LONDON – Independent Oil and Gas plc (IOG) has signed a letter of intent and consultancy master services agreement (CMSA) with Schlumberger concerning development of its planned Blythe and Vulcan Satellites gas production hubs in the UK southern North Sea.
The CMSA provides a framework for Schlumberger to assist IOG in the run up to a final investment decision. A team from the two companies will jointly complete the field development and execution plans.
Mark Routh, CEO and interim chairman of IOG, said: “The range of services and deep technical expertise provided by Schlumberger will be very valuable for us both in the pre-development phase and the drilling and operational phases of the project. We look forward to finalizing terms with Schlumberger and other key contractors in the coming months.
“Our commercial model aligns the incentives of all project participants towards the efficient delivery of IOG’s substantial gas resources.
“Discussions with potential gas offtakers also continue to progress well and it is envisaged that these arrangements will include gas pre-payments which would also contribute significantly to our development funding.”