Thursday 22 October 1998

UKOOA Response To OCA Warning About Tightening Contractor Margins

UK Offshore Operators Association (UKOOA) firmly rejects the Offshore Contractors Associations warning that the future of the contracting sector is being compromised by unreasonable demands by the oil and gas operating companies to reduce margins.

In response to OCA chairman Syd Fudges speech at the Associations annual dinner in Aberdeen (22 October 1998), James May, Director General of UKOOA, said:

You only have to look at what is happening in the industry on a global scale to understand the current pressures on the North Sea sector. These are tough times and the low oil price is leading to rationalisation right across the industry not just here in the UK but elsewhere.

No-one is immune. If the North Sea is to remain competitive we all operators and contractors alike have to look at our overheads and find efficiencies. The CRINE initiative has proved that it is possible for the two sectors to work together productively. We must continue to work together to ensure that the North Sea emerges in a tougher, leaner state than before, well able to meet the challenges of the future

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