An increasing number of energy firms are using shared industry tools developed by Oil & Gas UK and its subsidiary, LOGIC (Leading Oil and Gas Industry Competitiveness), to simplify procedures and improve the efficiency of working and commercial practices on the UK Continental Shelf (UKCS).
More than 900 companies have signed up to the Industry Mutual Hold Harmless (IMHH) deed that LOGIC operates on behalf of the sector to address the contractual gap which traditionally existed between different contractors working offshore.
Demand for LOGIC’s portfolio of standard contracts - which outline general conditions to help participating parties reduce bidding costs, eliminate duplication of effort and increase the efficiency of business processes - has also increased. More than 19,000 downloads have been recorded globally since April 2014, with both purchasers and suppliers benefitting from the contracts.
Ken Cruickshank, LOGIC’s managing director, said in an organization statement:
“With the UK oil and gas sector seeking every opportunity to improve efficiency to maintain competitiveness, the IMHH provides a mechanism for small to medium-sized companies to achieve cost effective risk management by clarifying the allocation of liabilities and costs for key areas of risk covering personnel, property and consequential loss and preventing multiple insurance of identical risks.
“Standard agreements, updated to reflect new regulations and case law, provide all participating companies with terms and conditions to govern their arrangements, rather than developing their own individual contractual arrangements, while also ensuring their respective interests are cost effective and remain adequately protected.
“We welcome the news that a growing number of companies in the sector see the benefits delivered by shared industry tools including those developed by LOGIC, which will help boost the cost effectiveness of UKCS operations. These actions align with pan-industry efficiency initiatives to help improve the international competitiveness of the UKCS, the principles of the supply chain code of practice and government policy to maximize economic recovery from the basin.”
Have a news tip? Share it with Rigzone!
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you