WIRELINE Issue 36 - Summer 2016

COLLABORATION INDEX

EFFICIENCY

In total, almost 400 individual pieces of feedback were received, more than 20 on each of the major operators on the UK Continental Shelf. Smaller companies, those employing less than 2,500 people, appear to be more positive about co-operating with operators than those from larger companies, those employing more than 10,000 people. Financial or contractual measures to incentivise a co-operative approach, meanwhile, scored lowest on the index. More work to be done We will join forces with Deloitte again later in the year to repeat the survey to ascertain whether we are seeing a longer term trend.

It’s pleasing to see these green shoots appear but it is essential that we continue to nurture greater co-operation so we will be asking those operators who scored particularly highly to share examples of good practice.

The survey has shown the industry is heading in the right direction.

Co-operation is spreading Direct feedback from companies in the supply chain about their dealings with all major operators across the North Sea reveals that, on a scale of 1 to 10, the Operator Collaboration Index score moved from 5.9 to 6.7 between the summer of 2015, when Deloitte first independently surveyed the sector, and March 2016. This strongly suggests operators are working more co-operatively with their suppliers. The analysis reveals that operators are becoming more open, are engaging the supply chain earlier in projects and are now more likely to seek out new ideas and solutions. This is welcome news.

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Operator collabor index score mo from 5.9 to 6.7 Operator collabora index score mov from 5.9 to .

Operator collaboration index score moves from 5.9 to 6.7 Operator collaboration index score moves fro 5.9 to 6

Oil & Gas UK’s Efficiency Task Force launched the Industry Behaviours Charter at the end of 2015 – a collective commitment to work effectively, fficiently and co-operatively across the UK Continental Shelf. Deloitt has repositioned its i dependent Collaboration Index to review where the offshore sector is successful and where it needs to improve. Oil & Gas UK’s Efficiency Task Force launched the Industry Behaviours Charter at he nd of 2015 – a collective com itment o work effectively, fficiently and co-operatively acros the UK Continental Shelf. has repositioned its independent Collaboration Index to review wher the offshore sector is uc essful and wher it ne ds to improve.

Oil & Gas UK’s Efficiency Task Force launched the Industry Behaviours Charter at the end of 2015 – a collective commitment to work effectively, efficiently and co-operatively across the UK Continental Shelf. Deloitte has repositioned its independent Collaboration Index to review where the offshore sector is successful and where it needs to improve. Oil & Gas UK’s Efficiency Task Force launched the Industry Behaviours Charter at he nd of 2015 – a collective com itment o work effectively, efficiently and co-operatively across the UK Continental Shelf. Deloitte has repositioned its independent Collaboration Index to review where the offshore sector is uc es ful and where it ne ds to improve. D loi

COLLABORATION INDEX KEY RESULTS

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Oil & Gas UK’s Efficiency T Charter at the end of 201 efficiently and co-operativ Deloitte has repositioned i where the offshore sector Operators are engaging the supply chain earlier in projects out of a possible 10 Operators are enga the supply chai earlier in projec Operators are becoming more open ... Operators are engaging the sup ly chain earlier in projects out of a pos ible 10 Operators are engag the sup ly chain earlier in projects Operators are becoming more open .

Operator collaboration index score moves from 5.9 to 6.7

Almost 400 Almost

Operator collaboration index score moves from 5.9 to 6.7

Almost 400 Almost

Operators are becoming more open ... Operators are becoming more open .

the Industry Behaviours itment to work effectively, ntinental Shelf.

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pieces of feedback on all major North Sea operators pieces of e dback on all major North Sea operators

aboration Index to review ere it needs to improve.

out of a possible 10

pieces of feedback on all major North Sea operators pieces of e dback on all major North Sea operators

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out of a possible 10

ing erators are becoming more open ...

Operators are engaging the supply chain earlier in projects

Operators are now more likely to proactively seek out new ideas and solutions from su plie s Operators are now more likely to proactively se k ut new ideas and solutions from su lie s

Smaller companies appear to be more positive Smaller companies ap ear to be more positive

Incentivising collabo by financial mea and through contra Incentivis ng collabor by financial mean nd thr ugh contract

Operators are engaging the supply chain earlier in projects

Smaller companies appear to be more positive Smaller companies ap ear to be more posi ve

Incentivising collaboration by financial means and through contractual terms remain the lowest scoring areas Incentivising collabora on by financial means and through contractual terms remain the lowest scoring areas

Operators are now more likely to proactively seek out new ideas and solutions from suppliers Operators are now more likely to proactively se k out new ideas and solutions from sup liers

about collaboration with operators than larger companies about collaboratio with operators than larger companies

Almost 400 Financial incentives terms remain th lowest scoring ar Financial incentives Financial incentives terms remain the lowest scoring are Financial incentives

about collaboration with operators than larger companies about collaboration with operators than larger companies

Smaller companies ear to be more positive about collaboration with operators than larger companies

Incentivising collaboration by financial means and through contractual terms remain the lowest scoring areas

efficiency@oilandgasuk.co.uk e ciency oilandgasuk.co.uk

efficiency@oilandgasuk.co.uk e ciency oilandgasuk.co.uk

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1 8 Incentivising collaboration by financial means and through contractual terms remain the

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