Page 14 - Euroil Week 18 2020

EurOil PROJECTS & COMPANIES EurOil
IOG gets greenlight for North Sea gas project
UK
IOG says it is on track with its schedule
UK junior Independent Oil & Gas (IOG) has been granted the all-clear from regulators to develop its gas project in the southern North Sea.
IOG took a final investment decision (FID) in October on Phase 1 of the project, which will see it exploit the Southwark, Blythe and Elgood gas fields. Production is due to start in July 2021.
The UK Oil & Gas Authority (OGA) has now approved the phase, IOG announced on March 1. With approval in place, the London-listed player expects to sign a full engineering, pro- curement and construction (EPC) contract with a platform contractor in the near future, it said.
At the platform fabrication yard, a two- shift system is in place to optimise coronavirus (COVID-19) restricted working conditions and ensure that work moves forward as planned. Progress also continues with the major long-lead subsea and pipeline items. The 24-inch (610mm) and 12-inch (305mm) line pipes have now been manufactured and delivered from Greece to the UK for storage, ahead of being loaded onto pipe- laying vessels in the summer.
Planning and preparation continues for the pipelaying campaign, which will begin in the sec- ond half of the year. IOG has applied for permis- sion to lay the pipes from the fields to the Thames gas system with the OGA.
The company said that front-end engineering and design (FEED) studies on refurbishing the Thames reception facilities at the Perenco-oper- ated Bacton gas terminal are also ongoing. Wor- ley is serving as engineering contractor.
Initial preparation work at the reception facil- ities is slated to start in May.
“We are very pleased to have received this milestone approval for our core UK gas project,” IOG CEO Andrew Hockey said. “Such govern- ment endorsement brings a welcome boost to the UK offshore industry and supply chain given the current environment.”
The company head added that IOG had so far avoided any delays owing to the COVID-19 pandemic, and was working to cut costs further to ensure the project is delivered on time and on budget.
IOG is yet to say when it intends to approve Phase 2 of the Core project, covering the God- dard, Nailsworth and Elland fields also in the southern North Sea. The two phases are targeting a combined 11.6bn cubic metres of gas.
Technical work also continues on the Harvey and Redwell gas discoveries, which IOG esti- mates to hold almost 4 bcm in resources com- bined. IOG suffered a setback in February, when US-based CalEnergy Resources (CER)’s option for a 50% stake in the two finds expired.
CER closed a farm-in deal in October to take 50% stakes in all IOG’s offshore reserves save for Harvey and Redwell, with the agreement only including an option for these last two pro- jects. CER, owned by Berkshire Hathaway, may have been disappointed by results at Harvey, where a well found less gas than anticipated in September.
IOG is also hopeful of landing additional acreage in the UK’s 32nd offshore licensing round, noting that there are several sites near its existing operations that offer growth opportuni- ties. ™
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w w w . N E W S B A S E . c o m Week 18 07•May•2020