5tonnes of waste removed from site.
• Installed management walk rounds and time to reset and
improve during working day so changes are sustained
• Aker Solutions Portlethen is a more desirable place to work (an
interviewee after a facility tour).
• During a scheduled tour of the facility a customer was
impressed with how “in control” the facility was of production
for their contract.

Total cost avoided: £406k per annum

Contact: Darren Clyde, Senior Lean Coach

New: Aker Solutions – Kaizen: Offshore and Site Recruitment

Problem Statement 

4,066 days lost due to missed mobilisation dates, caused by:
• Multiple inductions;
• Unnecessary training (hundreds of people going through up to
nine days each);
• Multiple journeys during recruitment process.

Aim

To improve the efficiency of the offshore and site
recruitment process.

Method

• Mapping of the recruitment process & issues identified;
• Root causes of 200 issues and solutions developed;
• Single, new recruitment process created;
• Supporting procedures created;
• Communications plan for roll out to all stakeholders
(300 people).

Impact

New process ensured:
• Removal of multiple inductions
• Removal of multiple medicals, if rehire or currently employed
• Combining medicals with inductions and training
• Removal of travel home, while awaiting Drugs & Alcohol (D&A)
test results (will be part of induction day, 2,3&4 combined)
• Removal of travel for D&A as a separate activity
• Removal of unnecessary training courses
• Removed unnecessary training (therefore travel)

The new process resulted in:
• 92.3% reduction in mobilisation days lost (219);
• Removal of unnecessary training (866 days);
• Value adding work 4306 days given back to the business.

Next steps
• Weekly KPI reporting to ensure improvements are sustained;
• Non-compliance addressed quickly.

Total time saved: 4306 days 

Contact: Darren Clyde, Senior Lean Coach

Statement on Edinburgh University oil and gas study

Commenting on Edinburgh University’s oil and gas study published today, Deirdre Michie, Chief Executive of Oil & Gas UK, said:

“There are up to 20 billion barrels of oil and gas resources still to be recovered on the UK Continental Shelf, based on production forecasts provided by the Oil and Gas Authority.

“Production has increased over the last two years and we expect that to continue to rise. Significant new capacity has been added to the UKCS. Nine new fields began production in 2016 and a further seven started producing in the first half of this year – most of which will still be producing in 2030.  A further 12 are due on-stream by the end of next year. Some notably large developments will still be producing towards 2050. Advances in technologies are also presenting fresh opportunities and helping make discoveries commercially viable.

“To ensure the remaining potential of the UKCS is realised, we need to keep operating costs low, bring in new investment and maintain a relentless focus on exploration and enhanced recovery.

“The UK Government forecasts that two thirds of the UK’s energy will come from oil and gas in 2035. We must maximise recovery of our domestic resources so that we can continue to help to meet the UK’s energy needs and safeguard the 300,00 UK jobs our industry supports.”

ENDS

Notes to Editors

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Jennifer Philips 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.

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