IOG updates southern UK North Sea gas plans
Independent Oil & Gas says its two-phase development of 302 bcf of gas from two field hubs in the southern North Sea is technically ready to enter the execution phase.
LONDON – Independent Oil & Gas (IOG) says its two-phase development of 302 bcf of gas from two field hubs in the southern North Sea is technically ready to enter the execution phase.
All engineering for the Phase 1 final investment decision (FID) is complete for the Blythe and Vulcan Satellites hubs, known collectively as the ‘Core Project.’ The export capacity of the offshore Thames pipeline has been demonstrated at 550 MMcf/d and most of the commercial terms are in place with the major contractors.
Shortly, IOG expects to sign documents for the purchase of the onshore Thames Reception Facility at the Bacton gas terminal on the north Norfolk coast.
Current oil price volatility and capital market conditions mean the financing plan is unlikely to be finalized before year-end, and the company is now targeting FID in 1Q 2019, with first gas technically feasible 20 months later.
Last month IOG secured 100% interests in the Harvey East and Goddard licenses under theUK’s 30th Offshore Licensing Round, and preparations continue for the Harvey appraisal well, with a letter of intent (LoI) signed for the jackup Ensco 72 to drill the well, after it has completed two exploration wells for another UK offshore operator.
The rig should arrive on location in 1Q 2019, weather permitting. In addition, IOG has an LoI with Halliburton to provide offshore services for the well, with Fraser Well Management serving as well operator, subject to regulatory approval. Fugro is presently completing the well seabed location survey.