Thursday 8 April 1999

Greater Collaboration is Key to North Sea’s Future Says UKOOA President Bob Connon

The UK oil and gas industry must engage in greater collaboration if it is to shape up to the challenges created by current low oil prices, the Aberdeen business community was told today (8 April) at a breakfast meeting organised by the UK Offshore Operators Association.

Initiating the UKOOA Energy Breakfast meetings at the Marcliffe at Pitfodels Hotel, Aberdeen, UKOOA President and Chevron Europe Managing Director Bob Connon stressed the importance of companies co-operating in every way they can, by sharing knowledge, facilities and infrastructure to deliver cost savings to the benefit of all.

I believe we are at a point in the history of the North Sea where competing for its own sake must stop, he said. Let us co-operate everywhere that we can and compete only where we can capture commercial advantage.

Mr Connon defined the new reality facing the Industry as the three Cs - costs, change and collaboration. While the Industry must drive down its costs to survive in the long term, it must not view the inevitable squeeze on margins as a lose situation.

Here instead is an opportunity to grow business, he argued. By lowering the cost of producing oil and gas, we open up the possibility of new developments that would not have gone ahead at higher cost levels, or of extending the life of existing fields creating extra work, jobs and profits.

UKOOA has launched its Energy Breakfasts series of open forum sessions as an information and networking opportunity for those in the business community whose future success depends, directly or indirectly, on the oil and gas industry in Aberdeen.

Dr John Wils, UKOOA Operational and Technical Director, said: By giving the local business community a dialogue with top industry influencers and decision-makers, and keeping business briefed on the views and plans of the major players, we can, hopefully, help to meet the challenges created by current North Sea economics.

The next UKOOA Energy Breakfast will be held on 18 May with guest speaker Norman Chambers, President of Halliburton Energy Development.

For more information, please call 020 7802 2400.