IOG Awards Platform Contract for North Sea Gas Project
Independent Oil and Gas (IOG) and its partner CalEnergy Resources have hired Dutch contractor HSM Offshore to build platforms for the first phase of their multi-field gas project in the southern North Sea, IOG said on August 3.
HSM has received an engineering, procurement, construction and installation (EPCI) contract for two normally unmanned platforms that will be positioned at the Southwark and Blythe gas fields. IOG said it had been working with the contractor on a pre-contractual basis since late 2019, to ensure that the platforms are built on time at a yard in Schiedam in the Netherlands.
Offshore installation is slated to take place in the first half of 2021.
"These low carbon footprint facilities at Southwark and Blythe will be key infrastructure for the safe and effective executive of our gas hub strategy, not only for our southern North Sea core project assets but also to enable valuable add-on developments, IOG CEO Andrey Hockey said in a statement.
IOG sanctioned the project's first phase in October. It is targeting the Southwark, Blythe and Elgood gas fields, with production scheduled to start in July 2021. CalEnergy Resources, a subsidiary of Berkshire Hathaway, farmed in for a 50% stake last year.
The project's second phase will develop the Goddard, Nailsworth and Elland fields, also in the southern North Sea, although a final investment decision is not yet in place. Combined, the two phases aim to recover 11.6bn m3 of gas.