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Oil & Gas UK E Newsletter

Welcome to Oil & Gas UK's October e-newsletter.

Please read on for updates on issues including the publication of the European Commission’s proposals for offshore safety regulation, Oil & Gas UK meetings with Government Ministers and senior officials on the tax regime and news of a members-only event at which the results of Oil & Gas UK’s latest business confidence survey will be revealed.

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Economics, Energy Policy and Gas

Oil & Gas UK meets new Economic Secretary to the Treasury

On 27 October, an Oil & Gas UK team, led by Malcolm Webb and including representatives from CNR, Talisman and Shell, had an introductory meeting with Chloe Smith, MP for Norwich North and the new Economic Secretary to the Treasury (and hence the Minister leading on oil and gas issues for the Treasury). It was a good and constructive engagement with the new Minister, at which she confirmed she was committed to continuing the projects on decommissioning security, field allowances and the new Fiscal Forum established by her predecessor, and importantly, to the same prompt timetable. Arrangements are also in hand for Ms Smith to visit UK offshore installations in the near future.

PILOT meeting

The PILOT meeting on 26 October was chaired by Chris Huhne MP, secretary of state for energy. Charles Hendry MP, the energy minister, David Mundell MP, parliamentary under-secretary of state for Scotland and Fergus Ewing MSP, Scottish energy minister, also attended. The meeting had been preceded the night before with a dinner and discussion on the issue of technology, research and deployment in the UK offshore oil and gas industry which was led by Neil Poxon, managing director of ITF. Following these PILOT engagements, Oil & Gas UK Board members are providing leadership and Oil & Gas UK is providing funding and governance oversight for three projects, entitled:

• Access to capital, led by Steve Jenkins of Nautical Petroleum and Paul Warwick of ConocoPhillips

• Critical infrastructure, led by Jonathan Roger of Centrica

• Increased production, led by Glen Cayley of Shell

In addition, DECC will take a leadership role on the technology issues. PILOT also discussed issues around local content for UKCS projects and the European Commission’s recent proposed safety regulation, both of which are high on Oil & Gas UK’s priority list.

2011 Economic Report published

Oil & Gas UK published its annual Economic Report on 11 October. It is available to download here.

View webcasts of established operators’ perspectives on the future of the UKCS

On 25 October, Oil & Gas UK welcomed more than 400 delegates to its third Aberdeen breakfast briefing of the year. Paul Warwick, president UK and Africa at ConocoPhillips and Trevor Garlick, regional president of BP North Sea, highlighted the achievements of and challenges faced by established operators in the UKCS. You can view the webcasts here.

Briefing on decommissioning tax relief uncertainty in the diary

Oil & Gas UK’s third London breakfast briefing of the year, to be held on 25 November and sponsored by Herbert Smith and The Royal Bank of Scotland, is focusing on the benefits of certainty in decommissioning in an uncertain world. Book your place here.

UK and EU energy policy the focus on next Aberdeen seminar

Oil & Gas UK’s next seminar to be held in Aberdeen on 10 November, sponsored by Aker Solutions, will inform delegates about the energy policy issues prevalent at a national and international level with an emphasis on the oil and gas sector. Attendees will benefit from a review of UK and EU energy policies and the targets that have been set for new sources of energy. The challenges of attracting investment to marginal oil and gas developments in the current economic climate and adapting our national gas and electricity networks to meet the new dynamics of energy supplies will also be covered. Book your place here.

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Employment

2011 Demographics Report published

The 2011 Demographics Report is now available online here. The report shows that in 2010, the average age of the offshore workforce was 41.3 years and that there was a slight drop of 1156 in the number of people who travelled offshore compared with 2009. Analysis of the data over the past five years shows a gradual increase in the number of people below 30 years old travelling offshore and a reduction in those between 30 and 60 years. For more information, please contact Amy Li.

Oil & Gas UK wishes its Awards finalists luck

Oil & Gas UK looks forward to welcoming guests on 3 November to its 2011 Awards, sponsored by Shell U.K. Limited. Each winner will receive an award, pictured on the left. The finalists are listed below.

Overall Excellence

• Abderrahim Doghmi, ACE Petroleum Engineer, BP

• Ann Davies, Well Intervention Engineer (Subsea), BP

• Glyn Waterhouse, Development Engineer, TOTAL E&P UK Ltd

Young Technician of the Year

• Graeme Falconer, NDT Technician/Trainee Specialist NDT, CAN (Offshore) Limited

• John Piper, Instrument Technician, BP Exploration

• Kevin McDonald, Lead Engineer, Flexlife

Mentoring

• Alan Johnson, Principal Petrophysicist, Shell U.K. Limited

• Paul Martin, Platform Trainer, Petrofac

• Steven McGhie, Rotating Equipment & HVAC Technical Authority, TOTAL E&P UK Ltd

People Development

• CAN Offshore Ltd

• Cape

• RBG Limited

Business Efficiency

• KCA DEUTAG Drilling Ltd

• RBG Limited

• Shell U.K. Limited

Immigration Consultation

Following consultation with members, Oil & Gas UK submitted a response to the Migration Advisory Committee consultation on proposals to restrict permanent settlement of Tier 1 and Tier 2 immigrants. The MAC has now published its recommended Shortage Occupation List, which Oil & Gas UK is satisfied reflects the industry’s requirements. The MAC has recently launched another phase of consultation, this time specifically around Tier 2 immigration. Alix Thom will contact members shortly to gauge opinion and establish an industry position.

Working time litigation

In October 2010, the Court of Session ruled that time off work enjoyed by offshore workers more than meets the minimum legal amount of annual leave that employers must provide their employees. However, this decision was appealed by the trade unions and the hearing before the Supreme Court was held on 26-27 October in London. We expect the ruling to be made in 4-6 weeks’ time. For more information, please contact Alix Thom.

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Environment

OSPRAG DVD now available

The UK’s Oil Spill Prevention and Response Group (OSPRAG) presented its final report before 240 delegates at the OSPRAG Summit in Aberdeen on 21 September. A 12 minute programme highlighting the group’s work was also shown, which is now available here. A DVD copy of the programme is being sent to all OSPRAG (including workgroup) participants. If you would like one, please contact Janet Louw.

Are you ready for EU Emissions Trading Scheme phase III?

Oil & Gas UK is briefing delegates on 17 November in Aberdeen on the issues raised by the EU ETS and the forthcoming phase III in particular. Expert speakers from across the industry and government will discuss topics including the practicalities of monitoring and measuring emissions and the potential implications of the Industrial Emissions Directive on the oil and gas industry. The seminar is geared towards those working in operational positions in the industry and will be beneficial to those not normally working in areas such as environmental management. Book your place here.

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Health and Safety

European Commission proposals on offshore safety published

On 27 October, the European Commission published its proposals on offshore safety. Oil & Gas UK had already called a meeting of all its members to brief them on the proposals on the same day and a record note of that meeting will be circulated shortly. Oil & Gas UK responded strongly to voice its opposition to blanket EU regulation on the grounds that UK offshore safety risks being undermined and that the future development of the UKCS could be hampered as a result. A Directive as opposed to regulation was put forward as one alternative action that could be taken to bring member states outside the North Sea up to the high standard achieved in this area. Prior to publication of the proposals, Malcolm Webb had explained Oil & Gas UK’s position at the International Regulators Forum in Stavanger on 4 October - where he spoke alongside representatives of our sister organisation from Norway (OLF) and the Netherlands (NEGEPA) - and at the seventh European Union Fossil Fuels Forum on 25 October in Berlin. For more information, please contact Andrew Bassett.

Weather data network going live on 1 November

A website enabling operators to share weather data and improve the accuracy of the offshore weather observations given to helicopter operators is going live on 1 November. The network ensures that the industry fully complies with recommendations in the Civil Aviation Publication (CAP) 437 regarding the use of local ‘hub station’ data for sites which are not equipped with cloud and visibility sensors. For more information, please contact Robert Paterson.

Coastguard restructuring consultation

Oil & Gas UK submitted a response to revised proposals for restructuring of the Coastguard Service. Main areas of concern addressed in the response relate to potential reduction in staff numbers in the Aberdeen centre and closure of the Liverpool centre with impact on East Irish Sea operations. Copies can be obtained by contacting Bob Lauder.

HSE proposals on assurance arrangements for TEMPSC and emergency response training

Oil & Gas UK has formally responded to HSE proposals on assurance arrangements for Totally Enclosed Motor Propelled Survival Craft (TEMPSC) and training for offshore emergencies. The prime challenge to HSE is around the proposed reintroduction of periodic launching to sea of TEMPSC. In-situ testing has been in place for many years now as a result of safety concerns relating to launch and recovery of TEMPSC for testing purposes. Copies can be obtained by contacting Bob Lauder.

Asset Ageing and Life Extension seminar

This year’s safety seminar, to be held on 1 December in Aberdeen, will provide an insight into efforts being made to develop a consistent and effective approach to asset ageing and life extension. Book your place here.

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LOGIC

Master Deed online heading for January 2012 launch

The online version of Master Deed will be launched in January 2012. Oil & Gas UK members have already been sent a note explaining the process for execution and the new system will be introduced at a seminar early in the new year. For further information, please contact logic@oilandgasuk.co.uk.

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Operations

Offshore Decommissioning Conference 2011

The Offshore Decommissioning Conference 2011 held at the beginning of October attracted a record 240 delegates. You can view the presentations here.

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Supply Chain

Over 1,000 people expected at PILOT Share Fair

This year’s PILOT Share Fair, sponsored by CAN, is being held in Aberdeen on 2 November. Major companies will present details of upcoming work to a host of small and medium-sized supply chain contractors. You can still book your place here.

Members invited to hear about latest Business Confidence Survey

On 15 November, Oil & Gas UK is holding a members-only networking breakfast in Aberdeen. The event will focus on activity with the results of the third quarter Business Confidence Index survey being presented and attendees will also hear the perspectives of an operator and contractor member. If you would like to request a place, please email Elizabeth Singer here.

Work of Well Life Cycle Practices Forum progressing

Each of the six WLCPF workgroups is in the process of developing guidance relating to well life cycle practices by early 2012. Two of these documents, Guidelines for well operators on well examination and Guidelines for well operators on competency of well examiners, have now been approved by the Board of Oil & Gas UK for publication. These guidelines will be made available to members in the usual way, either free for Forum members to download from the extranet or to purchase at a discounted rate on a CD from Oil & Gas UK’s website. For more information, please contact Theo Tucker.

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Membership

We are pleased to welcome the following companies who have joined Oil & Gas UK since the last e-newsletter, taking the membership to 176: Blackhawk Offshore Ltd., CMS Cameron McKenna LLP, Cogna Ltd., Deloitte LLP, Fugro Holdings Ltd., Lokring Northern UK, Offshore Installation Services Ltd., Muir Matheson, NHV (Noordzee Helikopters Vlaanderen), Nuffield Health and Weber Shandwick. Stephen Marcos Jones, Oil & Gas UK’s membership manager, is committed to ensuring that Oil & Gas UK membership is carefully tailored to members’ needs so please contact him with any queries.

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Spin to cure diabetes!

The UK oil and gas industry is being asked by Juvenile Diabetes Research Foundation (JDRF) to support their 'Oil Spin to Cure Diabetes' fundraising event which will take place throughout November 2011. The competition gives teams the chance to compete in an exciting charity static cycle ride, which will push performance to the limit. The challenge can be done at any time during the month to suit your team, which allows both onshore and offshore participation and encourages the spirit of competition between locations. More details about the event are available here.

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