IOG signs deal with Heerema to develop four North Sea platforms
Independent Oil and Gas (IOG) has signed a letter of intent (LoI) with Heerema Fabrication Group to construct up to four normally unmanned installation (NUIs) platforms in the North Sea's southern region.
The LoI has been signed for front-end engineering and design (FEED) and engineering, procurement, construction and installation (EPCI) of the platforms, which will be used for IOG’s Southern North Sea (SNS) gas project.
The gas project comprises the Blythe Hub and Vulcan Satellites Hub developments.
Based on the LoI, both companies are expected to sign the full contract before the end of this year.
IOG CEO and interim chairman Mark Routh said: "Heerema is 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."
IOG stated that the FEED costs will be completely deferred, while the EPCI costs will be 50% deferred, which significantly reduces the company’s funding requirements for the SNS project.
The FEED work is said to be an important step before reaching final investment decision (FID) on the SNS gas project, scheduled by the end of the first quarter of next year.
Last month, IOG signed a LoI and consultancy master services agreement (CMSA) with Schlumberger for the development of Blythe Hub and the Vulcan Satellites Hub.
Under the deal, Schlumberger will help IOG in the development of these two southern North Sea gas hubs up to FID.
Both companies will form a joint team to carry out the field development and execution plans.