(Alliance News) - London-based IOG PLC said on Monday its Blythe and Elgood fields and Sotuhwark project remain on schedule despite Covid-19 related challenges and is looking to "capitalise on very strong gas prices."
The gas production company said the challenges offshore and onshore at Blythe and Elgood it continues to target delivery of first gas by the end of the fourth quarter 2021.
Analysis of the early months of production from Blythe and Elgood will also help to estimate production guidance for 2022.
The previously-delayed Noble Hans Deul rig is now expected to move to Southwark in early December once it has been re-certified for safe operation, with Southwark first gas on track for the second quarter of 2022.
IOG stated that planning and contracting for the 2022 appraisal wells at Kelham North/Kelham Central and Goddard is underway.
The company adds further that concept select work on Nailsworth is progressing, with a view to accelerate front engineering and design, as well as taking a final investment decision in the first quarter of 2022. P2589 seismic reprocessing is also starting shortly and is expected to be completed mid-2022.
IOG noted that the UK's National Balancing Point benchmark has been "exceptionally" high in 2021 and that forward pricing remains substantially above the company's planning case.
"Preparatory discussions are underway with relevant parties to start implementing a prudent, systematic gas hedging strategy by the end of the first quarter of 2022," IOG declared.
Chief Executive of IOG Andrew Hockey commented: "Phase 1 looks set to capitalise on very strong gas prices whilst also providing timely new low carbon intensity UK domestic gas production."
Shares in IOG were down 4.4% at 28.44 pence each on Monday in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
