Page 13 - EurOil Week 11 2022

EurOil PROJECTS & COMPANIES EurOil

IOG to sell North Sea gas to BP

instead of Gazprom

UK UK junior IOG has signed a deal to sell gas from with BP Gas Marketing with whom we have
its Saturn Banks gas project in the North Sea enjoyed a long relationship already,’ IOG CEO
A number of UK oil to BP, just over a week after scrapping a deal to Andrey Hockey said in a statement.
and gas companies are transfer the volumes to Russia’s Gazprom. IOG also noted that backgassing and other
cutting ties with Russia. A number of UK oil and gas companies are work to prepare Saturn Banks for its launch was
cutting ties with Gazprom over Russia’s invasion underway as planned. The company has previ-
of Ukraine, including energy group Centrica, ously indicated that first gas would be achieved
which said in early March it was in urgent talks in the third quarter of this year.
to exit all its supply deals with the Russian state IOG also provided an update on progress at
gas supplier. Southwark. Concerns over “rig stability” forced
IOG said on March 1 it had served notices to the company to halt drilling in January in the
Gazprom’s trading and marketing arm, which latest in a string of setbacks at the project. The
won a competitive tender for gas from Saturn Noble Hans Deil rig “has experienced an increas-
Banks’ first phase, which comprises the Elgood, ing challenge with seabed conditions that, if not
Southwark and Blythe fields. It did so in light remediated, would compromise rig stability,” the
of the “shocking” and “unprovoked invasion of company said.
Ukraine.” IOG has now confirmed that “good pro-
The company issued a second statement on gress” is being made concerning the regula-
March 11 noting that it had signed a new gas tory and commercial processes to implement
sales agreement with BP that covers all of IOG’s a “rock dumping solution” to the seabed scour
equity gas from Saturn Banks. It has a 50% inter- issue. Resumption of Southwark drilling is still
est in the development, while Berkshire Hatha- on track for later this month, though it could be
way firm CalEnergy Resources controls the pushed back to mid-April owing to the “inter-
other half. play of logistical factors and tidal conditions.”
“It is another very positive step for IOG to The second stage of Saturn Banks will tar-
have this more comprehensive gas sales agree- get gas at the Goddard, Nailsworth and Elland
ment in place with a highly credible counterparty fields.™

OMV awards FEED for

Hades/Iris find

NORWAY AUSTRIA’S OMV has tapped TechnipFMC for for its size from 85mn to 50mn boe in October,
front-end engineering and design (FEED) work after drilling additional wells in 2019 and 2020.
The contract is valued for a subsea production system at the Iris Hades OMV operates Hades/Iris with a 30% inter-
at $3.4mn. field. est, while its partners are Equinor with 40%,
The contract is valued at NOK30mn ($3.4mn) DNO with 20% and Spirit Energy with 10%. The
and includes an option for an engineering pro- discoveries are located at production licence 644,
curement, construction and installation (EPCI) which was originally awarded in 2012 and has
contract. The gas and condensate discovery is to since been extended until the end of 2023.
be developed using a four-slot subsea temper- In mid-February, OMV was cleared by Nor-
ate with three producing wells tied back to the way’s Petroleum Safety Authority to drill an
Equinor-operated Asgard B platform. additional exploration well at the licence using
OMV was forced to significantly downgrade one of Odfjell Drilling’s semi-submersible rigs.
its resource estimate for its 2018 Hades/Iris dis- The well’s aim is to verify that Iris/Hades is free
coveries. The company now believes Hades is of shallow gas. But if shallow gas is detected,
only 19-145mn barrels of oil equivalent in size, OMV plans to drill two other wells at a second-
whereas OMV lowered its mid-point estimate ary site.™

Week 11 17•March•2022 www. NEWSBASE .com P13