Offshore staff
LONDON – IOG has arranged a new gas sales agreement with BP Gas Marketing.
This covers IOG’s equity gas from the Phase 1 fields for the Saturn Banks project in the UK southern North Sea (Blythe, Elgood, Southwark), plus the Phase 2 Nailsworth and Elland fields, on a long-term basis with break clauses after September 2023.
This replaces the gas sales agreement originally signed with BP in February 2014, which covered the Blythe field only.
Gas will be sold on a day-ahead daily nomination basis at a price linked to the UK’s National Balancing Point, with potential for physical gas hedging up to 50% of forecast production over various periods.
IOG was obliged to seek a new buyer for the Southwark/Elgood gas after cancelling a sakes agreement it had negotiated last year with Gazprom Marketing & Trading.
The company added that it has made progress with the required regulatory and commercial processes to implement a rock dumping solution to address the seabed scour issue at the Southwark field location.
This would allow drilling to hopefully resume later this month, although logistical/tidal issues could push the re-start back to mid-April.
Southwark in that case would probably flow first gas in Q3 2022.
3/12/2022
