Report: North Sea Operator, Supply Chain Collaboration Increasing

Collaboration between operator companies in the North Sea oil and gas industry and the wider supply chain is increasing, according to a report by Oil & Gas UK and Deloitte.

The survey found that on a scale of 1 to 10, the Operator Collaboration Index (CI) score moved from 5.9 to 6.7 between summer of 2015 and March 2016, strongly suggesting that operators are becoming more collaborative with the wider supply chain.

Detailed analysis suggests that operators are becoming more open and are engaging the supply chain earlier in projects and are more likely to be proactive in seeking out new ideas and solutions from suppliers. The new insight also reveals that smaller companies, those employing less than 2,500 people, appear to be more positive about collaborating with operators than those from larger companies, ie those employing more than 10,000 people.

“Our members are telling us that it’s vital the offshore industry pulls together to face what is a challenging time the sector,” said Oil & Gas UK’s Director of Business Excellence, Stephen Marcos Jones.

“We’ve seen examples of how increased collaboration has been successful in the aerospace and automotive industries, so we’re pleased to see green shoots of success from the offshore oil and gas industry. It’s essential now we work to nurture greater cooperation so will be asking those operators who scored particularly highly to work with us on sharing examples of good practice,” he added.

“The first phase of our joint project with Oil & Gas UK has yielded a very robust initial dataset and early insight into the quality of supply chain collaboration in the UKCS. Our confidential benchmark analysis helps companies understand how they perform compared with their peers, what they do well and what they can do better,” said Geoff Gibbons, a partner at Deloitte.

Oil & Gas UK’s Efficiency Task Force (ETF) launched the Industry Behaviours Charter at the end of 2015 to encourage companies in the offshore industry to make a collective commitment to work effectively, efficiently and co-operatively.

In total almost 400 individual pieces of feedback were received, which equates to more than 20 pieces of feedback from the supply chain for each of the major operators in the UK Continental Shelf.

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