24 Feb 2014
Completion of Gas Sales Agreement with BP Gas Marketing LtdIndependent Oil and Gas plc (AIM:IOG.L) is pleased to announce that it has entered into a gas sales agreement with BP Gas Marketing Ltd, a wholly owned subsidiary of BP plc for its 50% share of the gas produced from the forthcoming Blythe gas field development in the Southern North Sea.
Blythe gas is expected to be sold at Bacton on a day ahead basis, which is standard for gas that meets normal system entry requirements.
The short term target for Blythe is to submit the Field Development Plan in Q3 this year. More details regarding the development schedule will follow in due course.
Mark Routh, CEO of IOG said:
This agreement is another important step on the road to first gas from Blythe and also builds upon our excellent relationship with BP as already demonstrated by the long term crude oil marketing and offtake agreement already in place for the Skipper field with BP Oil International Limited, which includes a commitment to a Skipper debt facility.
Chris Schemers, Head of Origination, BP Gas Marketing Limited said:
As a North Sea producer BP understands the challenges faced by explorers and producers in getting their gas to market. We’re pleased that many independent producers choose us to flow their gas into Europe and the UK.
About Independent Oil & Gas:
IOG is an oil & gas company with established assets focused on the UK North Sea. The company’s strategy is to deliver near term development and production assets in North West Europe, through its extensive technical and commercial expertise, whilst maintaining some exposure to exploration upside. The Company is looking to grow both organically and through acquisition.
IOG has four licences in the North Sea: In addition to the Blythe and Skipper licences co-owned 50% with ATP UK, IOG has a 100% working interest in two licences awarded in the 27th licencing round. One is to the west of and adjacent to Skipper, the other is to the east of Blythe. Both these licences have potential resources that could be tied back to developments at Skipper and Blythe respectively.