IOG Files Plan to Develop N Sea Blythe Hub

UK-listed Independent Oil and Gas said it submitted the field development plan (FDP) July 19 for the Blythe hub, comprising the southern North Sea gas fields Blythe and Elgood, to the UK upstream regulator Oil & Gas Authority. Its statement did not disclose the expected development cost. Both fields are 100% IOG-owned and close to existing pipelines. This follows on from IOG's submission of a draft FDP for only the Blythe field in December 2016.

Blythe contains independently verified 2P reserves of 34.3bn ft³ (6.1mn barrels of oil equivalent) while Elgood has 22bn ft³ of 2C resources (4.3mn boe).  A new independent audit of the Blythe Hub is being undertaken. On FDP approval, the Elgood resources would be upgraded to 2P.

The Blythe hub is expected to provide the first gas for IOG via the Thames Pipeline and therefore the first revenues to IOG from its current portfolio of assets. IOG is in the process of completing the 100% acquisition of the pipeline which is intended to be tested and recommissioned.

There are significant synergies with the 100%-owned Vulcan Satellites Hub, containing independently verified 2C resources of 321bn ft³ (55.45mn boe), also intended to use the Thames Pipeline. IOG is also 100% owner of the Harvey discovery, which lies between the Blythe and Vulcan Satellites Hubs. Harvey, which needs further appraisal, is estimated to have P50 recoverable resources of 113bn ft³.

Mark Smedley