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Journal of the Australian Petroleum Production & Exploration Association (APPEA)
RESEARCH ARTICLE (Non peer reviewed)

Ready to collaborate? Operator and supply chain under the spotlight

Mike Lynn A B and Alan Samuel A
+ Author Affiliations
- Author Affiliations

A Deloitte, Tower 2, Brookfield Place, 123 St Georges Terrace, Perth, WA 6000, Australia.

B Corresponding author. Email: MLynn@deloitte.com.au

The APPEA Journal 57(2) 498-501 https://doi.org/10.1071/AJ16155
Accepted: 23 March 2017   Published: 29 May 2017

Abstract

In the last 12 months or so, particularly with the drop in oil price, there’s been a lot of speculation about the future of the Australian oil and gas industry. Strenuous efforts are being made to bring down costs, reduce complexity and expedite the completion of major capital projects.

Yet with the commodity price looking likely to be subdued for some time, serious questions persist. How can we sustain activity in Australia, secure the investment needed to continue exploration and appraisal drilling, for the next wave of projects?

In looking for answers to these challenges, collaboration is a theme that comes up time and time again. But what does it actually mean? What does it look like in practice? Who does it well and how? And which companies are reaping the rewards of great collaboration?

To fill this knowledge gap we are launching a survey which will look at many aspects of collaboration in the Australia and compare this with the results of similar surveys conducted in the UK. We will be looking to survey both operators and service companies working in the Australia and find out:

  • What does collaboration mean?

  • What constitutes effective collaboration?

  • How do companies view themselves and each other as collaborators?

  • How does collaboration in Australia compare with companies in the North Sea?

We hope a better understanding of collaboration could help companies in Australia continue to improve productivity and efficiency, adopt new ways of working, and truly make the most of Australia’s abundant resources.

Keywords: collaboration, continental shelf, LNG, Netherlands, North Sea, oil and gas, UK.

Mike Lynn is the Deputy Head of Oil and Gas for Deloitte in Asia Pacific. Based in Western Australia, Mike provides innovative solutions for IOCs, NOCs and service providers in the region. He has worked internationally for Energy clients throughout his career delivering services including strategy development, digital transformation, organisation redesign, business model and management system design, and supply chain optimisation. He has a passion for LNG and adores his wife and two boys in primary school!

Alan Samuel is a Director in Deloitte’s Management Consulting practice in Perth, Australia, with 20 years of experience in major capital projects, asset management and organisation transformation across the resources industry, with special focus on oil and gas. In 2010, Alan transferred from the Netherlands to Australia to focus on the (F)LNG assets, supporting owner/operator companies in their transformational readiness journeys from capital project delivery into operatorship. His professional mission is to improve industry collaboration in all aspects, his personal goal to become the undisputed master chef of charcoal cooked satay ayam in Australia.


References

Cornelissen, B. (2016). Collaboration within the supply chain: a win–win strategy for the Dutch oil and gas industry. Available at https://www2.deloitte.com/nl/nl/pages/energy-and-resources/articles/collaboration-within-the-supply-chain.html [Verified 28 March 2017].

Deloitte. (2016). The Deloitte global CPO survey 2016. Procurement: at a digital tipping point? Available at https://www2.deloitte.com/content/dam/Deloitte/de/Documents/technology/Global-CPO-Survey-2016.pdf [Verified 18 April 2017].

Deloitte. (2017). The Deloitte global chief procurement officer survey 2017. Growth: the cost and digital imperative. Available at https://www2.deloitte.com/uk/en/pages/operations/articles/cpo-survey.html [Verified 28 March 2017].

Gibbons, G., and Clark, N. (2016). The time for radical change is now: the UKCS Upstream Supply Chain Collaboration Survey. Available at https://www2.deloitte.com/uk/en/pages/energy-and-resources/articles/collaborating-for-success-making-the-most-of-UKCS.html [Verified 28 March 2017].