Companies must not compromise on safety to reduce costs

Thursday, Nov 12, 2015

Abu Dhabi: Companies must not compromise critical industry assets in their endeavour to reduce costs, said experts at the Adipec Offshore and Marine Conference.

They also emphasised during Adipec’s inaugural Offshore and Marine Conference that companies and contractors who choose to cut health, safety, and environment (HSE) funds risk suffering serious consequences and even greater cost implications.

Ebrahim Fahmy, Marine Advisor at the Zakum Development Company (Zadco) and Chairman of the Adipec 2015 Offshore and Marine Conference, urged companies to maintain their important assets and not compromise health and safety procedures, as “safety should always come first”.

In addition, oil and gas stakeholders in the offshore and marine sector should have a strategy to managing their business and ensure that these assets are operated by professionals with the right expertise, he said.

“With a rebound in oil prices expected, now is the right time to invest. In the last couple of months there have been a number of major projects that have been announced in the region, confirming the need for major oil companies to make the right investments towards securing market demand,” Fahmy said.

Taking place in a dedicated waterfront theatre at Adipec’s new Offshore, Marine and Heavy Equipment Zone, more than 40 industry leaders from the UAE and around the world offered a global outlook on maritime security and safety.

Oil output

Abu Dhabi recently announced plans to increase its offshore production capacity so that it accounts for 50 per cent of oil output in the emirate by 2018. The investment in the offshore oil projects is expected to be $25 billion (Dh91.7 billion) in the next five years.

Oil prices plunged by more than 50 per cent in the last one year forcing many companies to cut costs. Abu Dhabi National Oil Company (Adnoc) announced they would slash operational costs by 25 per cent as oil prices drop to record levels. However, safety and maintenance of fields remains top priority, Adnoc said.

Brent crude, the global benchmark was trading at slightly over $45 per barrel at 01:11 PM UAE time.

By Fareed Rahman Senior Business Reporter

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