LONDON – Independent Oil and Gas (IOG) has signed a letter of intent with Offshore Design Engineering (ODE) to perform various contractor roles for the Blythe Hub and Vulcan Satellites Hub development in the UK southern North Sea.
Initially, this will involve ODE providing technical and operational support ahead of a final investment decision (FID).
The contractor will be responsible for technical and operational support to IOG during the pre- and post-FID stages to deliver the project into production, and will additionally be the operations and maintenance service provider.
IOG says pre-FID costs will be fully deferred and pre-first gas costs 50% deferred until first gas, thereby reducing its funding requirements.
ODE will take on operational management of all IOG’s North Sea assets including theThames pipeline and network of in-field pipelines.
That role will likely be extended to operations and maintenance contractor following first gas, hosting IOG’s operations base at its facilities in Great Yarmouth in Norfolk, close to the Bacton gas reception terminal.
Mark Routh, CEO and interim chairman of IOG, said: “ODE has a wealth of relevant experience and manages several fields for other operators in the southern gas basin of the UK North Sea, so we will benefit from synergies with their existing operations.”