UK independent IOG is hoping to deliver first gas from its first two Southern Basin projects, Blythe and Elwood, by year end, when it hopes to start capitalising on the “exceptionally strong” gas price, CEO Andrew Hockey said in a November 22 operational update. “Forward pricing remains substantially above the company’s planning case, although volatility also remains high,” the statement said.
Preparatory discussions are underway with relevant parties to start implementing a prudent, systematic gas hedging strategy by the end of Q1 2022. The company’s strategy also benefits from a “timely new low carbon intensity.”
The offshore subsea and hook-up scopes for the Blythe and Elgood fields are complete and the company is working closely with Bacton terminal operator Perenco and an enlarged workforce to complete the reception facilities recommissioning.
Separately, the Noble Hans Deul rig has been repaired and, subject to recertification for safe operations, is preparing to reach the Southwark field in early December. First gas is still on track for Q2 2022.
Planning and contracting is underway for the two 2022 appraisal wells at Kelham North/Kelham Central (P2442: Block 53/1b) and Goddard (P2342: Block 48/11c and 12b) respectively.
IOG said it had exercised its contract option to drill these wells in succession with the Noble Hans Deul after the second Southwark well and at the same “competitive” day rates as were agreed for Phase 1.
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