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Offshore offers Latham lessons in cost-cutting
00:00 15 Jun 1995
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Savings of up to 30% have been achieved on offshore development
projects as a result of an industry-wide cost-cutting initiative
which offers crucial lessons to contractors pursuing a similar
exercise in the wake of the Latham report.
The CRINE programme - Cost Reduction Initiative for the New Era - launched in 1993, involves contractors, clients, and suppliers. It aims to reduce development and operating costs of oil and gas fields on the UK Continental shelf by at least a third within 2-3 years.
CRINE has appointed Vic Tuft as a full-time director. He will oversee progress in pushing through a series of reforms which have been identified in a wide-ranging report on the competitiveness of domestic offshore construction and development.
'A significant number of major movers and shakers within the offshore oil and gas industry, have devoted time, effort, and personal credibility by trying to change the way their business is carried out,' said Tuft, seconded to CRINE from Enterprise Oil. 'They have been putting CRINE thinking into action on live projects.'
Tuft says CRINE has led to changes on the Gryphon offshore development which have cut costs by 30% and other projects are showing similar savings. And that 'cultural changes' are essential if the UK offshore industry is to remain competitive and exploit its existing reserves.
He says key issues, now being pursued, include the elimination of adversarial attitudes, use of standard equipment, development of standard pre-qualification criteria, and partnering or alliancing arrangements.
These are also among areas for reform picked out for mainstream building in Sir Michael Latham's 1994 report.
Peter Alden, of Nuclear Electric, is chairman of the Latham working group. He said: 'CRINE is about a year ahead of us in timescale. It is concerned with engineering construction. But there are many similar areas under review.
'We will be looking closely at their industry report and the work of the CRINE committees charged with implementing its proposed reforms. We are keen to see what lessons can be extracted from their progress to date.'
The CRINE programme - Cost Reduction Initiative for the New Era - launched in 1993, involves contractors, clients, and suppliers. It aims to reduce development and operating costs of oil and gas fields on the UK Continental shelf by at least a third within 2-3 years.
CRINE has appointed Vic Tuft as a full-time director. He will oversee progress in pushing through a series of reforms which have been identified in a wide-ranging report on the competitiveness of domestic offshore construction and development.
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'A significant number of major movers and shakers within the offshore oil and gas industry, have devoted time, effort, and personal credibility by trying to change the way their business is carried out,' said Tuft, seconded to CRINE from Enterprise Oil. 'They have been putting CRINE thinking into action on live projects.'
Tuft says CRINE has led to changes on the Gryphon offshore development which have cut costs by 30% and other projects are showing similar savings. And that 'cultural changes' are essential if the UK offshore industry is to remain competitive and exploit its existing reserves.
He says key issues, now being pursued, include the elimination of adversarial attitudes, use of standard equipment, development of standard pre-qualification criteria, and partnering or alliancing arrangements.
These are also among areas for reform picked out for mainstream building in Sir Michael Latham's 1994 report.
Peter Alden, of Nuclear Electric, is chairman of the Latham working group. He said: 'CRINE is about a year ahead of us in timescale. It is concerned with engineering construction. But there are many similar areas under review.
'We will be looking closely at their industry report and the work of the CRINE committees charged with implementing its proposed reforms. We are keen to see what lessons can be extracted from their progress to date.'
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