Offshore staff

LONDON — IOG has issued an update on its production operations at the Saturn Banks gas fields in the UK southern North Sea.

The company is seeking a further waiver from bondholders and their advisors to provide an additional period of stability to address its balance sheet challenges, following problems with drilling certain wells and production export issues.

If it does not secure the additional waiver from bondholders, this may lead to a default under the bond terms, potentially putting the company into administration.

However, the board does not see this as a likely outcome and anticipates that the waiver will go through. There is currently no agreement concerning a longer-term solution.

Gas rates from the Blythe H2 well have declined naturally to about 26 MMcf/d, with more than 95% operating efficiency this month and no associated water production.

The annual maintenance shutdown at the Perenco reception terminal in Bacton on the Norfolk coast is scheduled for early August and should last about a week, impacting average production.

At the same time, gas prices have been relatively weak averaging in the 70-75p/therm range in July.

07.31.2023