Page 12: of Offshore Engineer Magazine (Sep/Oct 2015)

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Opinion

Thought Thought ThoughtStream

Andy Samuel, Chief Executive, Oil and Gas Authority us new regulatory powers, including the ability for us to participate in

A new era meetings with operators, have access he sharp decline in oil prices over create a more competitive cost base and to data, provide dispute resolution and

T the past year has magni? ed the increases ef? ciency.

introduce a range of sanctions, such challenges that companies on the UK With signi? cantly fewer new wells as improvement notices and ? nes up

Continental Shelf (UKCS) have been planned in 2015, revitalizing exploration to $1.56 million (£1 million). I don’t grappling with for many years; increas- is another key priority. We are moving expect to have to use these sanctions ing costs, falling exploration and aging ahead with a $31.2 million (£20 million) often; my preference is to work infrastructure, coupled with commercial government-funded seismic project, closely with industry to encourage and legal complexity. which will acquire new high-quality 2D collaboration and facilitate action.

Sir Ian Wood’s UKCS Maximising data from the Rockall and Mid-North Sea

Having already appointed a high-

Recovery Review concluded that High. Operations began mid-July, with caliber leadership team, we will increased stewardship and more col- three vessels in the ? eld acquiring data continue to develop the organization laboration were essential for the industry, over 220,000sq km. in the coming months, increasing giving rise to the swift creation of the Oil our capability but remaining cost- and Gas Authority (OGA).

conscious. I’ve set an overall headcount

Given the challenging backdrop for cap of 179 employees in order to avoid our industry, now, more than ever, is the ‘mission creep’ and the latest wave of “The OGA will be a time to create a future of collaboration recruitment activity took place this

We have a real opportunity to iden- summer. catalyst for change but tify and remove behavioral barriers, set

Making the tripartite approach clearer expectations between organiza- integral to how we work across the we don’t have all the tions involved in the North Sea, learn

UKCS is the key ingredient in creat- from positive examples and secure ing a positive future for our oil and gas leadership commitment to sustainable industry, and I very much welcome the answers. We all need to cultural change.

continued commitment of industry and

One of our ? rst actions was the Call to government.

lead the change. We all

Action Report, published February 2015, Maintaining a strong and constructive which identi? ed two immediate risks relationship with HM Treasury is critical. need to help secure the resulting from the fall in oil price. Alongside this, Oil and Gas UK and OGA

First, the risk of declining pro? tabil- are already working together effectively best possible future for ity in producing ? elds leading to the in a number of areas and I’m keen to premature decommissioning of critical build on this.

The OGA will be a catalyst for infrastructure. This has the potential our industry.” change but we don’t have all the to shut down whole areas of the UKCS, answers. We all need to lead the stranding valuable resources. To help change. We all need to help secure the avoid this, the OGA is working with best possible future for our industry. infrastructure owners and partners to At the same time we’ve moved quickly

We all need to turn commitment into help ? nd solutions in often challenging to establish the OGA. It became an execu- action. commercial situations. tive agency of the Department of Energy

Second, the risk that a lack of Climate Change (DECC) on 1 April 2015 con? dence could result in the failure and is on track to become a government Andy Samuel, formerly of BG Group, to secure critical long-term investment company by summer 2016, subject to the began his role as chief executive of the in the basin. The US$2 billion (£1.3 will of Parliament. UK’s newly formed Oil and Gas Authority

The OGA has operational billion) package of measures announced (OGA) on 1 January this year. The OGA, independence from DECC. The OGA’s in the 2015 Budget provided a welcome formed based on the recommendations of role is to regulate, in? uence and boost to the industry and was well the Wood Review, was of? cially launched promote the UK oil and gas industry received by investors. in April to instigate a new era of the in order to maximize economic

Alongside this it is now essential mature North Sea focusing on maximiz- recovery. The energy bill will give that the industry redoubles its efforts to ing recovery.

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