OGA announces new North Sea supply chain ‘action plan’

The IOGP argues the industry could benefit from consistent regulation from region to region
The Royal Dutch Shell Plc Olympus tension leg platform (TLP) is seen at dawn as it sets sail from Kiewit Offshore Services in Ingleside, Texas, U.S. Photographer: Eddie Seal/Bloomberg

The Oil and Gas Authority (OGA) has confirmed it has formalised a relationship with operators on supply chain matters for 2018.

The OGA will introduce measures to ensure that operators work appropriately within the supply chain in order to derive optimum value.

The Supply Chain Action Plans (SCAPs) will be initiated as of January 2018 and will expect operators to develop their own action plans when developing projects exceeding £25million, including decommissioning projects.

It is hoped that the SCAPs will assist operators to formulate comprehensive contract strategies to derive the best value in accordance with the Field Development Plan (FDP) or Decommissioning Programme (DP).

The SCAPs concept has been utilised in other sectors and has proved successful in driving value and collaboration within new projects.

The new SCAPs introduced by the OGA have been structured for the offshore oil and gas sector and will aim to show that early collaboration with supply chain companies can significant reduce costs.

Bill Cattanach, head of supply chain at the OGA said: “Supply Chain Action Plans provide a golden opportunity to drive behavioural change and promote a culture of active engagement between operators and the service sector, where it is accepted many of the solutions to enable MER UK exist.”

The OGA is to welcome SCAP submissions from January 2018 and expects that they will be included in all FDPs and DPs from 1 April 2018. At the end of the first year, feedback will be sought from industry and the process refined as necessary.

Guidance, entitled ‘Supply Chain Action Plan Guidance’, is now available to help operators to structure and submit their plans.