UK Upstream Group Probes Supply Chain Risks
Offshore industry group Oil & Gas UK has launched a survey in a bid to help find solutions to the problems faced by the hundreds of companies in the supply chain, it said April 3. These are "the stranded middle": companies who are not eligible to apply for the Coronavirus Business Interruption Loan (CBIL) Scheme or the Covid-19 Corporate Financing Facility but are like their larger peers facing the "triple whammy" of the coronavirus pandemic, low oil and gas prices and low demand.
The results of the survey will inform the details of a Covid-19 Sectoral Resilience Package being put together by industry to propose to governments in the coming weeks. It will build upon the already extensive support offered by governments to companies and self-employed workers and is intended to directly address sector-specific issues.
Late April 2, the UK government announced a Coronavirus Large Business Interruption Loan Scheme which will provide a government guarantee of 80% to enable banks to make loans of up to £25 ($30.3)mn to firms with an annual turnover of between £45mn and £500mn.
OGUK said: "Last night’s announcement from government is welcome and confirms it is listening and responding to feedback, however there are still specific issues with regards to support for the oil and gas sector which OGUK is working to address with both UK and Scottish governments."
