Oil & Gas UK: Shared industry tools improving efficiency
Oil & Gas UK, a representative body for the UK’s oil and gas industry, reported that the number of companies using shared industry tools developed by Oil & Gas UK and its subsidiary, LOGIC (Leading Oil and Gas Industry Competitiveness) was rising.
According to Oil & Gas UK, shared industry tools simplify procedures and improve the efficiency of working and commercial practices on the UK Continental Shelf (UKCS).
The association said that more than 900 companies signed up to the Industry Mutual Hold Harmless (IMHH) deed that LOGIC operates on behalf of the sector to address the contractual gap which traditionally existed between different contractors working offshore.
Ken Cruickshank, LOGIC’s managing director, said: “With the UK oil and gas sector seeking every opportunity to improve efficiency to maintain competitiveness, the IMHH provides a mechanism for small to medium-sized companies to achieve cost effective risk management by clarifying the allocation of liabilities and costs for key areas of risk covering personnel, property and consequential loss and preventing multiple insurance of identical risks.”
Oil & Gas UK has also revised Standard Agreements for operators involved in the construction and operation of pipelines in the UKCS to address situations when their pipelines will either cross or run in close proximity to one another.
Cruickshank added: “Standard Agreements, updated to reflect new regulations and case law, provide all participating companies with terms and conditions to govern their arrangements, rather than developing their own individual contractual arrangements, while also ensuring their respective interests are cost effective and remain adequately protected.”