Wednesday 31 May 2000

UKOOA 1999 Annual Report Highlights Industry in Transition

The transition of an essentially inward-looking industry which largely ignored external relationships to one now willing to engage openly with its stakeholders is highlighted in the 1999 Annual Report published today by the UK Offshore Operators Association (UKOOA).

Acknowledging that his year as UKOOA President is likely to go down in the industrys history as the year of the Oil and Gas Industry Task Force (OGITF), Bob Connon of Chevron UK Ltd said: The Task Force typifies our transition from an industry that dealt with internal issues to one that is dealing with external stakeholders. The new model is one of consultation and discussion and working out ways forward together.

1999 also saw groundbreaking agreements with the Trades Unions and dialogue with non-governmental organisations (NGOs). The dividends being realised are very real. The standing of the industry, based on a greater understanding, is increasing, he added.

James May, UKOOAs director general, emphasised what he sees as the Associations dual role on the one hand supporting pan-industry activity and initiatives such as LIFT, DEAL, LOGIC and ITF*, while on the other maintaining the ability to represent independently members interests on policy matters and operational and technical issues.

Safety, environmental and economic issues absorbed a large part of our effort, he said, since these are issues that occupy societal concerns and underpin the benefits that the industry delivers to society.

Progress in key areas include:

Safety: positive results under the Step Change initiative, launched in 1997, included the creation of a dedicated support team as well as a Safety Representatives network; the development of new courses in Safety Leadership training; the publication of guidelines for common induction training and the development of a smart card forming the basis of Vantage, the industry-wide system for tracking POB (person on board).

Environment and Energy Policy: progress included the merger of UKOOAs Environment and Energy Policy Task Groups to recognise the close links between the two issues; the adoption by members of UKOOAs environmental commitments; the agreement with DETR and DTI, under the aegis of OGITF, on Principles for Environmental Regulation; and participation in a number of Government consultations, most notably on the Climate Change Levy and the regulations introducing the Integrated Pollution Prevention and Control (IPPC) Directive.

Economic: the industry worked within OGITF to establish a better understanding of its underlying economic drivers and the issues affecting jobs and employment, international competitiveness and investment; the need for Capital Gains Tax Rollover Relief was also successfully promoted.

Other areas of UKOOAs work highlighted in the Annual Report include gas issues, decommissioning, the drill cuttings initiative and employment practices and operational and technical issues.

Note to Editors

1. The UK Offshore Operators Association (UKOOA) is the representative organisation for the UK offshore oil and gas industry. Its 31 members are licensed by the British Government to explore for and produce hydrocarbons in UK waters.

2. Glossary:

 

LIFT: Licence Initiative for Trading a new website designed to promote licence trading;

DEAL: Digital Energy Atlas and Library an interactive

database providing an index for UKCS data;

LOGIC: Leading Oil and Gas Industry Competitiveness

promoting best practice throughout the supply chain;

ITF: Industry Technology Facilitator improving the

facilitation and flow of new technology to market.

For more information, please call 020 7802 2400.