Most UKCS Operators Paying Invoices Promptly
Most UK Continental Shelf (UKCS) operators are paying invoices promptly, the North Sea Transition Authority (NSTA) has highlighted.
According to a new report from the organization, UKCS operators paid 71 percent of the 475,000 invoices received last year within 30 days, while 98 percent were paid without dispute. In a statement posted on its website, the NSTA noted that, with 29 percent of invoices taking more than 30 days to process, there is room for improvement on payment speed but added that it is encouraging that most are processed without disagreement.
The new NSTA report also indicated a “bright outlook” for the supply chain, with at least $6.2 billion (GBP 5 billion) of contracts either being tendered now or in the very near future, the NSTA pointed out.
The report noted that a strong and competitive supply chain has been fundamental to the success of the UK oil and gas industry over the last 50 years and stated that well-established relationships between operators and suppliers enable the offshore sector to continue to deliver value through the most challenging times this industry has faced since first oil was produced in the 1960s.
“This new report should give suppliers cause for optimism, with billions of pounds of investment coming their way in the next few years,” Stuart Payne, Director of Supply Chain, Decommissioning and HR at the NSTA, said in an organization statement.
“Encouragingly, it also highlighted fantastic examples of operators and service companies working in collaborative and innovative ways to get projects off the ground,” he added.
“However, industry can still improve in some key areas, such as turnaround times for payments. The NSTA will continue to use its regulatory powers, suite of tools and influence to add value and maintain a strong supply chain. This all matters because a thriving and well supported supply chain is vital for the UK to meet our energy security and energy transition needs,” Payne continued.
The NSTA regulates and influences the oil, gas and carbon storage industries, according to its website, which notes that the organization helps drive the North Sea energy transition. Earlier this month, the NSTA published its latest corporate plan, outlining the priority activities it will focus on over the five year period 2022-2027. The NSTA’s previous plan was produced in 2019 and, since then, it has revised its strategy to fully incorporate net zero into its work, alongside optimizing domestic production of oil and gas in the interest of energy security. The organization also changed its name from the Oil and Gas Authority.
To contact the author, email firstname.lastname@example.org
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.