Independent Oil and Gas (IOG) confirmed it has submitted its field development plans (FID) for its Vulcan Satellites hub development to the Oil and Gas Authority (OGA).
The bid comes just one year after IOG snapped up the interest from Oyster Petroleum for a cut-price deal, totalling $5million.
The Vulcan Satellites FDP covers the three 100%-owned and operated Southern North Sea gas fields recently officially renamed as Southwark, Nailsworth and Elland. The three Vulcan Satellites fields are to be jointly developed with IOG’s Blythe hub, for which the FDP was submitted in July 2017. Gas from both hubs is planned to be exported via the recommissioned Thames Pipeline which IOG will also own 100%.
First gas is being targeted for the second quarter of 2019.
Chief executive Mark Routh said: “It is one year since we concluded the acquisition of the Vulcan Satellites at a very compelling price. Since then, the IOG team has completed extensive work across the portfolio on the seismic reinterpretation, geophysical modelling, dynamic reservoir modelling, development planning and optimal well design and placement in order to deliver this FDP.
“The alignment of contractors to deliver both the Vulcan Satellites and Blythe gas hubs reflects a new spirit of North Sea collaboration and dovetails with the OGA’s Maximising Economic Recovery initiative. We look forward to updating all stakeholders on further progress towards project Final Investment Decision early in 2018.”
Life-of-hub gross revenues expected to exceed £1billion based on forward gas prices.
The Vulcan Satellites hub development has 2P reserves of 248 BCF (44 million barrels of oil equivalent), alongside the Blythe Hub (Blythe and Elgood 2P reserves of 55 BCF). Peak 2P production from the Vulcan Satellites hub targeted in excess of 150 MMcfd from a total of eight development wells.
IOG is targeting a Final Investment Decision (FID) for end of the first quarter of 2018.
An IOG spokesperson added: “IOG has so far announced several contractors for the delivery of the Vulcan Satellites FDP, including Schlumberger, Heerema and ODE, subject to contract.
“The contractor deferral model continues to be employed by IOG to align all parties to the successful development of the project and to reduce upfront funding requirements. Discussions with rig owners, subsea & pipeline contractors and gas off-takers for the Vulcan Satellites are at an advanced stage.”
IOG is targeting a 2P peak production rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial current portfolio via an efficient hub strategy. Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns. All of IOG’s licences are owned 100% and operated by IOG.