Hendrik-SnymanBy Sarah Byrne

WOODSIDE chief procurement officer Hendrik Snyman said the present low oil price environment should be taken as an opportunity for companies to fix their cost base and become more competitive.

Speaking at the recent Australian Oil and Gas conference in Perth, Mr Snyman said Woodside was positioning itself for growth and saw the current challenging oil and gas market as an opportunity to fix its cost base.

Mr Snyman stressed that if other companies want to work in partnership with Woodside, they need to follow Woodside’s lead in fixing their cost base to become more competitive.

“When times are tough, being average is not good enough,” he said.

Mr Snyman said there is opportunity for innovations in the challenging environment and it is important to challenge the status quo.

In Mr Snyman’s presentation he provided an example of Woodside engaging with an Australian company that provides a product or innovation that cleans the exterior of offshore vessels without having to send them internationally for cleaning.

Woodside had previously been sending the vessels to Singapore, which reduced efficiency and slowed down work, Mr Snyman explained.

“That is the kind of innovation we are looking for, challenging the status quo, challenging our cost base and driving efficiency,” he said.

With many of the big construction projects nearing completion, the price of oil plummeting and industry costs going up, Mr Snyman said it is important for Woodside to build partnerships and engage with Australian companies to work together and create a competitive advantage.