A pioneering collaboration between three industry-leading companies has been launched to cut costs in the oil and gas sector.
To form the C2O alliance, we have teamed up with On Line Design and Engineering and Optis Europe, companies we have worked with over the past 10 years and served the same clients in the brownfield oil and gas market for decades.
The mature relationship promotes increased value for money in the market, at a time when the price of oil has hit a six-year low and put severe strain on profitability amongst asset owners and operators. The affiliate organisations have already delivered in excess of £400m of projects together prior to formalising the alliance.
Not only does the collaboration represent a one-stop shop for the complete delivery of brownfield projects, it also reduces the reliance and cost of management contractors who have historically overseen the work undertaken by multiple subcontractors. C2O has not only established an opportunity to reduce the cost of asset-life solutions, they have also created an opportunity for single point accountability in the supply chain.
The collaboration has redefined value for the integrated delivery of brownfield energy projects. The unique model reduces the overall cost to the client, increases the quality of delivery through collaborative working and focuses on providing the right solution from the outset. This couldn’t have come at a better time for operators in the oil and gas market.
The alliance carries the new branding “C2O”, which reflects the integration of the three companies’ respective areas of expertise, which cumulatively form a complete project offering with clearer client interfaces.
Glenn Sibbick, Business Development Director said “In some ways it’s bordering on common sense – there is absolutely no doubt that we are stronger together. Sometimes, the realisation of true value only occurs in the face of adversity and we all need to think differently and identify areas to reduce cost and increase value when the market has been exposed to financial pressures with the price of oil plummeting to $50 a barrel or less.”
The relationship brings benefits beyond cost reduction. The management of projects is improved through linear collaboration and aligned problem solving.
The collaboration offers an opportunity to work together with our clients, delivering solutions without compromise to safety, process or the quality of execution. C2O is confident the need for re-work or delays will be drastically reduced in this new model. This offers increased cost certainty and control, in addition to increasing value.
The venture brings together knowledge, capability and experience for every stage of brownfield projects, not only as service providers, but also through intuitive owner operational experience offered by senior project staff at C2O who have more than 100 years’ experience in senior client roles.
Optis Europe, working closely with both On Line and ourselves, will execute the solutions development stage which, once agreed, will be fully designed by On Line Design & Engineering. CDS can then progress the project through fabrication (both on and off site) and undertake the construction phase. Commissioning and hook-up will be undertaken by all parties with operational handover fulfilled by Optis.
By having all the necessary health and safety, project management and systems skills, and accreditations to undertake entire projects, the venture is looking forward to presenting its offer to the market and realising opportunities for growth, diversification and value creation