IOG alters North Sea project drilling plans
Formal contract awards should follow soon afterwards. Under the revised Phase 1 field development plan, first gas should flow from the Southwark field in July 2021.
IOG now plans to accelerate drilling and completion of the Elgood subsea well allowing production from Blythe and Elgood to start simultaneously, three months after Southwark.
Although this will mean a higher capex spend prior to Phase 1 first gas, it should boost production during winter 2021, given relatively high forecast initial rates from Blythe and Elgood.
UK gas prices are typically substantially higher during the winter months.