London-based Independent Oil & Gas Plc (IOG) aims to take a final investment decision (FID) on its southern North Sea Core project in early September, according to a news release from the company.
IOG said Aug. 14 that it is in the process of retendering some contracts and preparing to recommend final awards, with formal awards expected shortly after FID.
FID would be taken after completion of a farm-out and bond, proposed for £88 million (US$106 million).
The Core project includes the Vulcan Satellites Hub, which comprises the Southwark, Nailsworth and Elland gas fields; Blythe Hub, which comprises the Blythe and Elgood gas fields; and Goddard Field.
The five- to seven-well Phase 1 includes development of the Southwark, Blythe and Elgood as well as Harvey, if successful. The seven- to eight-well Phase 2 includes development of the Nailsworth and Elland fields plus Goddard contingent resources.
“The drilling and completion of the Elgood subsea well will be accelerated to bring Blythe and Elgood production online simultaneously three months after Southwark,” IOG said in the release. “This will entail higher capex spend prior to Phase 1 first gas, but will increase production over winter 2021 given relatively high forecast initial rates from Blythe and Elgood, thereby improving cash flows.
“In the U.K. gas market, winter months typically exhibit substantially higher gas pricing than summer months,” the company added.
If all goes as planned, first gas is expected in July 2021 from the Southwark Field.
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