Energy Firms Partner to Cut Costs in the North Sea

 

The tripartite agreement sees collaboration between Petrofac (POFCF) (Duty Holder) and the respective equity owners and operators of the Hewett, Schooner and Ketch gas fields to share logistics and accommodation services across the facilities. Faroe Petroleum is operator and 60 percent equity holder in the Schooner and Ketch fields, and Eni Hewett is operator and 89 percent equity holder in the Hewett complex.

 

Faroe Petroleum has invested in a new variant of NHV’s Augusta Westland 139 helicopter, enabling an increase in passenger numbers and freight capacity, and will share the usage of the helicopter with Eni Hewett. In exchange, offshore personnel contracted to the normally unmanned Schooner and Ketch assets will stay nearby on the Eni Hewett complex rather than returning to shore each day, cutting down travel time and ensuring cost efficient mobilization of personnel. This arrangement also allows for greater flexibility when deploying personnel as Petrofac can mobilize its workforce, as required, across both operations.

 

This approach aims to see the partnership deliver cost reductions and effectively manage resource mobilization through a collaborative and open commercial arrangement.

 

Graham Stewart, Chief Executive of Faroe Petroleum, said, “Since taking over operatorship of Schooner and Ketch last year, we have focused on a number of measures across the supply chain designed to improve operational efficiency without compromising safety which we feel is especially relevant in this new era of low commodity prices.

 

“This arrangement is one such innovative measure, which entails the sharing of key services which will materially reduce offshore operating expenditure, and improve operational efficiency.”

 

Walter Thain, Managing Director, Petrofac Offshore Projects and Operations, said, “To deliver the greatest value for our customers we always place a strong emphasis on cost management. The challenges we currently face as an industry are unprecedented and require us to constantly think differently and be innovative in the approach we take commercially to operations and engaging our supply chain.

 

“Reducing the cost of operations in the UKCS is a collective industry responsibility and we are absolutely committed to playing our part. By delivering cost reductions and synergies safely we benefit our customers and support a broader step change in the culture of the UK oil and gas industry.”

 

Deirdre Michie, Oil & Gas UK’s chief executive, commented, “Oil & Gas UK welcomes the agreement between Petrofac, Faroe Petroleum and Eni Hewett to share resources as it is a great example of ‘cooperation in action’. If we're to fulfil Sir Ian Wood's vision to maximize economic recovery from the UK Continental Shelf (UKCS), co-operation is crucial in restoring competitiveness. We are now hearing examples up and down the country of companies finding ways to work together in order to revitalize the UKCS.

 

“To build on the work of individual companies, Oil & Gas UK has put in place the Efficiency Task Force to provide the catalyst for pan-industry improvement – in processes, standardization and behaviors - so that the UK oil and gas industry can continue to attract investment and support hundreds of thousands of high skilled jobs for decades to come.”