IOG Expects 3Q Approval for UK Project
UK small gas producer Independent Oil and Gas (IOG) says it is making progress on its UK southern North Sea gas hub development projects.
It "remains on track for Field Development Plan approvals by end-August 2018" for both Blythe and Vulcan hubs (both 100% IOG-owned), which consist of five fields totalling 2P reserves of 303bn ft3, having submitted the environmental impact assessment for Blythe hub, which also includes the Elgood field. "The company expects to issue an update on funding shortly," said IOG. First gas is scheduled for Q4 2019, subject to project financing.
Preparatory work on the Thames Pipeline continues, added IOG. Upon recommissioning, it will become an important piece of export infrastructure, turning stranded fields into valuable gas assets with direct market access, saving IOG up to £100m in capital costs and opex of a similar order over project life. The deadline for IOG to complete its purchase has been extended by a month to February 2018. “Recommissioning an export pipeline is an unprecedented initiative in the North Sea which will make a substantial contribution to maximising economic recovery from UK waters and open up new strategic opportunities for IOG...With the support of our industry partners we are delivering a stable export route for our gas to the structurally undersupplied UK gas market," said Mark Routh, IOG's CEO.
IOG prominently featured in an analyst's review this week of many more UK offshore projects are expected to take financial close in 2018 than in 2016-17.