Independent Oil and Gas plc (IOG) said it expected 2021 to be another breakthrough year with first production and revenue in the UK Southern North Sea.
The company, which operates an infrastructure-led hub strategy, added that Phase 1 remained on schedule for first gas during the third quarter of 2021.
The Blythe and Elgood offshore pipelay campaign was carried out during Q4 2020, and detailed well design is due to be completed in Q1. The first development well is expected to spud by early Q2.
Platform fabrication is also expected to be completed in Q1 before installation in Q2.
Fabrication of the Phase 1 Southwark and Blythe platforms at HSM’s yard in Schiedam, the Netherlands remains on track for mechanical completion later in Q1 2021.
Construction of both jackets is proceeding alongside installation and testing of topside equipment including risers, helidecks, controls, communications and integrity management systems.
Transport and installation of the platforms at the field locations is planned for Q2 2021, in coordination with drilling operations.
Onshore tie-ins to LAPS facilities were completed during Q4 2020 Bacton terminal regular maintenance shutdown, and the gas sales tender process is being prepared.
The company now has in place specialist in-house discipline heads and expects to appoint a new COO following Marks Hughes’ retirement. The project is in the meantime being managed by Rupert Newall as interim project director.
Last year, IOG also adopted a new climate change and sustainability and social policy.
Chief executive Andrew Hockey said that in 2020 the company had made real progress in difficult conditions.
“IOG’s ambition is to be a safe, efficient, low-carbon intensity gas producer helping to provide reliable domestic energy supply as the UK transitions to net zero by 2050.
“We were pleased to adopt a new climate change and sustainability policy late last year and are initiating a comprehensive independent emissions certification process which we hope will confirm IOG’s low environmental impact business model.”
“We are also very encouraged by the significant gas market recovery, with UK NBP day-ahead prices reaching over 55p/therm and Winter-21 prices over 50p/therm last week – higher than at any point in 2020.”
COMPANY PROFILE
IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea.
In addition to the 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C contingent resources at Goddard, IOG also has best estimate gross unrisked prospective gas resources of 73 billions of cubic feet equivalent (bcfe)² at Goddard.
IOG also has management estimated mid-case recoverable gas volumes of 21 bcfe at Harvey.
In December 2020 IOG also accepted a 50% operated stake in licence P2589, containing the Panther and Grafton gas discoveries with management estimated 46 bcfe and 35 bcfe respectively.