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Overview and Priorities 2017the voice of the UK oil and gas industry

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Our VisionTo ensure the UK Continental Shelf becomes the most attractive mature oil and gas province in the world with which to do business.

Our MissionTo promote and serve our members’ interests and be the voice of the UK’s oil and gas industry.

Our RoleWe serve all organisations that operate in, or provide services to, the UK upstream oil and gas industry, from super majors and independent producers to large contractor businesses and SMEs.

www.oilandgasuk.co.uk 3

Welcome

Oil & Gas UK is a not-for-profit membership organisation that represents, promotes and connects the many diverse

companies that make up the UK offshore oil and gas industry.

Our members include operators, non-operators and explorers, as well as hundreds of supply chain companies from large contractors to SMEs across the whole of the UK, from Shetland to the south coast.

Given the challenges this industry continues to face, as well as the range of regulators and policy makers it works with, it is now more important than ever that we have a strong industry body, playing a robust but constructive role in shaping policy, regulation and performance.

Oil & Gas UK is proud to be the voice of the offshore oil and gas industry: a sector, so strategically important to the UK in supporting hundreds of thousands of jobs, paying billions of pounds in taxes and investments and boosting the UK economy through its strong exports market.

Oil & Gas UK supports its members and industry by providing advocacy, access and awareness.

We work with governments and all stakeholders to foster a sustainable environment in which the industry can thrive.

Maximising economic recovery is key to this industry’s future.

To achieve this, we must ensure the UK Continental Shelf is one of the most attractive oil and gas provinces in the world with which to do business. Collaboration and co-operation will be key.

Oil & Gas UK will continue to be a catalyst for such activities. Our focus remains on improving leadership and performance through the Efficiency Task Force and other such initiatives and in bringing together people with the right industry experience, expertise and drive to support our members and lead this sector forward.

This document sets out our role and how we are structured to ensure we are prioritised and equipped to represent our members effectively. I hope that you will find it useful.

Deirdre MichieChief Executive, Oil & Gas UK

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Our OrganisationOil & Gas UK is a member-focused organisation with strategic objectives set to best serve our members and the offshore industry. These objectives have been developed to help us deliver the future potential of the UK oil and gas industry, while remaining agile enough to manage new issues as they arise.

We work through the governance structure of our Board, Councils, Forums and Work Groups to ensure that we understand the issues facing our members and align ourselves to best represent the industry.

Oil & Gas UK’s teams are accountable for delivering our objectives, drawing on the support and expertise of all our staff across the organisation.

The health, safety and environment team plays a vital role in reinforcing this industry’s strong safety culture and in ensuring the most appropriate standards for maintaining our licence to operate.

Our upstream policy team helps develop energy and industrial policy with all levels of government, and is working to manage the policy and legislative impact of the UK leaving the European Union.

Oil & Gas UK’s market intelligence team makes us the ‘go to’ body for informed

industry data, providing information and insight.

The business excellence team supports and promotes the supply chain regionally, nationally and internationally, and is bringing industry together to catalyse cultural change in the way companies work with each other and with their own workforce. The team also organises our quality events, which are designed to tackle key issues, bring forward opportunities, connect our members and promote the industry.

The external affairs and communications team ensures that we speak with a clear, strong voice to a wide range of stakeholders through one-to-one engagements, conferences, publications, policy discussions and all forms of media.

Underpinning all our activities is the support given by the finance and corporate services team. They provide finance, HR, IT, legal, facilities management and administrative services across the organisation and for its subsidiaries, LOGIC and CDA1. The legal members of the team also lead on managing industry legal issues through forums and work groups, along with the provision and governance of LOGIC services.

1 LOGIC is the custodian of pan-industry projects driving efficient working practices on the UK Continental Shelf (UKCS), including Master Deed, Vantage POB, the Industry Mutual Hold Harmless agreements and industry Standard Contracts. Common Data Access Limited (CDA) is an operating subsidiary of Oil & Gas UK, set up in 1995 to provide cost-effective data management services to its members and to the UK oil industry in general.


Priority Areas

INDUSTRY VISION

INDUSTRIALSTRATEGY

BREXIT

ENERGY POLICY & CLIMATE CHANGE

COMPETITIVENESS

INVESTMENTSTIMULATION

ASSET LIFE EXTENSION &

DECOMMISSIONING

SUPPLY CHAINRESILIENCE

HEALTH

, SAFETY AND THE ENVIRONMENT HEALTH, SAFETY AND

THE

ENVI

RON

MEN

T

HEALTH, SAFETY AND THE ENVIRONMENT

2017 Business Priority Wheel

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Health, Safety and Environment Team • Systematically evaluate and shape regulatory and societal pressures that have the potential to affect industry’s licence to operate

Upstream Policy Team

• Achieve an attractive regulatory regime and appropriate policies to encourage maximising economic recovery (MER) throughout the exploration and production life cycle

• Sustain a globally competitive fiscal regime that is able to attract and drive inward investment

• Become experts on the UK oil and gas supply chain• Engage in the climate change agenda and demonstrate its compatibility with

MER UK by showing gas and oil to be vital components in the energy mix• Be recognised as the authoritative source of business insight on the industry’s

activity on the UK Continental Shelf (UKCS)• Provide strategic insight to the industry to assist companies to manage collective

risks and create opportunities

Business Excellence Team

• Lead and stimulate collective action to improve the industry’s cost and efficiency performance throughout the exploration and production life cycle

• Foster an attractive business environment in the UK for the supply chain’s goods and services

• Showcase the UK supply chain’s capabilities regionally, nationally and internationally

External Affairs and Communications Team

• Promote gas and oil as vital components of the energy mix and demonstrate the Total Value Added of the industry

• Promote balanced messaging that maintains a positive profile and defends the reputation of the industry

Strategic Objectives


Health, Safety and Environment Team • Systematically evaluate and shape regulatory and societal pressures that have the potential to affect industry’s licence to operate


• Achieve an attractive regulatory regime and appropriate policies to encourage maximising economic recovery (MER) throughout the exploration and production life cycle

• Sustain a globally competitive fiscal regime that is able to attract and drive inward investment

• Become experts on the UK oil and gas supply chain• Engage in the climate change agenda and demonstrate its compatibility with

MER UK by showing gas and oil to be vital components in the energy mix• Be recognised as the authoritative source of business insight on the industry’s

activity on the UK Continental Shelf (UKCS)• Provide strategic insight to the industry to assist companies to manage collective

risks and create opportunities


• Lead and stimulate collective action to improve the industry’s cost and efficiency performance throughout the exploration and production life cycle

• Foster an attractive business environment in the UK for the supply chain’s goods and services

• Showcase the UK supply chain’s capabilities regionally, nationally and internationally


• Promote gas and oil as vital components of the energy mix and demonstrate the Total Value Added of the industry

• Promote balanced messaging that maintains a positive profile and defends the reputation of the industry

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Health, Safety and Environment Team

Helping members to manage regulatory and societal pressures that affect our licence to operate and, when needed, responding to HSE crisis events

The health, safety and environment (HSE) team manages the regulatory pressures emerging from governments that affect the licence to operate.In doing so, they monitor and risk assess relevant legislation, identifying potential areas of concern for our members and key stakeholders.

They also look to influence the development of EU directives and UK regulation, being active in work groups, forums and consultations to develop and implement policy positions.

Maintaining key stakeholder interfaces is vital to their activities, as it allows them to play an active role in policy formation across governments and regulators.

In the rare event of a major incident, the HSE team leads on prompt and appropriate crisis response and helps the whole industry to learn from the incident and improve standards as a result.

Key Areas of Focus

Ageing and complex infrastructure Environment

Brexit Health and safety

Climate change Regulatory effectiveness

Mick Borwell, Director, Health, Safety and Environment


Team PrioritiesEnvironment• Act as a leading representative for industry as further discussions and

consultation take place regarding Marine Protected Areas.• Continue to engage in discussions regarding the scope of the potential EU

Hydrocarbons Best Available Techniques Reference document (BREF). Ensure any new initiatives add value, rather than negatively impact industry.

• Represent industry in the further development of legislation relating to noise in the marine environment.

• Prepare for the OSPAR Convention 2018 review of decommissioning derogations.

Health and safety• Better define causes of hydrocarbon releases and help members produce

management plans.• Maintain focus on asset integrity and maintenance optimisation to ensure

safe operations.• Continue to look for and implement improvements in helicopter operations, with

safety as the priority.

Health & Safety Oil Spill Response

HSE

Environment Environment Operators

Atmospherics

Drilling Fluids

H&S Operators

Environment

HelicopterResilience

Occ. Health & Hygiene

Asset Integrity KPIs

Control &Instrumentation

Unmanned

EERTAG

Electrical

Assurance

Radiological

Modelling

Terminal Operators

Major Hazards

Forum

Network

Specialist / Technical Group

Key

Forums and Work Groups

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Creating an attractive upstream business environment in which to achieve MER, supported by policies that maximise opportunities, mitigate risks and share best practice. Providing high quality and consistent market intelligence to help promote the industry and the UKCS

The upstream policy team works on behalf of members to create an attractive business environment, as well as delivering high quality and consistent market intelligence to provide strategic insight to stakeholders.

The team works with governments, regulators and other stakeholders to help

secure a competitive fiscal regime and shape energy policy, while ensuring the industry maximises opportunities and mitigates risks from across the policy spectrum.

This holistic approach to policy allows Oil & Gas UK to act as a strong positive voice on behalf of the industry.

Key Areas of Focus

Attracting investment Economic contribution and Total Value Added

Boosting short-term activity Decommissioning capability

Stimulating fresh exploration and drilling Climate change

Unlocking proven hydrocarbon resources Brexit

Fiscal competitiveness

Michael Tholen, Director, Upstream Policy


MER (Integrated in

Operator Council)Fiscal Policy Energy and

Climate PolicyGas Market Wells Decommissioning

Upstream Policy

Drillers

Small E&P Companies

FPSO

Well ServiceContractors

Forum

Network

Key

CommercialManagers

Team Priorities

• Work closely with governments, regulators and authorities including HM Treasury, the Department for Business, Energy and Industrial Strategy and the Oil and Gas Authority to facilitate MER UK, ensuring that UK and EU policies are aligned with this outcome.

• Engage with governments to raise the profile of the industry, providing leadership and insight to manage risks and opportunities.

• Secure the best possible outcome for the upstream industry in light of the UK’s decision to leave the EU.

• Use all available policy levers to support the UKCS and stimulate activity in the short term.

• Demonstrate industry’s ability to make a progressive contribution to the climate change agenda while contributing to the UK’s industrial strategy and energy policy.

• Assist the industry to become pre-eminent in late-life asset management and decommissioning, encouraging a fit-for-purpose, risk-based approach supported by the necessary evidence base.

• Support the Oil and Gas Technology Centre, building on the achievements of the well cost reduction work group, small pools group and other current projects.


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Delivering a first class service to our membership; embedding a culture of continuous improvement right across the supply chain and throughout the industry’s workforce; promoting this industry’s excellence regionally, nationally and internationally through innovative means

The business excellence team drives cultural change in the offshore oil and gas industry.

By changing the way in which companies view and work with each other, the team wants to encourage a culture of trust, where operators and suppliers work towards a common goal and knowledge is used to unlock efficiency.

It is important that the workforce is involved and understands the role they play in creating a sustainable future for the UKCS. Without their engagement, culture and behaviours will not change.

To achieve these objectives, the team aims to create a dynamic marketplace through opportunity-based events, showcasing effective business tools and providing first-class member services.

Key Areas of Focus

Culture and behaviours Industrial relations / workforce engagement

Efficiency and cost improvements Supply chain excellence

Stephen Marcos Jones, Director, Business Excellence


Employment and Skills (HR)Supply Chain SME Force

Business Excellence

Improvement

Forum


Key


Team Priorities

• Deliver maximum value to our members through first-class services and engagement.

• Steward the Efficiency Task Force, demonstrating and encouraging industry’s early adoption of efficient practice.

• Understand and promote UK supply chain capabilities to create value domestically and abroad.

• Encourage workforce involvement to drive improved performance in the industry to support a sustainable future and MER UK.

• Deliver a programme of value-for-money events that bring business opportunities to our members.

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Promoting the Total Value Added of the industry through consistent and balanced communication with stakeholders and maintaining a positive profile of our industry

The external affairs and communications team works to promote oil and gas as vital components of the energy mix, demonstrating the positive contribution that industry makes to the UK and beyond.

The team engages with a wide range of stakeholders to promote balanced messaging, maintain a positive profile for the industry and defend its interests. By building and maintaining

relationships, the team is able to amplify key messages to target audiences that reflect and support the objectives of Oil & Gas UK.

Providing support across the organisation, the team facilitates a joined-up approach to communications, helping the industry to speak with one voice across all platforms.

Key Areas of Focus

Competitiveness, investment stimulation and supply chain resilience

Energy policy and climate change

Brexit Economic contribution and Total Value Added

Industrial Strategy / Sector Deal

Trisha O’Reilly, Director, External Affairs and Communications


Government

Team Priorities

• Build and maintain constructive relationships with the UK and Scottish Governments and ensure the industry’s voice is heard as new energy and industrial policy is developed.

• Build understanding of and support for Oil & Gas UK messaging among cross-party politicians, the media and wider stakeholder groups.

• Work with our members to understand the impact of the UK’s decision to leave the EU on our industry, develop clear and concise messaging, and ensure that Oil & Gas UK maintains a voice for industry during the negotiations.

• Support industry’s efficiency drive through effective communications.• Communicate with Oil & Gas UK members and share messaging to ensure

the industry speaks with one voice.• Produce high-quality publications that support Oil & Gas UK as an authoritative

source of business insight.


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Governance and Engagement

The responsibility for setting the strategic direction of the organisation lies with the Oil & Gas UK Board, whose members represent a cross-section of the industry. The Board meets around six times each year.

The Board comprises up to 24 people – twelve representatives from operator companies, ten representatives from contractor/supply chain companies, one representative from an independent or small oil company and the chief executive of Oil & Gas UK.

With the exception of Oil & Gas UK’s chief executive, members of the Board are appointed for two years, when they are then required to stand down and offer themselves for re-election. This rotation cycle maintains a broad accessible representation of members, allowing us to speak on behalf of the entire UK offshore oil and gas industry.

BoardNeil McCullochPresident North SeaEnQuest PLC

Terry SavageCorporate Relationship DirectorGlobal Energy Group

Neil SimsVice President ECIS RegionExpro North Sea

Ray RiddochManaging Director and Senior Vice President EuropeNexen Petroleum U.K. Limited

Vice Co-Chairs

Honorary Treasurer

Co-Chairs

Mark ThomasRegional President BP North Sea


Finance, Remuneration & Nominations CommitteeThe Finance, Remuneration & Nominations Committee is a sub-committee of the Board established to deal with matters conferred upon it, typically dealing with finance or governance. The committee comprises Board officers who are appointed from among the Board members; namely, the operator co-chair, contractor co-chair, the operator vice co-chair, the contractor vice co-chair and the honorary treasurer.

Operator and Contractor Advisory CouncilsAll members of Oil & Gas UK may nominate a representative to either our Operator or Contractor Advisory Councils, which meet four times each year. These councils act as bodies that discuss, advise and help shape policy on issues referred to them by the member companies or the Board. These meetings also allow members to inform the Board and Executive of particular areas of interest, as well as share information.

Forums and Work GroupsOur forums are open to all full members who may nominate a representative to attend on behalf of their company. The forum meetings are vital tools for member engagement and participation, allowing companies to voice their position on particular issues and provide guidance on policy options and proposals. Forums also act as a vehicle for specialist engagement with external

stakeholders including governments and regulators. Associated with the forums are often specialist or technical groups with interest in a specific industry area, or task-finish groups that operate for a period of time to complete a specific activity.

These forums are set out in the preceding pages under the teams that manage them, with the exception of those run by finance and corporate services, whose groups are illustrated below.

EventsOur first-class events programme represents Oil & Gas UK’s intent to provide a varied and attractive offering for our diverse membership base. We have worked alongside members to shape the events calendar, with a variety of different formats addressing a range of commercial, operational, safety and environmental topics. As well as in Aberdeen and London, we host events in the industry’s other regional hubs up and down the country.

Operators Legal

Finance and Corporate Services

Legal Issues

Forum


Key

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Board Members (as at August 2017)

Alan Corbett, Managing Director, Bristow Helicopters

Andrew Thomson, Managing Director, Offshore North Sea, Aramark Limited

Bill Dunnett, Managing Director, Repsol Sinopec UK

Brian James, General Manager, Perenco

Dave Stewart, CEO, Wood Group PSN

Deirdre Michie, CEO, Oil & Gas UK

Elisabeth Proust, Managing Director, Total E&P UK Limited

Greta Lydecker, Managing Director, Chevron

Mark Thomas, Regional President, BP North Sea

Matt Betts, UK Vice President, Halliburton

Morten Kelstrup, Managing Director, Maersk Oil UK

Neil McCulloch, President, North Sea, Enquest Plc

Neil Sims, VP ECIS Region, Expro North Sea

Peter Wilson, Vice President – Operations, Rowan Companies

Phil Kirk, Chief Executive, Chrysaor Limited

Phil Simons, VP North Sea & Canada, Subsea 7

Ray Riddoch, Managing Director and Senior Vice President Europe, Nexen Petroleum U.K. Ltd

Robin Allan, Director, North Sea & Exploration, Premier Oil

Steve Phimister, Upstream Director UK & Ireland, Shell Exploration & Production

Terri King, President UK, ConocoPhillips

Terry Savage, Corporate Relationship Director, Global Energy Group

Walter Thain, Managing Director, West, Petrofac Engineering and Production Services


OperatorCouncil

Subsidiaries

CEO ContractorCouncil

Teams

Group

Board Finance, Remuneration & Nominations Committee

Governance and Organisational Chart

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Our Services

Advocacy

Access

Awareness

Member-owned |Member-led


We promote the whole industry and represent its evolving interests, regionally, nationally and internationally by:

• Engaging with governments, regulators and other external stakeholders

• Facilitating open dialogue across the sector, encouraging co-operation, innovation and sharing of good practice

• Developing pan-industry projects in pursuit of continuous improvement

• Securing profile for industry issues across print, broadcast and digital media

• Industry experts, technical specialists and decision makers

• Industry-leading reports and research• Award-winning, good practice guidelines • Monthly members’ e-newsletter• Discounted briefings, seminars and

conferences• Industry magazine Wireline• Forums and technical work groups where

you can shape the industry agenda and guide policy discussions

• Efficiency Hub portal for sharing common industry challenges and good efficiency practices

• Membership of our policy advisory council

• Strategic networking events• Market access sessions• Policy dinners• Exhibiting at our events at special rates• Advertising in our magazine at

discounted rates• Promotion of your news on our website• Participation in local political visits and

round table discussions

We provide opportunities to raise your profile through:

We keep you ahead of industry trends, market intelligence, and legislative and policy developments through access to:

Benefit

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Membership MapOil & Gas UK represents hundreds of companies involved in the oil and gas sector, stretching the length and breadth of the country. This spans the key hubs for our industry including Aberdeen, Newcastle, Norwich and London, giving us a diverse and highly skilled membership base.


Want to get involved?

Contact the Oil & Gas UK Team on

[email protected]

© 2017 The UK Oil and Gas Industry Association Limited trading as Oil & Gas UK

oilandgasuk.co.uk

@oilandgasuk

Oil & Gas UK

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