Saudi FM calls Indian, Pakistani counterparts to discuss developments    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Arabia cracks down on fraudulent Hajj campaigns, urges pilgrims to use official channels    Nammos Amala Resort to open soon with Saudi-Greek designs    Saudi Arabia completes 674 Vision 2030 initiatives, achieves 93% of KPIs as ninth-year milestone marked    Literature Commission inaugurates Saudi Pavilion at Muscat Book Fair    Saudi Minister of Culture holds talks with his Costa Rican counterpart in Jeddah    Alkhorayef praises advancements in Al-Kharj food industries sector    MHRSD: 80% of recruitment offices are non-compliant with regulations    At least 50 Palestinians killed in Israeli strikes across Gaza    Teenage girl killed in French school stabbing attack    Trump claims meeting with China after Beijing denies any trade negotiations    GACA chief chairs 16th meeting of the Steering Committee on aviation's strategy    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Jennifer Lopez dazzles in Jeddah with a Formula 1 performance    Saudi Arabia open to expanded 64-team World Cup in 2034, says sports minister    Average life expectancy in Saudi Arabia rises to78.8 years    Film Commission launches 'Cinema' initiative to enhance content    Famed Philippine film star Nora Aunor dies at 71    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



UK maintenance spending to reach lowest on record
Published in The Saudi Gazette on 12 - 05 - 2020

Western Europe's maintenance, modification and operations (MMO) market will likely take a major hit in 2020 a Rystad Energy impact analysis has revealed, thanks to severe spending cuts and Covid-19 transportation restrictions.
Spending in Norway is expected to fall to $3.4 billion this year — an 18-year low — while UK spending is on track to fall to $2.9 billion, the lowest level seen since at least 1990.
This year we expect brownfield-related MMO support to drop by 30% in Norway and 35% in the UK. Oil and gas prices are expected to improve from the second half of the year, and with that, brownfield budgets are set to slightly improve in 2021.
However, if companies need to continue with minimum manning and operations for a prolonged period, spending in the region is likely to be even lower for 2020 as a whole.
"We expect a drastic decline in MMO manhours ahead as operators reduce activity and handle a greater share of such jobs with their own staff, as seen in the previous downturn.
"The swift oil price decline is coupled with coronavirus regulations and operators are forced to adjust," says Rystad Energy's Lein Mann Hansen, an analyst within Energy Service Research.
This will boost the potential for insourcing maintenance and operations jobs and will result in significant cuts in operator expenditures.
However, even though oil prices and weak market activity in the medium term will send operators into survival mode, they cannot expect significant cost cuts within the supply chain as there aren't many additional productivity improvements to be found.
Multiple fields that were expected to come on line in Norway and the UK this year have recently been delayed to 2021, reducing brownfield services revenues for service providers.
In Norway, the fields impacted by delays are Martin Linge, the Njord Future redevelopment, Hyme, Bauge, Yme and Tor. Restrictions to curb the spread of Covid-19 played an important role for some of these delays.
Norway joins other oil producing countries in cutting production in the second half of the year, and some of Norway's contribution to this decrease will come by delaying the start-up of some new fields, including Yme.
In the UK there has been no direct communication about potential start-up delays at new field developments, but we may see delays to 2021 for BP's Vorlich and Shell's Fram projects.
"As contracts come up for renewal, MMO suppliers are, yet again, in a position of weaker bargaining power. All providers will do everything they can to win these contracts and secure activity and visibility in uncertain times. One thing is clear — suppliers will now face tougher competition, and the operators hold better cards," added Hansen. — Rystad Energy


Clic here to read the story from its source.