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Northwest Europe together. Some 70 people attended and ongoing. It is planning a campaign pro- will focus on a number of areas, such as generated hundreds of ideas. Centrica is moting industry collaboration. “Where valves standardization, having standard now helping EnQuest run a hackathon aerospace and automotive industries subsea modules to put in place and with its suppliers. Centrica also has a made their breakthrough was when they replicate, and in wells plugging and “save $100 million in 100 days” cam- came together to cooperate,” Michie abandonment having a standardized paign internally. says. Oil & Gas UK is also running proj- approach to improve the effciency of

One of the questions the industry has ect to benchmark contractor rates and it P&A operations. Oil & Gas UK already to ask itself is how it became so ineff- is looking at how spares utilization can recently released new guidelines cient and unsustainable. It’s a combina- be used through cooperation. This year, around well abandonment, includ- tion of things, Michie says. “We had a Oil & Gas UK released guidelines to ing cost estimation guidelines to help hot market with the high oil price driving both reduce and optimize the number of improve estimate accuracy.

certain behaviors. It is also a mature shutdowns and turnarounds. For cultural behaviors, there is basin and things are more complicated A group driven by Oil & Gas UK has an alignment needed, Michie says. and more challenging than a greenfeld also been set up to focus on business “Moving from competition to coopera- site,” she says. “The combination of process, standardization and behaviors tion is a challenge – it is a competitive these factors drives behaviors and we and cultures. “It is about moving forward industry. We have a supply chain code have woken up to the fact that this is with early adopters and if we can demon- of conduct, which needs updating with take out costs relatively overnight, and not a sustainable way to go about. Even strate a couple of companies can so this an ‘effciency head’ on, rather than a we have seen that. Where we are seeing with a high oil price, it would still be you will get everyone coming with you,” process head. It’s also about shared KPIs more and more sustainable changes com- ineffcient. Michie says. (key performance indicators),” she says. ing through is on effciency.” “Whatever happens, we need a Business processes will focus on the Sharing effciency measures will also be

In this area, Oil & Gas UK is building more sustainable effcient model,” she inventory management piece, i.e. spares a key theme at the next Pilot Share Fair. a “box of stories,” or good examples, continues. “It’s all about optimizing the utilization. “Inventory is sitting around But, it’s also all about how people to share with the engineering, rather than what a commer- and no one has any idea it’s there. ask questions and what questions are industry. For exam- cial barrel is. The industry is very good Improving management of this means asked. If operators ask the supply chain ple, Nexen studied at engineering, but it is about applying an having the right spares at the right time the right questions, giving them scope to the Tour de France innovative approach to standardization and reducing wrench time,” Michie deliver solutions, rather than just asking winning Sky Team’s and thinking about that.” says. them to take out costs, it would be a marginal improve-

Oil & Gas UK has a tranche of projects Standardization and simplifcation good start. ments ethos. The

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