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Offshore Network - Exclusive Interview With Oil & Gas UK

In conjunction with the launch of the Offshore Well Intervention Conference, Offshore Network spoke with Oil & Gas UK’s Dr. Andrew Leonard to get his view on the importance of technology developments for the North Sea.

Dr. Andrew Leonard is responsible for Oil & Gas UK’s new technology strategy. The former BP executive shared his insight on critical issues including:
- The need to introduce new technologies that can mitigate economic and operational risk on future intervention projects in the North Sea
- An outline of the concerns operator’s face when looking to develop and use new technologies for the first time
- Future strategies to develop and introduce new technologies into the field and how this will impact the market
- An assessment of the need to accelerate technological innovation to ensure sustained, economically viable production

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Offshore Network - Exclusive Interview With Oil & Gas UK

  1. 1. Oil & Gas UK callS for new technology developments for North Sea intervention Oil & Gas UK’s Dr Andrew Leonard speaks with Dean Murphy, Director, Offshore Network
  2. 2. Oil & Gas UK callS for new technology developments for North Sea intervention OIL & GAS UK’S DR ANDREW LEONARD SPEAKS WITH DEAN MURPHY, DIRECTOR, OFFSHORE NETWORK Well intervention projects are a top fiscal and operational priority for operators in the North Sea. To borrow a well-used phrase, “the days of easy oil are over.” Well intervention has become a critical feature of the future profitability of brownfield assets as operators seek to extend economic production for as long as possible. To understand more about the importance that new technological developments have to play for the North Sea basin, Offshore Network spoke with Dr Andrew Leonard from Oil & Gas UK Disclaimer: Whilst every effort has been made to ensure the accuracy of the information contained in this publication, neither Offshore Network Ltd nor any of its affiliates past, present or future warrants its accuracy or will, regardless of its or their negligence, assume liability for any foreseeable or unforeseeable use made thereof, which liability is hereby excluded. Consequently, such use is at the recipient’s own risk on the basis that any use by the recipient constitutes agreement to the terms of this disclaimer. The recipient is obliged to inform any subsequent recipient of such terms. Any reproduction, distribution or public use of this report requires prior written permission from Offshore Network Ltd.
  3. 3. OIL & GAS UK CALLS FOR NEW TECHNOLOGY DEVELOPMENT FOR NORTH SEA INTERVENTION Oil & Gas UK’s Andrew Leonard speaks with Dean Murphy, Director, Offshore Network Offshore Network: With the North Sea being such a mature basin, the cost of recovery is constantly growing and areas such as well intervention are becoming more critical than ever before. What role do you believe new technology has to play in the future of the North Sea? Dr Andrew Leonard: The North Sea is a changing market. Finding, developing and producing resources is getting progressively more difficult and the number, size and research capability of operating companies is changing. Overall, technology will continue to play a critical role in the future of the North Sea. Over the last 30 years, technological advancements have been hugely important to North Sea development. In my opinion, technology will play a bigger part in the future for the North Sea as recovering remaining resources becomes more difficult. From a long term UK perspective, the know-how and capability of the supply chain will be the legacy from the North Sea after production has ceased, and we need to insure this capability continues to be nurtured. Offshore Network: What are the biggest concerns for North Sea operators when looking to utilise new technologies? Dr Andrew Leonard: Ultimately, operators are concerned with risk, be that a safety risk, or concern around loss of production. Putting new technologies in your production stream can be tough to justify. As with all new technologies, cost can be another stumbling block for operators in the North Sea. Some new technologies are, for example, expensive the first time around and may have a long payback period. Finally, operators have to ask themselves whether a new piece of technology will deliver if it doesn’t have a track record. Offshore Network Limited, Registered in England and Wales, Company Registered Number 8702032 PAGE 3
  4. 4. OIL & GAS UK CALLS FOR NEW TECHNOLOGY DEVELOPMENT FOR NORTH SEA INTERVENTION Oil & Gas UK’s Andrew Leonard speaks with Dean Murphy, Director, Offshore Network Offshore Network: Across many disciplines including offshore well intervention, many operators have traditionally used tried and tested technology for their work rather than looking to newer options - why is this? Dr Andrew Leonard: There is a risk perception around the introduction of new technology. In some cases, new technology may be more complex, which leads industry to worry about the difficulty of introducing this into their current approach. There is also a bit of a cultural issue within the industry. With a few exceptions, there isn’t a race to be first to apply a new technology. Traditionally, companies like to see new technologies being tried and tested by someone else before they move forward with it. Offshore Network: Recently there has been more activity to develop new technologies and you’re specifically leading this area for Oil & Gas UK – does this demonstrate the operators’ opinions towards new technologies are changing? Dr Andrew Leonard: Overall, there is a changing atmosphere in the industry. With the challenge to find and recover the remaining resources, there appears to be an increasing recognition that adopting new technology is required. Historically, rapid technology, innovation and adoption in the industry is, not surprisingly, driven in areas where there are clear competitive advantages both for operators and/or the supply chain. This is commonly driven by the ability to find or access new reserves. In ‘base operations’ attitudes often focus on keeping things simple and not trying new approaches. Many operators are realising the shape of the North Sea basin is changing and in order to move forward effectively, a more collaborative approach may well be required. This has been reflected in Sir Ian Wood’s recent interim review. Time will tell if a more collaborative approach is embraced. Offshore Network Limited, Registered in England and Wales, Company Registered Number 8702032 PAGE 4
  5. 5. OIL & GAS UK CALLS FOR NEW TECHNOLOGY DEVELOPMENT FOR NORTH SEA INTERVENTION Oil & Gas UK’s Andrew Leonard speaks with Dean Murphy, Director, Offshore NetworK Offshore Network: New technology that drives efficiencies, is built for purpose, increases recovery rates and improves safety will continue to be of utmost importance to industry. Do you have any advice for companies who have new technologies which they are looking to develop for individual disciplines such as well intervention? Dr Andrew Leonard: This is a tough question. The industry overall has not historically excelled at connecting the real strategic needs of the sector with the innovation community. Companies must work hard to establish there is a real need for their technology with their client and build a solid business case. They must also ensure the benefits are realised by their client’s company, not just to the individual rep they are working with – this will ensure the technology is not forgotten if the contact moves on. Companies that develop new technology must plan for success beyond initial testing. They must agree the qualification criteria and the route to a field trial with the client upfront, asthe inability to make field trials happen is one of the biggest hurdles to technology adoption. Offshore Network Limited, Registered in England and Wales, Company Registered Number 8702032 PAGE 5
  6. 6. Oil & Gas UK is the leading representative body for the UK offshore oil and gas industry. It is a not-forprofit organisation, established in April 2007 but with a pedigree stretching back over 40 years. Membership is open to all companies active in the UK continental shelf, from super majors to large contractor businesses and from independent oil companies to SMEs working in the supply chain. Our aim is to strengthen the long-term health of the offshore oil and gas industry in the United Kingdom by working closely with companies across the sector, governments and all other stakeholders to address the issues that affect your business. Dr Andrew Leonard, Consultant, Oil and Gas UK With over 30 years of experience at BP as a geologist and in reservoir management, Andrew then moved into broader operational leadership roles, including asset manager for the Andrew/Cyrus fields and UK exploration. In 2003 Andrew moved into BP’s Upstream Technology organisation running specialist technical support teams and global R&D before taking a role for the BP Group managing the relationship between BP and the University of Cambridge. Andrew retired from BP in March 2013 and now consults for Oil and Gas UK on technology issues associated with EOR and North Sea Technology Strategy. He also had a long running relationship with the Dept of Geology & Petroleum Geology at University of Aberdeen and was made Honorary Professor in 2012. OFFSHORE NETWORK WOULD LOVE TO HEAR FROM YOU… Offshore Network Ltd. is an independent business intelligence & conference provider catering specifically to the offshore oil & gas industry. We exist to facilitate a safe and efficient future for the exploration and production of oil & gas around the globe. We do this by uniting the most influential figures in the industry to challenge the status quo and share cutting edge innovations. This all happens at our industry leading conferences and through our original content. If you would like to contribute to this discussion or are interested in taking part in a future Q&A or article, please contact Offshore Network (www.offsnet.com) today: info@offsnet.com Join the Offshore Engineering Group on LinkedIn UK Telephone: (0)203 411 9937 US Telephone: 713-5706-576 Follow Offshore Network on Twitter Offshore Network Limited, Registered in England and Wales, Company Registered Number 8702032 PAGE 6

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  • YacineBenz

    Mar. 26, 2021

In conjunction with the launch of the Offshore Well Intervention Conference, Offshore Network spoke with Oil & Gas UK’s Dr. Andrew Leonard to get his view on the importance of technology developments for the North Sea. Dr. Andrew Leonard is responsible for Oil & Gas UK’s new technology strategy. The former BP executive shared his insight on critical issues including: - The need to introduce new technologies that can mitigate economic and operational risk on future intervention projects in the North Sea - An outline of the concerns operator’s face when looking to develop and use new technologies for the first time - Future strategies to develop and introduce new technologies into the field and how this will impact the market - An assessment of the need to accelerate technological innovation to ensure sustained, economically viable production

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