Phase 1 Duty Holder and Operations Contract Award

Source Press Release
Company IOG plcDana PetroleumHumber Oil & Gas LimitedNEO Energy 
Tags Strategy - Corporate
Date May 17, 2021

IOG plc ("IOG", or "the Company"), (AIM:  IOG.L), the UK gas company targeting growth and high returns via an infrastructure-led hub strategy, is pleased to announce that, as operator of its joint venture (JV) with CalEnergy Resources (UK) Limited (CER), it has awarded the Phase 1 Duty Holder contract for Installation and Pipeline Operator, as well as facilities operations and maintenance (O&M), to ODE Asset Management (ODE AM).

Working closely with IOG's in-house operations team, ODE AM will be responsible for delivering safe, efficient and cost-effective production operations from the JV's Phase 1 offshore infrastructure in the UK Southern North Sea (SNS), including the Blythe and Southwark platforms, the Thames Pipeline and the associated subsea connector lines.

ODE AM will also provide O&M and integrated services for Phase 1, including the onshore control room at the Bacton Gas Terminal, travel, training and crew for offshore activities, emergency response, warehousing and quayside support, and all associated regulatory interface and compliance. The contract has mechanisms to incentivise ODE AM to maximise operating efficiencies and an appropriate risk-reward formula for performance against agreed criteria.

ODE AM has an extensive SNS track record, including as Duty Holder for the Tolmount gas platform on behalf of Humber Gathering System Limited (the Kellas Midstream and Dana Petroleum JV) and Installation and Pipeline Operator for the producing Babbage gas field on behalf of  NEO Energy.

This award further cements a relationship that started in early 2018 with ODE AM's appointment as Pipeline Operator for the Thames Pipeline (PL370), since when it has provided pre-operations services on a reimbursable basis. The wider ODE Group is also undertaking engineering, procurement, construction and installation activities for the ongoing recommissioning of the JV's onshore Thames Reception Facilities at Bacton.

Andrew Hockey, CEO of IOG, commented: 

"We are pleased to award this contract to ODE AM, who have a well-established Duty Holder and O&M track record in Southern North Sea gas projects including Babbage and Tolmount. Their focus on safe, efficient and cost-effective operations will be integral to our low opex and low carbon intensity production model. We look forward to continuing our collaboration with ODE AM as we ramp up pre-operations and commissioning activities ahead of First Gas in late Q3 this year."

Sandy Reid, Managing Director of ODE AM, said:"

We're delighted to continue our support to IOG on their prestigious Core Project and be appointed Duty Holder for the Blythe and Southwark offshore facilities. This contract fully aligns and incentivises ODE AM to support  IOG in what both parties see as an operating partnership to deliver industry leading lifting cost and low carbon performance. We're proud that  IOG are placing their trust in the wider capabilities of the ODE Group to safely deliver both the Bacton EPCI and the offshore Duty Holder scopes."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd