Independent Oil & Gas signs 'Letter of Intent' with Offshore Design Engineering

Independent Oil and Gas has signed a 'Letter of Intent' with Offshore Design Engineering (ODE), for the provision of several key contractor roles for its Blythe Hub and Vulcan Satellites Hub development project by the latter, reflecting the company's continued strong progress with its gas portfolio.

According to the oil company on Tuesday, the letter required its "trusted partner", ODE, to provide technical and operational support "ahead of Final Investment Decision among other roles" with immediate effect, while contract terms were being finalised.

It was also expected to take responsibility for the operational management of all of Independent Oil's assets as well as for the Thames Pipeline and network of "in-field" pipelines, but with Independent maintaining 100% licence ownership and operation for all assets in the project.

That was in addition to it being "the Operations and Maintenance contractor upon first gas", hosting Independent Oil's onshore operational base at its facilities in Great Yarmouth, close to the Bacton terminal.

Significantly, ODE agreed to fully defer pre-FID costs and half of the pre-First Gas costs until First Gas.

Mark Routh, CEO and interim chairman of Independent Oil and Gas spoke of the benefits of working with the company.

"ODE has a wealth of relevant experience and manages several fields for other Operators in the Southern Gas Basin of the UK North Sea, so we will benefit from synergies with their existing operations. In line with our commercial model, the cost deferrals also tangibly improve IOG's funding position both before and after FID."