Independent Oil & Gas PLC Letter of Intent Signed (4839S)
03 October 2017 - 5:00PM
UK Regulatory
TIDMIOG
RNS Number : 4839S
Independent Oil & Gas PLC
03 October 2017
3 October 2017
Independent Oil and Gas plc
Letter of Intent signed for up to four Southern North Sea
platforms
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
Heerema Fabrication Group. ("Heerema") for Front End Engineering
and Design ("FEED") and Engineering, Procurement, Construction and
Installation ("EPCI") of up to four Normally Unmanned Installation
platforms ("NUIs").
Highlights:
-- The NUIs will be utilised for IOG's Southern North Sea (SNS)
gas project, which consists of the Blythe Hub and Vulcan Satellites
Hub developments.
-- FEED costs will be fully deferred and EPCI costs are to be 50% deferred.
-- The LOI is a further demonstration of our commercial model
aligning the incentives of all project partners.
The FEED work is a key step towards reaching Final Investment
Decision ("FID") on the SNS gas project, which is targeted by the
end of the first quarter of 2018. The LOI is to be followed by a
full contract covering both FEED and EPCI, which is expected to be
signed before year end.
The intention is that FEED costs are to be fully deferred and
EPCI costs are to be 50% deferred until First Gas from the SNS gas
project. This would significantly reduce IOG's funding requirements
for the project.
Mark Routh, CEO and Interim Chairman of IOG commented:
"We are very pleased to be working with Heerema on the platforms
for our Southern North Sea developments. This LOI reflects the
strong operational progress the team continues to make delivering
on our strategy. Heerema are a very experienced and accomplished
platform fabricator and FEED will start immediately with a view to
adapting an established UK Southern North Sea design previously
built by Heerema. Efficient platform fabrication and installation
will be critical to the successful and timely development of our
two gas hubs, and Heerema represents the best technical and
commercial solution to achieve this.
Our commercial model aligns the incentives of all project
participants towards the efficient delivery of IOG's substantial
gas resources and the intended cost deferral will contribute
significantly to funding the portfolio into production. We look
forward to finalising the contract with Heerema and agreeing
similar terms with other key contractors to continue implementing
our gas hub strategy for the undersupplied UK market."
-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 +44 (0) 20 3879
Mark Routh (CEO) 0510
finnCap Ltd
Christopher Raggett / Anthony
Adams +44 (0) 20 7220
(Corporate Finance) 0500
Camarco +44 (0) 20 3757
Georgia Edmonds / Tom Huddart 4980
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 170 MMcfd gas
production from its substantial current portfolio via an efficient
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 Heerema Fabrication Group:
Heerema Fabrication Group (HFG) specializes in the engineering
and fabrication of large and complex structures for the offshore
oil & gas and energy-related industries. Recent examples
include Clipper South, Ensign, Babbage and Breagh Alpha. More
information can be found at: https://hfg.heerema.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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