UK Regulator Approves Independent Oil & Gas Project Development Plan

Independent Oil & Gas on Friday said the UK Oil & Gas Authority has approved the Core project phase 1 field development plan. The Company also provides a comprehensive project and corporate update.

The AIM-listed development & production company said, with approval in place, a full engineering, procurement and construction contract is expected to be signed with the platform contractor in the near future.

At the platform fabrication yard, a two-shift system is in place to optimise Covid-19 restricted working conditions and ensure work progresses as planned, Independent Oil & Gas said.

Elsewhere, progress continues with the major long lead subsea and pipeline items, the company noted. The 24-inch and 12-inch line pipe have now been manufactured and delivered from Greece to the UK for storage prior to loading onto the pipelay vessels in the summer.

Also, Independent Oil & Gas said planning and preparation continue for the offshore pipelay programme in the second half of 2020. The pipeline works authorisation applications for laying the 24-inch and 12-inch extensions to the Thames pipeline have been submitted and formally accepted for review by the UK Oil & Gas Authority.

Finally, the company said front-end engineering & design studies on the the Thames reception facilities refurbishment at Bacton gas terminal are ongoing, with good co-operation between the UK Oil & Gas Authority, Bacton operator Perenco UK Ltd and the engineering contractor Worley.

Tendering and planning activities are also being progressed for the environmental, geo-technical and other surveys required at the Thames reception facilities site. Initial preparatory works at the Thames reception facilities are expected to commence in May.

"We are very pleased to have received this milestone approval for our core UK gas project. Such government endorsement brings a welcome boost to the UK offshore industry and supply chain given the current environment," said Chief Executive Andrew Hockey.

"As phase 1 execution ramps up, we have avoided any schedule impact to date from Covid-19 and are also targeting cost savings even more proactively to help deliver our project on time and budget," added Hockey.

Independent Oil & Gas shares closed 0.9% lower in London on Friday at 11.79 pence each.

Source: Alliance News

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