Independent Oil and Gas plc, the development and production company focused on becoming a substantial UK gas producer, as operator of its joint venture with CalEnergy Resources (UK) Ltd, is pleased to announce that it has awarded a sizeable Engineering, Procurement, Construction and Installation (EPCI) contract to Subsea 7 S.A.. The contract will cover the Subsea, Umbilicals, Risers and Flowlines (SURF) work on Phase 1 of its Core Project in the UK Southern North Sea (SNS) and is almost entirely lump-sum in nature. Confirmation of this award follows a competitive tendering process and the recent approval of the Phase 1 Field Development Plan (FDP) by the UK Oil and Gas Authority (OGA).
Phase 1 comprises the development and production of the Southwark, Blythe and Elgood fields through a total of five wells with gas transported onshore via the Thames Pipeline. The SURF contract incorporates project management, engineering, procurement, construction and installation activities for the subsea elements of Phase 1. These include a 6km 24-inch extension to the Thames Pipeline to the Southwark platform, a 25km 12-inch line connecting the Blythe platform to the Thames Pipeline, and a 9km 6-inch pipeline and an umbilical connecting the Elgood field to the Blythe platform, and associated subsea structures and tie-ins. A Phase 1 subsea development schematic can be viewed on IOG's website at www.iog.co.uk/assets/core-project-phase-1/.
Extensive progress has already been made with Subsea 7 prior to final contract award under a letter of limited commitment to ensure that all workstreams have commenced and continued on schedule since FID in October 2019 in anticipation of the FDP approval. As recently announced, the 24-inch (Southwark) and 12-inch (Blythe) line pipe have been manufactured and transported to the UK ahead of planned installation scheduled in 2H 2020, and Subsea 7 is progressing detailed engineering work in support of this campaign.
Andrew Hockey, CEO of IOG, commented:
"We are pleased to be working with Subsea 7, a globally recognised leader in offshore energy services, for the SURF scope of Phase 1 of our core UK SNS gas development. They will be an important contractor for IOG in ensuring safe and efficient Phase 1 execution, which includes the offshore pipelay campaign being prepared for the second half of this year. We have already been working with Subsea 7 for several months under a pre-contractual arrangement and with the contract now finalised we look forward to further developing our constructive relationship."
Jonathan Tame, Vice President UK & Canada, Subsea 7, said:
"We are pleased to be awarded this contract, which strengthens our reputation as a global provider of value-driven SURF solutions. We look forward to collaborating with IOG to ensure the cost-effective, safe and timely execution of each phase of the development."