LONDON – IOG is changing its gas sales arrangements for the Saturn Banks project in the UK North Sea following developments in Ukraine.
Last year the company entered an agreement to sell its entire equity production from the Elgood and Southwark fields until October 2023 to Gazprom Marketing & Trading (GM&T).
Elgood and Southwark, along with the Blythe field, comprise Phase 1 of Saturn Banks, which IOG operates.
Via its subsidiaries IOGNSL and IOGUKL, IOG has served notices on London-based GM&T, which has operated in the UK gas market for over 20 years. IOG now expects to sell the Elgood and Southwark equity gas to an alternative buyer.
Andrew Hockey, CEO of IOG, said: “We had strong interest in rights to buy IOG gas during the competitive offtake process we ran last year and would expect to sell the gas to a highly credible alternative buyer. We already have a separate sales agreement in place with BP Gas Marketing Ltd for the Blythe field.”
Saturn Banks is designed to produce at a peak rate of 140 MMcf/d.