In conjunction with the launch of the Offshore Well Intervention Conference, Offshore Network spoke with Oil & Gas UK’s Dr. Andrew Leonard to get his view on the importance of technology developments for the North Sea. Dr. Andrew Leonard is responsible for Oil & Gas UK’s new technology strategy. The former BP executive shared his insight on critical issues including: - The need to introduce new technologies that can mitigate economic and operational risk on future intervention projects in the North Sea - An outline of the concerns operator’s face when looking to develop and use new technologies for the first time - Future strategies to develop and introduce new technologies into the field and how this will impact the market - An assessment of the need to accelerate technological innovation to ensure sustained, economically viable production

1. Oil & Gas UK callS for new
technology developments
for North Sea intervention
Oil & Gas UK’s Dr Andrew Leonard speaks with
Dean Murphy, Director, Offshore Network

2. Oil & Gas UK callS for new
technology developments
for North Sea intervention
OIL & GAS UK’S DR ANDREW LEONARD SPEAKS WITH
DEAN MURPHY, DIRECTOR, OFFSHORE NETWORK
Well intervention projects are a top fiscal and
operational priority for operators in the North Sea.
To borrow a well-used phrase, “the days of easy oil
are over.” Well intervention has become a critical
feature of the future profitability of brownfield
assets as operators seek to extend economic
production for as long as possible. To understand
more about the importance that new technological
developments have to play for the North Sea basin,
Offshore Network spoke with Dr Andrew Leonard
from Oil & Gas UK
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3. OIL & GAS UK CALLS FOR NEW TECHNOLOGY
DEVELOPMENT FOR NORTH SEA INTERVENTION
Oil & Gas UK’s Andrew Leonard speaks with Dean Murphy, Director, Offshore Network
Offshore Network: With the North Sea being such a mature
basin, the cost of recovery is constantly growing and areas such
as well intervention are becoming more critical than ever before.
What role do you believe new technology has to play in the future
of the North Sea?
Dr Andrew Leonard: The North Sea is a changing market. Finding,
developing and producing resources is getting progressively more
difficult and the number, size and research capability of operating
companies is changing.
Overall, technology will continue to play a critical role in the future
of the North Sea. Over the last 30 years, technological advancements
have been hugely important to North Sea development. In my
opinion, technology will play a bigger part in the future for the North
Sea as recovering remaining resources becomes more difficult.
From a long term UK perspective, the know-how and capability of the
supply chain will be the legacy from the North Sea after production
has ceased, and we need to insure this capability continues to be
nurtured.
Offshore Network: What are the biggest concerns for North Sea
operators when looking to utilise new technologies?
Dr Andrew Leonard: Ultimately, operators are concerned with risk,
be that a safety risk, or concern around loss of production. Putting
new technologies in your production stream can be tough to justify.
As with all new technologies, cost can be another stumbling block for
operators in the North Sea. Some new technologies are, for example,
expensive the first time around and may have a long payback period.
Finally, operators have to ask themselves whether a new piece of
technology will deliver if it doesn’t have a track record.
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4. OIL & GAS UK CALLS FOR NEW TECHNOLOGY
DEVELOPMENT FOR NORTH SEA INTERVENTION
Oil & Gas UK’s Andrew Leonard speaks with Dean Murphy, Director, Offshore Network
Offshore Network: Across many disciplines including offshore
well intervention, many operators have traditionally used tried
and tested technology for their work rather than looking to
newer options - why is this?
Dr Andrew Leonard: There is a risk perception around the
introduction of new technology. In some cases, new technology may
be more complex, which leads industry to worry about the difficulty
of introducing this into their current approach.
There is also a bit of a cultural issue within the industry. With a few
exceptions, there isn’t a race to be first to apply a new technology.
Traditionally, companies like to see new technologies being tried and
tested by someone else before they move forward with it.
Offshore Network: Recently there has been more activity to
develop new technologies and you’re specifically leading this area
for Oil & Gas UK – does this demonstrate the operators’ opinions
towards new technologies are changing?
Dr Andrew Leonard: Overall, there is a changing atmosphere in
the industry. With the challenge to find and recover the remaining
resources, there appears to be an increasing recognition that
adopting new technology is required.
Historically, rapid technology, innovation and adoption in the
industry is, not surprisingly, driven in areas where there are clear
competitive advantages both for operators and/or the supply chain.
This is commonly driven by the ability to find or access new reserves.
In ‘base operations’ attitudes often focus on keeping things simple
and not trying new approaches.
Many operators are realising the shape of the North Sea basin
is changing and in order to move forward effectively, a more
collaborative approach may well be required. This has been reflected
in Sir Ian Wood’s recent interim review. Time will tell if a more
collaborative approach is embraced.
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5. OIL & GAS UK CALLS FOR NEW TECHNOLOGY
DEVELOPMENT FOR NORTH SEA INTERVENTION
Oil & Gas UK’s Andrew Leonard speaks with Dean Murphy, Director, Offshore NetworK
Offshore Network: New technology that drives efficiencies, is
built for purpose, increases recovery rates and improves safety
will continue to be of utmost importance to industry. Do you have
any advice for companies who have new technologies which they
are looking to develop for individual disciplines such as well
intervention?
Dr Andrew Leonard: This is a tough question. The industry overall
has not historically excelled at connecting the real strategic needs of
the sector with the innovation community.
Companies must work hard to establish there is a real need for their
technology with their client and build a solid business case. They
must also ensure the benefits are realised by their client’s company,
not just to the individual rep they are working with – this will ensure
the technology is not forgotten if the contact moves on.
Companies that develop new technology must plan for success
beyond initial testing. They must agree the qualification criteria and
the route to a field trial with the client upfront, asthe inability to
make field trials happen is one of the biggest hurdles to technology
adoption.
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6. Oil & Gas UK is the leading representative body for the UK offshore oil and gas industry. It is a not-forprofit organisation, established in April 2007 but with a pedigree stretching back over 40 years.
Membership is open to all companies active in the UK continental shelf, from super majors to large
contractor businesses and from independent oil companies to SMEs working in the supply chain.
Our aim is to strengthen the long-term health of the offshore oil and gas industry in the United Kingdom
by working closely with companies across the sector, governments and all other stakeholders to address
the issues that affect your business.
Dr Andrew Leonard, Consultant, Oil and Gas UK With over 30 years of experience at BP as a geologist
and in reservoir management, Andrew then moved into broader operational leadership roles, including
asset manager for the Andrew/Cyrus fields and
UK exploration.
In 2003 Andrew moved into BP’s Upstream Technology organisation running specialist technical support
teams and global R&D before taking a role for the BP Group managing the relationship between BP and
the University of Cambridge.
Andrew retired from BP in March 2013 and now consults for Oil and Gas UK on technology issues
associated with EOR and North Sea Technology Strategy. He also had a long running relationship with
the Dept of Geology & Petroleum Geology at University of Aberdeen and was made Honorary
Professor in 2012.
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