New oil chief calls for step up in North Sea performance

The new chief executive of industry body Oil & Gas UK has called for a step up in performance despite confidence in the North Sea plummeting.

Deirdre Michie acknowledged the challenges facing the industry as it adapted to the new lower oil price environment, but said a sustainable future could be achieved for the basin.

“Our industry has a tough journey ahead, but I hope by working together, this sector will become stronger, safer and have a brighter future with a thriving supply chain, for decades to come,” she said.

“This is a difficult time for the offshore oil and gas sector. We need to ensure a step up in its performance to deliver a positive and sustainable future.

“I look forward to working with industry, unions, governments and the regulators in moving this industry forward.”

Outgoing CEO Malcolm Webb, who will step down after a month-long handover, said he was confident his successor would help bring about a revival.

He said: “The North Sea has led the world before, and I believe that under Deirdre’s leadership, and through the guidance of our accomplished board, it can be there again.”

The comments came as the group released its latest quarterly business sentiment index.

The study found an air of pessimism continuing to hang over the North Sea, with confidence falling from -23 to -31 in the first three months of 2015.

It is the third quarter in a row that the index has been negative.

Operations director Oonagh Werngren said firms were continuing to revise their stategies and cut their cloths in response to the lower oil price.

“While the industry continues to operate in a very demanding business environment, there is collective recognition that bold and behavioural change is needed, both on an individual company basis and collaboratively across the sector, to help improve production and production efficiency in the UKCS,” she said.

“This work has clearly started.”