N. Sea regulator launches new company-specific 2018 production and decommissioning work plans for oil and gas operators

Bill Cattanach
Bill Cattanach: ‘MER collaboration’

The Oil and Gas Authority is introducing new company-specific annual work ‘performance targets’ to ensure N. Sea oil and gas operators work appropriately – ie ‘collaborate’ – with the supply chain to maximise economic recovery from the ageing basin.

From 1 Jan 2018, the Aberdeen-based regulator launches its Supply Chain Action Plans in which whereby operators will be required to develop effective action plans in respect of all new projects valued at more than £25 million, including decommissioning activities.

In effect, this is akin to annual agreed employer-employee ‘agreed work plan’ / annual performance review meeting, at which job performance is tested as being satisfactory – or not.

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

At the end of the year,’ feedback’ will be sought from industry <on performance and progress so far> and the process refined as necessary.

The purpose of SCAPs is to assist operators in demonstrating their contract strategies and concepts are comprehensive and well-positioned to deliver ‘best value’ in accordance with their Field Development Plan or Decommissioning Programme.

Bill Cattanach, Head of Supply Chain at the OGA, explained: “Revitalising exploration and maximising N. Sea economy recovery (MER) depends on having a competitive and competent supply chain, which can operate efficiently and innovatively to deliver the services and technologies required to unlock the full potential of the basin.

“So 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 SCAPs have been structured for the offshore environment and the process has been piloted by three companies, based on real projects. The pilots highlighted that early collaboration with the supply chain can significantly reduce costs through process efficiencies, reduced administration and by utilising alternative methods.

Leading the way towards MER collaboration; the Scottish Energy News and Aberdeen University path-finding conference, Apr 2016
Leading the way towards MER collaboration; the Scottish Energy News and Aberdeen University path-finding conference, Apr 2016

20 Dec 2017

 

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed