LOI signed with Key Contractor ODE

RNS Number : 8810T

Independent Oil & Gas PLC

18 October 2017

 

18 October 2017

Independent Oil and Gas plc

LOI signed with Key Contractor ODE

Independent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to announce that it has signed a Letter of Intent ("LOI") with Offshore Design Engineering Limited ("ODE") to perform several key contractor roles for its Blythe Hub and Vulcan Satellites Hub development ("the Project"), starting with technical and operational support ahead of Final Investment Decision ("FID").

Highlights:

·     ODE to provide extensive technical and operational support to IOG in both pre- and post-FID stages to deliver the Project into production

·      ODE to be the Operations & Maintenance service provider

·      Pre-FID costs to be fully deferred and pre-First Gas costs to be 50% deferred until first gas, thereby reducing IOG's funding requirements

·     LOI further strengthens IOG commercial model with ODE as a key contractor incentivised to deliver first-rate performance

ODE will be responsible for the operational management of all IOG's assets and for the Thames Pipeline and network of in-field pipelines, with IOG continuing to be 100% Licence Owner and Operator for all assets in the Project.  It is also intended that ODE will be the Operations and Maintenance contractor upon first gas, hosting IOG's onshore operational base at its facilities in Great Yarmouth, close to the Bacton terminal.  The pre-FID technical and operational support work is due to start immediately while contract terms are being finalised.

Mark Routh, CEO and Interim Chairman of IOG commented:

"We are very pleased to be working with ODE who will be a trusted partner in IOG's Blythe Hub and Vulcans Satellites Hub development.  ODE has a wealth of relevant experience and manages several fields for other Operators in the Southern Gas Basin of the UK North Sea, so we will benefit from synergies with their existing operations.  In line with our commercial model, the cost deferrals also tangibly improve IOG's funding position both before and after FID.

This LOI reflects the team's continued strong progress with the IOG gas portfolio.  We look forward to finalising the contract with ODE and agreeing similar terms with other key contractors to continue delivering our gas hub strategy."

ENDS-

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

Enquiries:

Independent Oil and Gas plc Mark Routh (CEO) James Chance (CFO)	[phone]
finnCap Ltd Christopher Raggett / Anthony Adams (Corporate Finance)	[phone]
Camarco Georgia Edmonds / Tom Huddart / Monique Perks	[phone]

Notes

About Independent Oil and Gas:

IOG owns substantial low risk, high value gas resources in the UK Southern North Sea.  The Company is targeting a 2P production rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial current portfolio via an efficient gas hub strategy.  Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns.  All of IOG's licences are owned 100% and operated by IOG.

Further information can be found on www.independentoilandgas.com

About ODE

ODE (Offshore Design Engineering Limited) is an international technical service provider to the oil, gas and renewable energy markets.  ODE provides comprehensive consulting, engineering, asset management, procurement, project management operations support and late life operations services to the oil, gas and renewable energy sectors.

ODE's head office is in Wimbledon, London, from where it undertakes consultancy and engineering for oil and gas projects, including decommissioning. Wimbledon also takes the lead on marine renewables and continues to build on the company's 16-year record in the sector.  ODE also has a significant presence in Great Yarmouth from where it provides brownfield engineering and asset management services.  Internationally, ODE has engineering and project management offices in Egypt focusing on both off and onshore oil and gas, and representation in the United States and Taiwan for marine renewables.

Further information can be found on www.ode-ltd.co.uk

 

END

 

 

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