New study calls for more partnering on UKCS

The study showed that 74 per cent of those surveyed said collaboration was a key part of their day-to-day business. Picture: PA
The study showed that 74 per cent of those surveyed said collaboration was a key part of their day-to-day business. Picture: PA
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Action needs to be taken quickly to boost supply-chain collaboration in the oil and gas industry and enable companies to get the maximum value from the UK Continental Shelf (UKCS), a study has found.

According to Deloitte, only 27 per cent of those surveyed said most of their efforts to collaborate had resulted in success, although 74 per cent said collaboration was a key part of their day-to-day business.

Meanwhile, 90 per cent said supply-chain collaboration would result in their company being more successful.

The study comes amid falling oil prices and high costs for the industry. Deloitte director Nick Clark said: “While it’s encouraging that collaboration is seen by the industry as an important tool in helping companies succeed in maximising economic recovery of the UKCS in line with the Wood Report, there’s clearly work to be done, and fast, given the current tough environment.”

He said barriers that needed to be tackled included things such as a lack of effective financial incentives and clear communication, as well as “misalignment of expectations between operators and service companies in execution”.

The survey of oil and gas operators and oilfield services companies also highlighted that less than 10 per cent said leadership regularly stressed the importance of collaboration or made it part of their business strategy, despite management support in theory for collaboration.

Deloitte suggested that industry must take the lead in working together effectively, but said it should also seek support from regulator the Oil and Gas Authority and trade body Oil and Gas UK (OGUK).

Stephen Marcos Jones, OGUK’s business development director, said it was “vital” for the industry to work together proactively.