Oil & Gas UK today (March 31) releases Edition 3 of its Standard Contract for Services (On and Offshore) as the first in the series of documents being updated to help the oil and gas industry simplify and reduce the time taken to draft, negotiate and execute contracts between purchasers and suppliers.
The document has been updated by LOGIC, Oil & Gas UK’s subsidiary, whose goal is to improve competitiveness throughout the sector in accordance with the PILOT Supply Chain Code of Practice (SCCoP). It is designed to cover a range of services including inspection, repair and maintenance activities, and is the product of a workgroup of legal representatives from both operator and contractor members of the supply chain.
Ken Cruickshank, Operations Manager at Oil & Gas UK, explains: “While there was significant investment in the UK Continental Shelf (UKCS) in 2013, the industry continues to face challenges on many fronts, including rising costs and the need to improve capital efficiency. In these circumstances, it is vital to maintain competitiveness and we want to champion collaborative, industry-wide tools such as standard contracts, to help the supply chain become more cost effective and efficient.
“LOGIC’s Standard Contracts comprise an industry-recognised template which provides purchasers and suppliers with general conditions to help parties to streamline their pre-qualification, tendering and negotiating processes and focus on the commercial terms. This should reduce bidding costs, eliminate waste and add value.”
As one in the series of LOGIC Standard Contracts being updated, this document and its guidance notes reflect new regulations and case law since the publication of Edition 2 in 2004. Future updates will focus on standard contracts relating to a range of operations on the UKCS including design, construction, well services, marine construction, mobile drilling rigs and the wide range of goods and services provided by small to medium enterprises (SMEs).
(While LOGIC asserts copyright, the document is freely reproducible - though users are requested to acknowledge its source, and Word versions will not be supplied.)