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UK collaboration initiatives offer valuable lessons for Australia’s oil and gas industry

The oil and gas industry collaboration initiatives undertaken in the United Kingdom over the past decade could be applied in Australia to help improve the sector’s productivity and efficiency according to Tom Smith, Senior Energy Advisor, PricewaterhouseCoopers UK.

Smith, who will speak during the Australian Industry Participation stream at the Australasian Oil & Gas Exhibition & Conference (AOG) in Perth, said developments made in the UK could hold some valuable lessons for the Australian industry.

“A decade ago a downturn in world oil prices was threatening many UK firms as investment shifted to more profitable regions around the world. To get things back on course the UK Government launched the PILOT initiative, establishing an Industry Leadership Team comprising operators, contractors and trade unions.

“One of the first orders of business was to tackle the fragmented approach to supply chain management and procurement through introducing streamlined pre-qualification procedures and standardised contracts,” said Smith.

Most of the industry has now signed up to a Supply Chain Code of Practice that includes publicising forward plans, standardised pre-qualification procedures and common contractual terms and conditions. Suppliers are better informed about upcoming opportunities and purchasers are achieving cost and time savings when procuring. 

As a former member of PILOT and co-chair of Oil and Gas UK, Smith has been at the centre of these developments and will offer insights into the drivers for the UK’s collaboration efforts, how the natural reluctance of competitors to work together was overcome and the benefits now flowing to the entire industry.

Smith’s presentation on Wednesday, 19 February at Perth Exhibition and Conference Centre, will be  followed by a panel discussion of how Australian industry might come together to address common issues.

The comprehensive conference program runs over two days from 19 – 20 February and will feature over 150 speakers covering 15 difference conference streams.

[Image: AOG]

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