Offshore staff
LONDON – Independent Oil and Gas (IOG) has clinched a gas sales agreement for its development projects in the UK southern North Sea with Gazprom Marketing & Trading (GM&T).
It follows a competitive offtake process involving more than 10 bidders over recent months.
GM&T is the London-based energy marketing and trading subsidiary of Gazprom. The company is said to have been active in the UK gas market for over two decades with around 900 employees in London and eight other international offices.
The GSA covers IOG’s equity production for the first two years from the Elgood and Southwark fields (part of the Phase 1 development) and the Nailsworth and Elland fields (part of the Phase 2 development), with a mutual extension option.
Production is due to start this fall.
Gas will be sold at a price linked to the National Balancing Point, the UK traded gas benchmark. In 2014 IOG signed a separate gas sales agreement with BP Gas Marketing for Blythe, the other Phase 1 field.
Andrew Hockey, CEO of IOG, noted the recent strengthening of the UK gas market, with forward pricing for the six-month winter 2021 gas period closing yesterday at over 101 pence per therm - 96% ahead of the company’s central planning case for that period.
07/29/2021
