Over the past few years the offshore industry has undergone a profound change.
Operators, contractors and suppliers have been forced to find new ways of working as the industry landscape changes, putting pressure on price and schedules. These new ways of working are taking shape in the form of alliances and mergers within the service industry, while operators take a more holistic approach throughout project lifecycles with their established contracts and suppliers.
This paper will review the changes & how new ways of working minimize interfaces, maximize efficiency and capitalise value-added contributions from the service industry.
This paper will also consider how different ways of contracting are evolving to drive the industry to further change regarding how we engage & balance risk between the various industry players.
Acknowledging the progress and promise of these new engagement models, Operators have requested Suppliers to engage during earlier stages as opposed to the traditional process previously followed.
Early engagement brings project execution expertise and experience while providing an innovative outlet for service providers to submit their best design proposals without the constraints of company-specific requirements. These models also provide opportunities to reduce cost, but more importantly – reduce interface, risk and the critical path of project schedules within this new industry landscape ensuring an earlier return on investment.
These changes will require all players in the offshore industry to focus their efforts to achieve additional improvements that go beyond internal processes, mergers, and acquisitions. Although these are necessary to ensure that the industry remains competitive, they alone won’t be sufficient. Operators, Contractors and Suppliers need to also work together to cause and manage a shift in balance between risks and rewards.
Finally, changes in one part of the industry (e.g. Equipment / Contractor type alliances) provide new opportunities in other sectors where collaboration has not yet materialised.
As such there is a promise of further improvement of cost, risk and schedule when these opportunities are materialised.