Offshore Industry: Procurement

Department for Business, Energy and Industrial Strategy written question – answered on 20th February 2019.

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Photo of Ian Mearns Ian Mearns Chair, Backbench Business Committee

To ask the Secretary of State for Business, Energy and Industrial Strategy, what standard tests of appropriate commercial behaviour the Oil and Gas Authority applies to the (a) upstream, (b) midstream and (c) downstream supply chain of the offshore oil and gas industry.

Photo of Claire Perry Claire Perry The Minister of State, Department for Business, Energy and Industrial Strategy, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

The Oil and Gas Authority (OGA) regulates the upstream oil and gas industry. As part of its decision making process to approve new projects (Field Development Plans) the OGA requires oil and gas companies to complete a satisfactory Supply Chain Action Plan (SCAP) which details how the project will be delivered in partnership with the supply chain. SCAPs focus on quality, trust, innovation and engagement, and the SCAP review and marking process aims to encourage the operator and supply chain company to work more closely together to increase efficiency and introduce innovation.

In addition, the OGA works closely with the industry via the Maximising Economic Recovery UK Forum on culture change to improve the commercial behaviours across the sector.

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