18 Oct 2017
LOI signed with Key Contractor ODEIndependent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to announce that it has signed a Letter of Intent ("LOI") with Offshore Design Engineering Limited ("ODE") to perform several key contractor roles for its Blythe Hub and Vulcan Satellites Hub development ("the Project"), starting with technical and operational support ahead of Final Investment Decision ("FID").
- ODE to provide extensive technical and operational support to IOG in both pre- and post-FID stages to deliver the Project into production
- ODE to be the Operations & Maintenance service provider
- Pre-FID costs to be fully deferred and pre-First Gas costs to be 50% deferred until first gas, thereby reducing IOG's funding requirements
- LOI further strengthens IOG commercial model with ODE as a key contractor incentivised to deliver first-rate performance
Mark Routh, CEO and Interim Chairman of IOG commented:
We are very pleased to be working with ODE who will be a trusted partner in IOG's Blythe Hub and Vulcans Satellites Hub development. ODE has a wealth of relevant experience and manages several fields for other Operators in the Southern Gas Basin of the UK North Sea, so we will benefit from synergies with their existing operations. In line with our commercial model, the cost deferrals also tangibly improve IOG's funding position both before and after FID.
This LOI reflects the team's continued strong progress with the IOG gas portfolio. We look forward to finalising the contract with ODE and agreeing similar terms with other key contractors to continue delivering our gas hub strategy.
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas resources in the UK Southern North Sea. The Company is targeting a 2P production rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial current portfolio via an efficient gas 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.
Further information can be found on www.independentoilandgas.com
ODE (Offshore Design Engineering Limited) is an international technical service provider to the oil, gas and renewable energy markets. ODE provides comprehensive consulting, engineering, asset management, procurement, project management operations support and late life operations services to the oil, gas and renewable energy sectors.
ODE's head office is in Wimbledon, London, from where it undertakes consultancy and engineering for oil and gas projects, including decommissioning. Wimbledon also takes the lead on marine renewables and continues to build on the company's 16-year record in the sector. ODE also has a significant presence in Great Yarmouth from where it provides brownfield engineering and asset management services. Internationally, ODE has engineering and project management offices in Egypt focusing on both off and onshore oil and gas, and representation in the United States and Taiwan for marine renewables.
Further information can be found on www.ode-ltd.co.uk