The industry and government are working together through the Changing Gear Initiative to improve engagement and compliance within the sector of the three industry codes of practice (CoP). The codes are a set of best practice guidelines, which have emerged from joint efforts by industry to standardise and simplify commercial arrangements between companies. They fall into three critical areas; to ensure an efficient supply chain, create positive commercial behaviour and improve third party access to offshore infrastructure.

Following the PILOT meeting in November 2007, a work group was created to improve companies’ commitment to the CoP and address specific issues of concern.  In particular the group focuses on:

• Supply Chain CoP and the use of FPAL in prequalification

• Commercial CoP (e.g. streamlining the closure of commercial deals) and the use of standard agreements

• Infrastructure CoP, facilitating access and timely deal making

The group, which works under the management of co-chairs John Gallagher from Shell, and Simon Toole from the Department of Business Enterprise and Regulatory Reform (BERR), has set up several meetings with the aim of pushing forward issues such as increasing enforcement of the codes and speeding up the completion of deals.  

It is in the oil and gas industry’s interest to streamline processes through the use of  CoP and focus efforts on value creation. The current level of investment on the UK Continental Shelf (UKCS) and its associated activity is stretching the available resources and this is set to increase as the UK province matures.  

With costs at an all time high in the basin it has never been more important that we find ways to add value and improve performance; this will ensure the future competitiveness of the UKCS.  As the diversity of players in the basin evolves and smaller operating companies arrive, the industry needs to change to a culture of faster, more efficient, ways of doing business.