Current market conditions are making oil and gas operators understandably cautious about embarking on mega projects. When they do invest, shorter term payback options such as brownfield developments are generally favoured over longer-term, large-budget greenfield projects.
The North Sea oil industry has been in transition for some years following the collapse of oil prices in late 2014. Large cost reductions have been painfully achieved. Production has increased due to a combination of new fields coming on stream plus a substantial increase in production efficiency to around 75%. But new field investment expenditure has fallen dramatically since 2015 and exploration remains at a relatively low level reflecting principally the maturity of the province as well as oil and gas prices far below their pre-2015 levels.
An innovative North Sea equipment sharing scheme devised to save companies time and money on ordering new gear could be revived next year.
UK offshore oil and gas companies have taken a small backward step in their efforts to work together more effectively, a key survey suggests.
Later this month OGUK and Deloitte will co-host the launch of the 2019 UKCS Supply Chain Collaboration Survey: “From strategy to action –overcoming barriers to change.”
Collaboration is still proving “difficult” for many North Sea supply chain companies, according to a new survey.
Faced with a tough downturn, the oil and gas industry has been working harder than ever to find smarter ways to do business.
Over the past few years, the oil and gas sector has been faced with the severe challenges of a prolonged industry downturn. This has had a profound impact on our sector, changing the way both asset operators and the supply chain approach new project developments, especially in key areas such as the North Sea.
Hard lessons learned but not retained? Jeremy Cresswell looks at a twelve-year old report which shows how little the sector’s attitudes and culture have changed and how nearly identical the identified solutions are, regardless of which major oil price crisis one considers. Corporate memory is very short.
New analysis suggests the North Sea collaboration is on the rise.
Aker Solutions and ABB are joining together to develop new technical solutions for the oil and gas industry, but people shouldn't take that to mean there's a merger on the cards.
Collaboration: what does it mean to you?
Petrofac has teamed up with Faroe Petroleum and Eni Hewett to establish a cost saving partnership across their UK operations in the Southern North Sea. The tripartite agreement is aimed at driving efficiencies and commercial synergies. Petrofac will share logistics across the Schooner, Hewett and Ketch gas fields to share logistics and accommodation services across the facilities.
During the current difficult period faced by the UKCS oil and gas industry, collaboration between the various parties in the offshore industry has been identified as one of the key factors in ensuring that the oil and gas output from the UKCS is maximised. There has been recent discussion in Energy Voice about some of the ways in which this can be done – and some of the problems being encountered, including the publication of some very interesting survey results published by Deloitte. Looking at these things in terms of their legal and contractual dimensions, there might be lessons to take from the way that the (onshore) construction and engineering sector has dealt with these issues in the last decade or so. In that area, particular forms of standard form contracts and the use of “good faith” obligations have been at the centre of trying to ensure collaborative working – with some success.