IOG Catches Up on North Sea Schedule
UK-listed Independent Oil and Gas (IOG) said July 17 it may still meet its original 3Q target to get UK regulatory approval of its plans to develop Southern North Sea dual gas hub project.
A month ago, it hinted that was looking unlikely, following a malfunction of a pipeline inspection unit (pig) which meant it gathered insufficient data of a 60-km section of its Thames gas pipeline.
Now, however, it expects regulatory approval of its dual Blythe and Vulcan gas field development plant by the end of September (both 100% IOG). The dual hub project comprises five gas fields, including Blythe and Vulcan, totalling 2P reserves of 303bn ft3 (8.6bn m3) – with as much again in terms of development/appraisal assets.
The company said a cut-section analysis of its Thames pipeline confirms that the offshore section of the pipeline is in excellent condition, while an inspection of the Bacton end of the same pipe is planned in the coming weeks ahead of an expected high-level 24-hour pipe integrity hydrotest.
A further pig run now is not expected to be required until shortly before first gas – meaning regulatory approval can be expected first. Chief executive Andrew Hockey said: “Thanks to some excellent work by the IOG team and support of the regulatory authorities, this does not require an intelligent pig re-run in the short term. This has helped to protect our timeline to FID which in turn ensures that we keep the overall project on schedule to hit first gas in late 2019." By then, the Thames pipeline will run continuously from the Southwark platform to Bacton following the addition of a 7-km, 24-inch extension, IOG added.