Ten oil companies including Royal Dutch Shell (RDSa.L), Chevron (CVX.N) and BP (BP.L) are working together to develop standard production equipment, a rare cooperation among rivals to save money as low oil prices put pressure on budgets.
Bespoke valves, paints and underwater equipment are among the items that could be mass-produced at a cheaper cost, Harry Brekelmans, Shell’s Projects and Technology Director told Reuters.
The companies also want to set up institutions to find future savings after the past two years’ industry downturn led to a near standstill in new project approvals.
“We’re coming together with a number of other operators and suppliers to focus on standardization and common requirements and pushing it all the way into how we can create common inventory,” Brekelmans said in a phone interview on Wednesday.
