25 Sep 2017
Letter of Intent and Consultancy Master Services Agreement signed with Schlumberger on Southern North Sea Development ProjectIndependent 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”) and Consultancy Master Services Agreement (“CMSA”) with Schlumberger in relation to development of its two Southern North Sea gas hubs, the Blythe Hub and the Vulcan Satellites Hub.
The CMSA provides a framework for Schlumberger to assist IOG in the period prior to Final Investment Decision (FID) on the SNS development project. A jointly established team will work to complete the Field Development and Execution plans.
Mark Routh, CEO and Interim Chairman of IOG commented:
“We are delighted to attract a major contractor of the calibre of Schlumberger to the project, which is further vindication of our dual gas hub development strategy. The range of services and deep technical expertise provided by Schlumberger will be very valuable for us both in the pre-development phase and the drilling and operational phases of the project. We look forward to finalising terms with Schlumberger and other key contractors in the coming months. Our commercial model aligns the incentives of all project participants towards the efficient delivery of IOG’s substantial gas resources.
Discussions with potential gas offtakers also continue to progress well and it is envisaged that these arrangements will include gas prepayments which would also contribute significantly to our development funding. We look forward to making further updates in due course.”
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas resources in the UK Southern North Sea. The Company is targeting 170 MMcfd gas production from its current portfolio of 500 BCF (88 MMBoe) via an efficient gas hub strategy. Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns. All of IOG's licences are owned 100% and operated by IOG.
Further information can be found on www.independentoilandgas.com