Independent O&G: Heerema initials 4 Southern North Sea platforms deal
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”).
- 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.