IOG.L Share News (IOG)

(Sharecast News) - UK gas and infrastructure operator IOG said on Monday that drilling operations had continued at its Southwark asset since the first development well was spudded on 30 December but cautioned that the Noble Hans Deul rig had experienced "an increasing challenge", with seabed conditions that could compromise rig stability.
IOG stated that technical personnel had explored potential options to manage the challenges. However, the rig owner has since concluded that, as "a prudent precautionary measure", the temporary re-location of the rig would be required to facilitate seabed remediation and enable the safe continuation of drilling operations.

The AIM-listed firm said the temporary relocation of the rig minimised the safety and integrity risks to personnel and assets, with the rig expected to remain offshore with non-essential crew and equipment demobilised while the issue can be rectified.

Chief executive Andrew Hockey said: "This is a frustrating but absolutely necessary step to ensure we can drill and complete the Southwark production wells in a fully safe manner, which is always our foremost priority. Our team is working around the clock with our drilling contractors Noble Corporation and Petrofac to minimise the interruption and resume the Southwark drilling programme at the earliest opportunity."

As of 0935 GMT, IOG shares were down 2.74% at 35.50p.