A new ‘Collaboration Charter’ to help N. Sea operators to maximise economic recovery (MER) has been drawn up by Oil and Gas UK, the trade association.
The government’s forthcoming Energy Act will make MER collaboration compulsory for operating companies holding N. Sea oil and gas exploration licences.
The Industry Behaviours Charter is a collective commitment to work effectively, efficiently and co-operatively in order to achieve ‘transformational change’ for the offshore oil and gas industry. Unlike the MER Collaboration Clause in the Energy Bill, this charter is voluntary-only.
MER Collaboration to become a legal requirement for N. Sea industry in new Energy Act
Deirdre Michie, Chief Executive, Oil & Gas UK, commented: “Improving the performance of this industry will only come about through real collaboration between operators, major contractors and SMEs, embedding new ways of working and creating new business models.
“The Efficiency Task Force aims to support that shift and the Industry Behaviours Charter will be one of its principal mechanisms.
“We need the rest of industry to get fully behind it, taking the principles and incorporating them within their own organisations to help deliver a safe, competitive and enduring future for our sector.”
The Industry Behaviours Charter was signed by Deirdre Michie alongside Oil & Gas UK co-chairmen, Trevor Garlick of BP and John Pearson of Amec Foster Wheeler, who leads the ETF. By signing, they agreed on behalf of their companies to:
- Be an early adopter of efficiency initiatives and new technology, sharing learnings with others
- Provide access to decision makers through a specific, fast access point, in order to escalate issues
- Strengthen industry co-operation through continual improvement in and support for, industry codes of practice, forums and standards
- Contribute to performance improvement by ensuring transparent and time-bound legal, commercial and contractual engagements
- Commit to continuous improvement through regular review of the delivery of this Charter, across all levels of my business.
Sir Ian Wood, (left) whose review of the industry recommended greater co-ordination of activities and collaboration, said: “There is absolutely no doubt that the drive to industry collaboration and greater efficiency needs an Industry Behaviours Charter and it’s great that the Efficiency Task Force has now brought this out.
“Achieving the essential collaboration requires a change in behaviours both between operators and also with the supply chain.
If the industry really takes this to heart, and I believe they will, then it will be a big step ahead.”
Andy Samuel, OGA chief executive, commented: “Cultural change and greater collaboration is needed, more than ever, to reinvigorate the N. Sea basin and drive simplicity and efficiency. It is great to see industry making this commitment.
“It is particularly good to hear companies offering to hold each other to account and sustain a new way of working and the OGA will happily support this change. The UK Continental Shelf (UKCS) has very significant remaining potential and this is a good step towards maximising economic recovery.”
Getting MER from the UK North Sea: The 2016 Oil & Gas Collaboration Conference, Aberdeen
The MER Strategy:
The deadline for responding to the consultation is 11.45am on 8 January 2016:
Email to: firstname.lastname@example.org
MER UK Strategy Consultation
William Cutler, Area 4C
3 Whitehall Place