Completion of Thames Pipeline Acquisition and Operational Update
Tuesday 17 April 2018
Independent Oil and Gas plc, the development and production focused Oil and Gas Company, announced that it has now completed the acquisition of the Thames pipeline.
Pipeline Acquisition
- Pipeline acquired from Perenco UK Limited, Tullow Oil SK Limited and Spirit Energy Resources Limited.
- Recommissioning of the pipeline is an essential part of the development of the Blythe and Vulcan Satellite hubs, allowing gas export to the Bacton Terminal.
- Increasingly important part of Southern North Sea infrastructure, particularly given the closure of other pipeline systems.
- IOG is now the approved operator of the Thames Pipeline which it owns 100%.
- Peak production from the Blythe and Vulcan Satellite hubs is expected to be 180 million cubic feet per day ("MMcfd") and opportunities for additional gas are being considered.
- Ahead of first gas, the Company intends to acquire the onshore reception facilities at the Perenco Bacton terminal. A period of exclusivity has been agreed until the end of September 2018.
Pipeline Operational Update
- The Intelligent Pigging Programme (“IPP”) is underway with onshore mechanical preparation work at Bacton.
- Offshore Site survey along the Thames Pipeline and survey of all proposed platform locations and intra field connecting pipelines is nearing completion.
- The intention of the IPP is to confirm the feasibility of safe reuse of the pipeline, which is estimated to have initial capacity of 300 MMcfd. Initial results of the IPP expected early May.
- Positive initial site survey results suggest a modified proposed tie in point for the Thames Pipeline which should reduce time and cost both for the pigging operations and subsequent tie back to the planned Southwark platform.