The joint statement comes from Roar Flåthen, leader of the Norwegian Confederation of Trade Unions (LO), Stein Lier Hansen, chief executive of the Federation of Norwegian Industries, Sturla Henriksen, head of the Norwegian Shipowners Association, and Gro Brækken, chief executive of the Norwegian Oil Industry Association (OLF).
These four organisations collaborate through the KonKraft arena, which has produced the 12 proposals submitted today to petroleum and energy minister Ola Borten Moe.
This follows a request to KonKraft from the ministry, which asked the Norwegian petroleum industry to follow up various recommendations from the IOR expert committee (the Åm committee).
In addition, the industry was asked to assess how a collective effort to reduce operating costs on the NCS could be organised.
“The industry is concerned to secure cost reductions and improve recovery,” observes Mr Flåthen. “It’s happy to present measures for drilling more wells, further development of improved-recovery technology, more efficient work processes, greater standardisation and a better cost culture.”
Through work on the proposals from the Åm committee, the industry has yet again seen the significance of the Norwegian model for oil industry governance, where everyone involved contributes to solving national challenges.
“The NCS has a high recovery factor, but the potential for getting more out of existing fields remains high,” says Mr Henriksen. “So KonKraft is very pleased to be able to present 12 specific improvement proposals. We’ll develop and realise most of these ourselves, but some also require collaboration with government. We expect the Ministry of Petroleum and Energy and the relevant administrative agencies to take their share of the responsibility and get our proposed solutions implemented as quickly as possible.”
The proposals from KonKraft have given specific content to the matters raised by the Åm committee, including the allocation of responsibility for further realisation.
“These measures relate to complex conditions of various kinds,” notes Ms Brækken. “We describe, for instance, the way to achieve technological improvements and the content of changes and adjustments to guidelines. This is necessary for further systematic improvement work. A number of the proposals directed at individual organisations must also be considered by these.”
When reviewing the Åm committee’s suggestions, KonKraft established three working parties with high-level representatives from the four participating organisations.
The question of rig costs and capacity has not been considered, since the government has appointed a committee of experts to achieve improvements in this area.
The four organisations have entered into an agreement which ensures ownership and development of standard fabrication contracts for petroleum operations on the NCS.
Under this agreement, the Federation of Norwegian Industries and the OLF undertake to join a board to encourage greater use of such contracts in Norway and for Norwegian deliveries abroad.
The standard contracts will contribute to increased cost efficiency and improved project execution through simplification, more efficient tendering and simpler contract administration.
Use of these contracts can be developed on a sector-by-sector basis as experience is acquired.
“A new regime for further development of standard contracts will be highly significant for petroleum operations on the NCS and internationally,” says Mr Hansen. “We’re very confident that this work will succeed and ensure a greater degree of efficient project execution in the years to come.”
KonKraft presents a number of proposals for improvements in the drilling and well area, including lighter and cheaper equipment for intervention.
Simpler well design, alternatives to fixed drilling installations, data acquisition and reservoir monitoring are among other suggestions.
“Improvements in a number of technological areas related to drilling and well intervention have a substantial potential for improving recovery on the NCS,” says Ms Brækken. “We’re accordingly pleased to be able to present a number of proposals for such enhancements in this area.”
KonKraft maintains that a big potential exists for cutting costs through standardised work processes and equipment.
It accordingly recommends a cross-disciplinary working party which will particularly assess subsea solutions, standardised documentation requirements and project development.
Other areas covered include the cost analyses related to the annual work and long-term programmes of the production licences, life-cycle costs, and cost and regulatory measures.
Further information from:
Tommy Skar, special adviser, LO, mobile: +47 90 50 644 9
Finn Langeland, communications head, Federation of Norwegian Industries, mobile: +47 90 06 42 82
Harald Solberg, director, Norwegian Shipowners Association, mobile: +47 48 08 26 33
Roger Pedersen, communications manager, industry politics, OLF, mobile: +47 91 15 59 61
Hans Petter Rebo, head of secretariat, Konkraft, mobile: +47 97 01 61 69