UK Offshore Sees Better Collaboration: Report
Better collaboration within the offshore oil and gas industry is key to maximising the potential of the supply chain and the results are bearing fruit, lobby group Oil & Gas UK (OGUK) said January 28.
And it could unlock future activity in the UK Continental Shelf and deliver a successful net-zero carbon future, it said, as it launched its latest annual Collaboration Report jointly with consultancy Deloitte.
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Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, the report found.
Collaboration success rates hit a record high in 2020 with more than half the survey respondents saying over half of their efforts were successful. In what also marked a first in the survey's six-year history, the overall proportion of 'successful' efforts was higher than 'unsuccessful' ones.
However, respondents said the pandemic and consequent economic downturn also led to disadvantageous commercial behaviours such as cancelled or modified contracts.
OGUK said: "OGUK has been encouraging industry to do business in a sustainable way to protect the supply chain. This includes finding innovative ways of working that deliver value for both sides, ensuring that industry has the skills and resources needed when activity rebounds, as well as using the Supply Chain Principles as a mechanism to improve behaviours."
Deloitte said: "In what is an extremely challenging environment, the industry must assess new opportunities and challenges as it addresses the year ahead. Organisations need to reimagine their businesses and models and focus on the right set of collaborative behaviours because as the report highlights, working closely with suppliers and customers to support one another will be vital."
Upstream regulator Oil & Gas Authority said: "There are encouraging signals, as shown in the report, that the industry is leaving old approaches behind and embracing the expertise which exists within the supply chain in a collaborative manner. However, there is still room for improvement, and collaboration should remain a key focus for industry going forward."