Energy Firms Team Up to Cut North Sea Costs
Petrofac, Faroe Petroleum and Eni Hewett have established a cost saving partnership to drive efficiencies and commercial synergies across their UK operations in the Southern North Sea.
The agreement will see collaboration between Petrofac and the respective equity owners and operators of the Hewett, Schooner and Ketch gas fields, with logistics and accommodation services across the facilities being shared. Faroe Petroleum is the operator and 60 percent equity holder in the Schooner and Ketch fields, and Eni Hewett is the operator and 89 percent equity holder in the Hewett complex.
As an example of one of the collaboration measures, Faroe Petroleum will share the usage of its Augusta Westland 139 helicopter with Eni Hewett. In exchange, offshore personnel contracted to the normally unmanned Schooner and Ketch assets will stay nearby on the Eni Hewett complex rather than returning to shore each day, cutting down travel time and ensuring cost efficient mobilization of personnel. Petrofac will also be able to mobilize its workforce, as required, across both operations. The partnership is expected to deliver significant cost reductions.
Graham Stewart, chief executive of Faroe Petroleum, commented in a company statement:
“Since taking over operatorship of Schooner and Ketch last year, we have focused on a number of measures across the supply chain designed to improve operational efficiency without compromising safety which we feel is especially relevant in this new era of low commodity prices. This arrangement is one such innovative measure, which entails the sharing of key services which will materially reduce offshore operating expenditure, and improve operational efficiency.”
Walter Thain, managing director of Petrofac offshore projects and operations, said in a company statement:
“To deliver the greatest value for our customers we always place a strong emphasis on cost management. The challenges we currently face as an industry are unprecedented and require us to constantly think differently and be innovative in the approach we take commercially to operations and engaging our supply chain. Reducing the cost of operations in the UKCS is a collective industry responsibility and we are absolutely committed to playing our part. By delivering cost reductions and synergies safely we benefit our customers and support a broader step change in the culture of the UK oil and gas industry.”
Deirdre Michie, Oil & Gas UK’s chief executive, commented in an organization statement:
“Oil & Gas UK welcomes the agreement between Petrofac, Faroe Petroleum and Eni Hewett to share resources as it is a great example of co-operation in action. If we're to fulfil Sir Ian Wood's vision to maximize economic recovery from the UK Continental Shelf, co-operation is crucial in restoring competitiveness. We are now hearing examples up and down the country of companies finding ways to work together in order to revitalise the UKCS.
“To build on the work of individual companies, Oil & Gas UK has put in place the Efficiency Task Force to provide the catalyst for pan-industry improvement – in processes, standardization and behaviours - so that the UK oil and gas industry can continue to attract investment and support hundreds of thousands of high skilled jobs for decades to come.”
WHAT DO YOU THINK?
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.
- Faroe Fights DNO Offer With Valuation Report (Jan 02)
- DNO Withdraws Request For Faroe Board Seats As Conflict Escalates (Aug 27)
- Independents Go Big in North Sea (Jan 03)
Company: Petrofac more info
- Iraq And Petrofac Sign $369MM Deal To Build Majnoon Crude-Processing Plant (Aug 13)
- Petrofac To Sell 49% Of Mexican Operations (Jul 30)
- Petrofac Extends North Sea Contract with Chevron (Oct 05)