Since 2011, fewer than 25% of oil and gas projects on the UK Continental Shelf have been delivered on time, a five-year review by the UK Oil and Gas Authority has found. On average, projects were delayed by 10 months.
Additionally, the review found that projects were on average 35% over budget relative to estimates made in field development plans consented by the Department of Energy and Climate Change and the UK Oil and Gas Authority (OGA). The authority reviewed 58 major projects carried out between 2011 and 2016.
Following this review, a series of events was held with 11 operators and three tier-one contractors to develop a deeper understanding of good practice and areas for improvement.
Gunther Newcombe, OGA operations director, said: “In the last five years, over £40 billion has been invested in new oil and gas projects. This brings considerable benefits in terms of financial contribution to the economy, supporting thousands of skilled jobs and safeguarding the UK’s energy supply.”
To assist with improving project delivery, the industry will be developing guidelines to ensure that good practice to produce better performance is shared among companies.