UKCS Supply Chain Collaboration Improving

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Collaboration within the UKCS upstream supply chain is improving, according to an annual sector survey published by Deloitte and Oil & Gas UK.

Collaboration within the UKCS upstream supply chain is improving, according to an annual sector survey published by Deloitte and Oil & Gas UK.

The latest survey revealed a collaboration index score of 7.1, compared to 6.6 in 2016, marking the third successive annual improvement.

In the 2017 survey, 95 percent of respondents said collaboration is now part of their day to day business, and 43 percent of those surveyed said collaboration efforts were successful compared to 27 percent in 2015. Operators reported significant growth in collaboration success rates; 68 percent in 2017 compared to 51 percent in 2015.

The latest survey shows that cost reduction remains the main reason to collaborate (31 percent) but for the first time sharing knowledge and learning is seen as more important than risk reduction.

“The results demonstrate that for most operators and suppliers, collaboration is shifting from being an aspiration to a reality,” Oil & Gas UK’s Continuous Improvement Manager, Mariesha Jaffray, said in an organization statement.

“The third successive improvement to the collaboration index score has been achieved despite the prolonged period of flux faced by the offshore oil and gas industry, with many companies still experiencing tough conditions,” Jaffray added.

Graham Hollis, senior partner for Deloitte in Aberdeen, said the sector is starting to see real progress in terms of improved behaviors leading to more successful collaboration outcomes in the UKCS.

“Cost reduction is still the main driver of collaboration, but the focus is shifting from transferring risk to sharing knowledge, new ideas and solutions,” Hollis said.

“The results suggest more openness towards business partners and that more companies are taking a closer look at how they can incentivize collaboration better financially. Engaging suppliers earlier in the project lifecycle is also becoming more widespread,” he added.

The 2017 UKCS Upstream Supply Chain Collaboration survey sought the views of over 150 operators and suppliers across the UK Continental Shelf. As part of the survey, the collaboration index measures the effectiveness of companies as partners in collaboration.

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