NORTH Sea oil and gas firms have made progress towards delivering the 40 per cent cost savings needed to make the area competitive but have much to do, an industry leader has said.

Oonah Werngren, operations director of the Oil & Gas UK trade body, noted firms were taking tough decisions on resources and trying to cooperate to tackle behaviours that have increased costs in the UK North Sea. Companies including BP and Shell have announced plans to shed hundreds of jobs. Oil & Gas UK noted firms were sharing information about best practice and costly spare parts. Ms Werngren said the industry must increase exploration and work to maximise the recovery of the UK's oil and gas by 2020, with the supply chain reducing production costs to less than $20 per barrel. She added: "The sector now has to deliver the bold action and behavioural change needed to make the vision a reality."