Page 16 - EurOil Week 22

EurOil PROJECTS & COMPANIES EurOil

UK’s IOG hands out more

contracts

UK UK junior Independent Oil and Gas (IOG) has for a 50% stake in the scheme last year, providing
dished out contracts for a gas project it is advanc- IOG with the funding it needed to proceed.
IOG continues to ing in the southern North Sea. On June 2, Aberdeen-listed Proserv
prepare for its core gas IOG said in a statement on June 1 it had announced winning a contract from IOG to
project. awarded a well management contract for the provide subsea control systems. Proserv will be
project’s first phase to the UK’s Petrofac. Under responsible for the engineering, construction
the contract, Petrofac will be responsible for the and installation of the Elgood single-well subsea
planning, execution and close-out stage of a drill- tieback. The system will consist of a master con-
ing programme. The planning stage comprises trol station, a subsea control module and subsea
detailed well design, risk assessment and man- distribution and instrumentation.
agement of well-related regulatory requirements. These latest deals follow IOG’s award of an
Moving on to execution, Petrofac will over- engineering, procurement, construction and
see well engineering, procurement and logistics, installation (EPCI) contract in May to Lon-
assure well construction and integrity and pro- don-based Subsea 7 for subsea infrastructure.
vide onshore and offshore personnel to support IOG has said it can ride out market volatility,
the drilling campaign. pointing to its project’s robust economics and
Petrofac has already been working with IOG low operational expenditure. This is the only
on the project this year under a letter of limited production scheme that the London-listed firm
commitment. is currently advancing.
IOG took a final investment decision (FID) IOG is yet to say when it intends to approve
on the project’s first phase in October, which the project’s second phase, which will target the
aims to exploit gas at the Southwark, Blythe and Goddard, Nailsworth and Elland fields. Com-
Elgood gas fields. First gas is expected in early bined, the two stages aim to recover 410bn cubic
2021. US firm CalEnergy Resources farmed in feet (11.6bn cubic metres) of gas. ™

OKEA brings forward Draugen downtime

because of national cuts

NORWAY NORWAY’S OKEA will carry out mainte- OKEA said.
nance work at its Draugen platform earlier than “In order to re-optimise the operation and
Draugen is one of planned, the private equity-backed firm said on production at Draugen, the licence has decided
the fields that will be June 3, because of Oslo’s decision to cut national to move the bi-annual maintenance shutdown
affected by national production. from September to late June,” OKEA said in a
output cuts. Norway, Western Europe’s biggest oil pro- statement.
ducer, announced in late April it would cut its oil Because of the rescheduling, OKEA main-
supply to support efforts by OPEC+ to reduce tains its 2020 production guidance for Draugen
the supply overhang created by the coronavirus of 14,000-15,000 boepd, it said. It has postponed
(COVID-19) pandemic. It pledged to reduce an oil lifting scheduled to take place in June until
output by 250,000 barrels per day in June from August, resulting in a hit to revenues that will be
a baseline level of 1.859mn bpd, easing back to recognised in its financial results. The revised
134,000 bpd below the baseline during the sec- shutdown also increases “the risk of a breach in
ond half of 2020. bond covenants for Q2 2020,” OKEA warned.
Draugen, which has been flowing oil in the “OKEA is currently in dialogue with bond-
Norwegian Sea since 1993, has been included in holders in OKEA02 and OKEA03 to discuss
a list of fields that the country’s energy ministry terms of a temporary waiver,” it said. “The
expects to cut production in 2020. OKEA has a company is also monitoring the progress of the
44.6% stake in the field. Its other field Gjoa, in Norwegian government’s proposed temporary
which it has a 12% interest, is exempted from the changes to the petroleum tax regime, which
cuts. may have a material positive liquidity effect for
Draugen is required to lower its output from OKEA.”
June until the end of the year to 3.63mn barrels OKEA acquired its interests in Draugen and
(17,000 bpd), from an earlier plan of 16,100 bpd, Gjoa for NOK4.52bn ($526mn) in 2018. ™

P16 www. NEWSBASE .com Week 22 04•June•2020