WIDE-ranging changes are needed in all sectors of the offshore oil and
gas industry to secure the future of North Sea developments, according
to a working party report on the competitiveness of the UK Continental
Shelf.
The essence of the conclusions of the report, published yesterday by
the Department of Trade and Industry, is that a profound change of
culture is necessary for all parties involved in the offshore industry
if costs are to be controlled.
The report says this will call for a change of approach from oil
companies, contractors, suppliers, and the Government.
The working group was set up after a conference in Aberdeen in October
to consider the implications for the offshore industry if costs were not
reduced.
Since then representatives from the oil industry, the offshore
supplies industry, the Scottish Trades Union Congress, and the DTI have
been meeting under the chairmanship of Mr John d'Ancona, director
general of the Offshore Supplies Office.
The group, which invited evidence from 33 companies and organisations
related to the offshore industry, says the practices of the past evolved
in times of large projects and generally rising oil prices and at a time
when much had to be learned about the complexities of managing major
projects in a harsh offshore environment.
''The challenge for both the Government and the industry now is to
adapt the available skills and expertise to suit changed market
conditions,'' says the report. ''Change on the scale that is needed will
require the development of a high degree of trust and confidence between
all parties and their perceptions of each other's roles must also
change.
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