North Sea efficiency drive sees online trading platform kick off
The Efficiency Task Force (ETF)—a group set up to drive a pan-industry improvement in efficiency—has started a trial which will see five operators share 200,000 inventory items on an online trading platform.
The Efficiency Task Force (ETF)—a group set up to drive a pan-industry improvement in efficiency—has started a trial which will see five operators share 200,000 inventory items on an online trading platform. The aim is that by allowing access to a greater ‘virtual’ pool of resources, companies can reduce individual stock holdings and cut lead times for access to vital equipment.
Operating companies Apache North Sea, Centrica, EnQuest, Shell Upstream International and Talisman Sinopec Energy UK Limited have come together to trade their sizeable inventories in the hope of reducing the cost associated with the storage and maintenance of materials.
After a tender process, the ETF began work with Ampelius Trading on an online trading platform. Companies have been preparing details of their inventories since autumn 2015, and Monday saw the launch of some 200,000 items of varying value on the trading platform.
“Improving efficiency through inventory management is potentially a real source of cost saving on the UKCS, as well as providing an opportunity to reduce the loss of offshore production that comes from required equipment not being immediately available when it’s needed,” Stephen Marcos Jones, Oil & Gas UK’s business development director, said. “This is a great example of companies working smarter—together—to ensure we make the most of our operations in the North Sea. In practice, if an operator doesn’t have a specific valve in stock, they’ll be able to access exactly what they need from a company down the road with surplus—rather than ordering a new part to be manufactured.”
“It has been estimated that power companies could save 15–20% of their annual non-fuel procurement costs by adopting innovative procurement and inventory trading initiatives, we are confident that Ampelius is well placed to deliver similar efficiencies and cost savings for the offshore oil and gas industry,” said Andy Taylor, managing director, Ampelius Trading.
The project has been run by experts in oil and gas inventory management for the benefit of the wider sector.
Commenting on his hopes for the future of the initiative, Scott Benzie, materials and inventory lead for Talisman Sinopec Energy UK Limited, said, “Industry has recognised the need to improve its efficiency and inventory management for some time—action in this area provides us with a real opportunity to positively influence costs and support our businesses to get in better competitive shape for the future.”
The next phase of the project will build upon the implementation of the trading platform. An assessment of the opportunity to pool specific high-value items across companies is underway and RB211 turbines have been proposed as a test subject.
“The overarching ambition of the ETF is for as many companies and individuals across the basin to get involved in these initiatives so that this industry becomes as competitive as it possibly can be in the global marketplace and ready to take advantage of the oil price upturn when it happens,” Jones added.
The initiative is initially being run on a trial basis with five operators but further industry participation is being encouraged.
