Pandemic puts projects run by OGTC in danger

Oil & gas: Supply chain issues as schemes at risk of delay or cancellation

Scores of projects run by the Oil and Gas Technology Centre (OGTC) are facing delays or cancellation due to the Covid-19 pandemic.

Nearly half (47%) of the 150 live schemes launched under the auspices of the Aberdeen-based technology accelerator have been affected by the virus, as the oil and gas firms who

“We’re still able to garner interest on energy hubs and coalitions”

help test them defer nonessential spending.

Those focused on exploration and helping to produce more oil and gas have been hit hardest.

But OGTC solution centre manager Myrtle Dawes said digital projects like robotics, wearable technology and predictive modelling, helping to reduce costs and offshore manning levels, remained “quite strong”.

Many projects have had their field trials pushed back to next year, while others have been “seriously affected” by an “indefinite delay” or cancellation, impacting commercialisation opportunities, OGTC said.

About 20% of projects suffering delays or cancellation have seen “medium to high-cost escalation”, the centre added.

Some have also been hit by supply chain issues, with 15% of projects – such as those sourcing robotics from China – facing problems on that front.

By contrast, projects focused on decarbonisation and the energy transition “have had hardly any impact at all”.

Ms Dawes said: “We’re still able to garner interest on energy hubs and on coalitions to look into how we’re going to integrate energy across sectors.”

OGTC opened in 2017, backed by £180m from the Aberdeen City Region Deal. See energyvoice.com for the full story.

HOPE: Digital projects like robotics and predictive modelling, helping to reduce costs and offshore manning levels, remained ‘quite strong’