IOG awards EPCI contract for Phase 1 platform of Core gas project

3 August 2020 (Last Updated August 3rd, 2020 15:13)

UK-based oil and gas company Independent Oil and Gas (IOG) has ordered two offshore platforms for its Core Project Phase 1 development to Dutch contractor HSM Offshore.

IOG awards EPCI contract for Phase 1 platform of Core gas project
IOG holds a 50% stake in the project, while CalEnergy Resources owns the remaining interest in the Core gas project. Credit: wasi1370 from Pixabay.

UK-based oil and gas company Independent Oil and Gas (IOG) has ordered two offshore platforms for its Core Project Phase 1 development to Dutch contractor HSM Offshore.

IOG awarded the engineering, procurement, construction and installation (EPCI) contract for two normally unmanned platforms for the IOG-operated Southwark and Blythe gas fields in the UK Southern North Sea (SNS).

The Core gas project involves the development of reserves across six gas fields located in the UK sector of the southern North Sea.

It is operated by IOG, which holds a 50% stake in the project while CalEnergy Resources owns the remaining interest in the project.

Phase one of the project comprises the development and production of the Southwark, Blythe, and Elgood gas fields, while phase two consists of the Goddard, Nailsworth, and Elland fields.

According to the IOG, the latest contract is almost ‘entirely lump-sum’ in nature.

IOG CEO Andrew Hockey said: “HSM are a highly respected offshore infrastructure fabricator with an extensive history of building platforms for both the Dutch and UK sectors of the North Sea and we are encouraged by the progress they have made to date, particularly in light of the challenges posed by Covid-19.

“These low-carbon-footprint facilities at Southwark and Blythe will be key infrastructure for the safe and effective execution of our gas hub strategy, not only for our SNS Core Project assets but also to enable valuable add-on developments.”

The project is being implemented in two phases. The final investment decision (FID) for the project was taken in October 2019 and the UK Oil and Gas Authorities (OGA) approved the field development plan for the first phase in May 2020.

HSM managing director Jaco Lemmerzaal said: “We are drawing on a wealth of platform engineering and construction experience and are making good progress towards the scheduled delivery date offshore in the first half of 2021.”

In January this year, IOG awarded the Phase 1 well management contract to Petrofac for its Core Project gas development in the North Sea.