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Joint Government Industry Change Programme
| Date: | 05 Mar 2002 | | Details: | Radical changes to the way the UK offshore oil and gas industry does business are being brought about as a result of the new co-operative working practices, partnerships and groundbreaking initiatives fostered by PILOT, the innovative joint government industry programme to boost UK competitiveness.
This is the conclusion of PILOT's End of Year Report for 2001, launched today (5 March) and which highlights the following key achievements:
1. Capital investment targets exceeded by £0.5 billion at £3.5 billion;
2. 4.3 million barrels of oil equivalent (boe) produced per day;
3. A record number of oil and gas field development projects approved by the Department of Trade and Industry (DTI) - up from 6 in 1999 during the oil price slump to 21 in 2001;
4. 150 technicians recruited onto industry technician training programme;
5. Launch of the Oil and Gas Sector Sustainability Strategy, one of the first such strategies to be published by a UK industrial sector;
6. £8 million investment in technology development through the PILOT-sponsored Industry Technology Facilitator;
7. Launch of the Progressing Partnership work group to identify commercial, behavioural and supply chain barriers inhibiting recovery of Britain's remaining oil and gas reserves;
8. Launch of the Stimulating Exploration work group to increase offshore oil and gas exploration.
Energy Minister and chair of PILOT, Brian Wilson, said: "PILOT is an exemplary model of how Government and Industry can work together for mutual benefit. PILOT's report, published today, proves that this approach is delivering on the targets which we must achieve if we are to prolong the life of the UK oil and gas sector and maintain employment both onshore and offshore."
Paul Blakeley, general manager of Talisman Energy (UK) and co-chair of the Industry Leadership Team (ILT) within PILOT, said: "Estimates of the UK's remaining oil and gas reserves fall within a range of 26-34 billion boe. How much of those remaining reserves are recovered will depend on how far the Industry is prepared to embrace change. I am convinced that it is by co-operation and partnership that the challenges posed by the maturity of the North Sea and its global competitors will be met.
"PILOT's vision is to secure a long-term future for the UK oil and gas industry and maintain the benefits it brings to the economy in terms of energy supply, jobs, investment and tax revenues. PILOT has made great progress in 2001; more work will be required in 2002 to sustain the industry's success in the longer term."
PILOT's remit is to deliver the target aspirations outlined by the Government's Oil and Gas Industry Task Force in 1999. These include maintaining investment at £3 billion per annum and production at 3 million boe per day to 2010, prolonging UK self-sufficiency in oil and gas, and preserving jobs. PILOT oversees more than 30 initiatives, including specific work to stimulate exploration and accelerate development in new and existing oil and gas fields. Other projects address recruitment and training, safety, technology development, e-Commerce and supply chain management.
Sir Ian Wood, chairman of the John Wood Group and also ILT co-chair, said: "PILOT remains one of the largest change programmes in British industry today. These past twelve months have demonstrated PILOT's willingness to commit and deliver on new ambitious initiatives and to facilitate new levels of understanding and trust in areas which were previously unresolved. Two years after its establishment, PILOT can point to a range of successes across its whole area of operations and can realistically claim to have an influence beyond the immediate range of its initiatives."
Danny Carrigan, national officer of Amicus-AEEU Union and a member of PILOT, said: "This industry supports employment of some 270,000 people across the country, including over 23,000 offshore. The future success of the industry depends on its ability to attract, train and retain a high calibre workforce. We have to do this if we are to meet the skills shortages in the offshore sector. I am delighted at the importance PILOT and the Industry place on this issue and recognise that with PILOT's National Training Organisations Group, the Industry has, for the first time, a dedicated body to co-ordinate skills and training strategy across the whole of the sector."
"The Work of PILOT in 2001" end of year report is available on the PILOT website at www.pilottaskforce.co.uk or in hard copy from the UK Offshore Operators Association on Tel: 020 7802 2400. | | Contact: | Trisha O'Reilly, PILOT Communications Tel: 020 7802 2422 Email: toreilly@ukooa.co.uk |
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For all press enquiries please contact: Trisha O'Reilly at UKOOA Tel: 0207 802 2422 Email: toreilly@ukooa.co.uk
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