As of January 2018, the Oil and Gas Authority (OGA) is introducing new measures to ensure operators work appropriately with the supply chain and derive maximum value from project activity.
Supply Chain Action Plans (SCAPs) will be initiated whereby operators will be required to develop effective action plans in respect of all new projects including decommissioning activities.
New guidance, entitled ‘Supply Chain Action Plan Guidance’, is now available (below) to help operators to structure and submit their plans.
The purpose of SCAPs is to assist operators in demonstrating their contract strategies and concepts are comprehensive and well-positioned to deliver ‘best value’ in accordance with their Field Development Plan (FDP) or Decommissioning Programme (DP).
The concept of SCAPs was established some years ago in other sectors and proved successful in driving enhanced value and collaborative behaviours into new projects.
Revitalising exploration and maximising economy recovery of the UKCS is dependent on having a competitive and competent supply chain, which can operate efficiently and innovatively to deliver the services and technologies required to unlock the full potential of the basin.
The OGA will welcome SCAP submissions from January 2018 and expects that they will be included in all FDPs and DPs from 1 April 2018. At the end of the first year, feedback will be sought from industry and the process refined as necessary.
Workshops are being held in early 2018 to ensure a wide understanding of the structure and expectations for these plans.
Note: For further details about the guidance on SCAPs, Operators should contact Christopher.Diggle@nstauthority.co.uk