IOG.L Share News (IOG)

(Sharecast News) - UK development and production company Independent Oil & Gas has awarded the core project phase one well management contract to Petrofac, it announced on Monday.
The AIM-traded firm said the award followed a competitive tendering process, and the approval last month of the phase one field development plan by the UK Oil and Gas Authority (OGA).

It said phase one would comprise the development and production of the Southwark, Blythe and Elgood fields in the UK Southern North Sea through a total of five wells, with gas transported onshore via the Thames Pipeline.

The contract scope covered the planning, execution and close-out phases of the phase one drilling programme, with Petrofac intended to act as well operator on behalf of IOG.

Petrofac had performed such a role for nine other companies in the UK North Sea, and had drilled more than 400 wells for over 100 operators globally.

The board said the planning phase included detailed well design, risk assessment and management of well-related regulatory requirements.

During the execution phase, Petrofac would manage well engineering, procurement and logistics, assure well construction and integrity, and provide onshore and offshore personnel to support the drilling campaign.

Extensive work had already been undertaken so far this year between the IOG and Petrofac teams under a letter of limited commitment, to ensure all preparations for the 2021-2022 phase one drilling campaign proceeded to plan.

"We are very pleased to have selected Petrofac as the well management contractor for phase one of our core UK Southern North Sea gas development," said chief executive officer Andrew Hockey.

"Petrofac have demonstrated that they have the right credentials and expertise to execute what will be a critical role in helping IOG to deliver a safe, productive and cost-effective five-well phase one drilling campaign kicking off in the first half of next year.

"The IOG drilling and subsurface teams have already established a strong working relationship with the Petrofac team in recent months and this will deepen further as phase one drilling preparations ramp up."

At 1427 BST, shares in Independent Oil & Gas were up 1.67% at 12.2p.