‘The Independent Oil Company – mighty oaks from little acorns grow’

A conference held at Offshore Europe will address the lack of available funding for the vital roles independent oil companies play in stimulating exploration activity and growing the industry.

Independent energy consultancy, Asset Development and Improvement Ltd (ADIL) will chair a high level discussion to address both the opportunities and challenges these companies face during this year’s Offshore Europe, in Aberdeen on Wednesday, September 4 at 10am.

James Paton, managing director at ADIL, will be chairing the speaker forum titled ‘The Independent Oil Company – mighty oaks from little acorns grow’.

Tony Hayward, CEO of Genel Energy, will deliver the keynote speech, followed by Simon Flowers, head of corporate analysis, Wood Mackenzie; Tom Reynolds, CEO, Bridge Energy; Simon Toole, director of licensing, exploration and development, DECC; Graham Stewart, CEO, Faroe Petroleum; and Dr Marcus Richards, group chief executive, Dana Petroleum.

James Paton explains the focus of the conference: “Small and mid-cap companies operate in a dynamic, fast-moving environment, which allows them to excel at exploiting new regions while also delivering additional value from more mature areas. Numerous independents are making discoveries in frontier regions that have traditionally been ignored by ‘big oil’ – the majors and super majors. As a result, and driven by a high oil price, the independent sector has in recent years become the vibrant and fast-moving face of exploration and production.

“For companies focused on exploration activities a supportive fiscal regime is a critical factor in planning future activity. A strong fiscal stimulus drives down the effective cost of exploration projects attracting investment and maximising exploitation of the region, and an important challenge for government to address. The challenge for independents is accessing the funding necessary to carry out exploration and development activities or to acquire a stake in a producing asset, a challenge which is exacerbated by ever increasing operating costs in mature areas like the North Sea.”

ADIL has found success by developing solutions that assist oil companies, particularly smaller independents, to maximise value from their assets. Two of the company’s biggest on-going ventures are the Solan project, which ADIL is supporting Premier Oil on, and Dana Petroleum’s Western Isles project.

Paton said: “We have an interest in working with the small independent companies that have been the lifeblood of business – we understand them, their needs and the inherent challenges which they face.

“When you look at small companies they take on assets in more mature areas – assets that bigger companies wouldn’t see any value in developing. In frontier territories too, small companies are often more willing to take the initial steps to taking a potential resource beyond conception and into production. Small independents have a massive role to play in the future success of the industry as a whole.”

Project management has provided the springboard for ADIL’s growth over the years but the company also offers expertise in project support, including a newly-established supply chain consultancy team and a licensed software product, which acts as a guide for companies and provides a wide range of resources to help effectively manage and implement a supply-chain process.

The company has grown 30% year-on-year and is targeting similar growth this year. ADIL currently employs around 165 people in Aberdeen, Methil, London, Dubai and China.
ADIL is an integrated development and operations management business established in 2006 to provide full field development and operations services to its operator clients, using tried and tested management tools developed in house by its experienced personnel.

The service offering extends from field appraisal to abandonment and encompasses development and operations management, acquisition support, due diligence and non-operated joint-venture assistance, performance improvement, licence operations management and full supply chain support.