Offshore Oil and Gas Facilities

Trade and Industry written question – answered on 12th February 2004.

Alert me about debates like this

Photo of Nick Brown Nick Brown Labour, Newcastle upon Tyne East and Wallsend

To ask the Secretary of State for Trade and Industry

(1) what percentage of man hours involved in the construction of offshore oil and gas facilities destined for UK waters are required by her Department to be based in the UK;

(2) what regulatory regime governs the UK labour content of the construction of facilities for the oil and gas industries based on the UK continental shelf.

Photo of Stephen Timms Stephen Timms Minister of State (e-Commerce & Competitiveness)

DTI's Energy Group does not stipulate the involvement of UK nationals, or UK companies, when awarding licences under the Petroleum Act.

Procurement in relation to hydrocarbon exploration and production is a matter solely for the field operator whose actions are governed by The Utilities Contracts Regulations 1996 which require competitive tendering processes.

Government support the principle of competitive tendering within Europe—as its use is essential if the cost of development on the UK's maturing continental shelf is to be reduced.

DTI works with the industry supply chain in this sector, to improve competitiveness, particularly of UK-based fabricators. These companies, where they have the capability, have won, in open market competition, around two thirds of the value of the contracts on recent UKCS developments.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.