UK offshore industry embracing collaboration, survey suggests

The UK’s offshore oil and gas industry is enacting the Wood Review’s recommendations, according to a sector survey published by Deloitte and Oil & Gas UK.

Offshore staff

ABERDEEN, UK– The UK’s offshore oil and gas industry is enacting the Wood Review’s recommendations, according to a sector survey published by Deloitte and Oil & Gas UK.

The review identifiedcollaboration as fundamental for sustaining the future of E&P across the UK continental shelf (UKCS).

The 2017 UKCS Upstream Supply Chain Collaboration Survey canvassed the views of more than 150 operators and suppliers across the sector. Among its findings were:

  • 95% of operators and suppliers said collaboration was now an integral part of their day-to-day business (compared with 86% in 2016 and 74% in 2015)
  • 43% considered their collaborative engagements successful in 2017, up from 27% in 2015.

Oil & Gas UK’s Continuous Improvement Manager Dr Mariesha Jaffray said: “The results demonstrate that for most operators and suppliers, collaboration is shifting from being an aspiration to a reality…

“Through collaboration companies are able to reduce costs, share knowledge, and maximize the economic recovery from the basin. We can speak with tentative confidence that these behaviours are the new normal.

“Provided these results are built upon, we have every reason to believe that the UKCS will become the most attractive mature basin in world with which to do business.”

Graham Hollis, senior partner for Deloitte in Aberdeen, said: “In this year’s results, we are starting to see real progress in terms of improved behaviors leading to more successful collaboration outcomes in the UKCS…

“Cost reduction is still the main driver of collaboration, but the focus is shifting from transferring risk to sharing knowledge, new ideas, and solutions. The results suggest more openness towards business partners and that more companies are taking a closer look at how they can incentivise collaboration better financially. Engaging suppliers earlier in the project lifecycle is also becoming more widespread…

“Companies now need to accelerate the transformation and embed these new ways of working to ensure their future high performance, regardless of oil price.”

12/05/2017

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