Wednesday 6 February 2008

Oil & Gas UK Enhances Supply Chain Engagement in East of England

Industry leaders met in Norwich today to discuss working together to ensure a sustainable future for the oil and gas contracting community based in the East of England. Oil and gas contractors in the region make an important economic contribution to the UK economy and have the potential to enjoy sustained success by streamlining business processes.

Supply chain managers from a range of companies represented by Oil & Gas UK and John Best, EEEGr's chief executive, focused their discussions on increasing efficiency and hence the competitiveness of the oil and gas supply chain in order to secure long-term business both in the UK and overseas along with the associated jobs, skills and technology development.

Norman McLennan, Oil & Gas UK's supply chain manager, said: "Oil & Gas UK is holding its supply chain forum meeting in the east of England as it is an important area within the UK's oil and gas industry. By working co-operatively to improve working practices, oil and gas operators and contractors can ensure that the east of England becomes a focal point from which the UK oil and gas supply chain's domestic and export activity can be increased."

Gas production in the southern sector of the North Sea over the last four decades has encouraged the growth of a supply chain encompassing hundreds of high technology, high value-adding companies and providing nearly 20,000 jobs in the region. These diverse contracting activities can range from pipeline design to catering services on platforms and environmental consulting to drilling services.

Not only does the UK's oil and gas supply chain provide the equipment and expertise in support of domestic production, it also engages in export activity to the tune of £4 billion a year, allowing the transfer of its skills and technology to oil and gas basins around the world. As domestic production declines, overseas business will form an increasingly important part of supply chain activities and its competitiveness is vital if these opportunities are to be maximised.

The delegates discussed how to increase compliance with the industry's supply chain code of practice, a set of guidelines for use in the oil and gas industry which seek to improve working practices, commercial behaviours and the relationship between purchasers and suppliers.

ENDS

Notes to Editors:

1.        Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry.  Its members are companies licensed by the Government to explore for and produce oil and gas in UK waters and those who form any part of the industrys supply chain.  It has 64 members.

2.        EEEGR (the East of England Energy Group) is a business led, business driven energy industry association with a membership comprising of commercial businesses and organisations, public sector agencies, not for profit bodies and academic institutions.

For further information, please contact:

Sally Fraser Press & PR Manager Oil & Gas UK

232/242 Vauxhall Bridge Road London SW1V 1AU Tel: 020 7802 2404 Fax: 020 7802 2401 Email: sfraser@oilandgas.uk Web: www.oilandgas.org.uk