The UK Oil and Gas Industry Association (OGUK) launched a survey to find solutions to problems the supply chain faces amid low energy prices and the COVID-19 pandemic. The survey was issued to OGUK member companies in the supply chain who range from larger contractors to small and medium-sized enterprises.
Questions in the survey cover offshore activity levels, financial position of companies, employment levels and plans, investment, and feedback on steps that can be taken by industry and government to support the sector
“We’re hoping this survey will give us a clear idea of where governments and regulators can offer specific help that will really make a difference, and we’re urging all of our members in the supply chain to take part,” said OGUK Supply Chain Director Matt Abraham. “In the coming days and weeks, we’ll put forward to government our proposals for a COVID-19 Sectoral Resilience Package and look forward to continuing what has been a positive and constructive dialogue.”
Abraham added the operational impact of the coronavirus pandemic, low oil and gas demand, and low prices mean an uncertain future for many. This comes as the industry was just starting to emerge from the impact of the previous prolonged downturn.
OGUK said results of the survey will help in developing the details of the resilience package being put together by industry to propose to governments in the coming weeks. The survey will also build upon the support offered by governments to companies and self-employed workers and is intended to directly address sector-specific issues. The association said this includes what is known as the stranded middle: companies who currently would not be eligible to apply for the Coronavirus Business Interruption Loan Scheme (CBILS) or the COVID-19 Corporate Financing Facility.
The recently introduced CBILS in the UK will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of between £45 million and £500 million.