04 Feb 2013
Marketing and Offtake Agreement with BP Oil International Limited
Independent Oil and Gas Ltd ("IOG"), the North Sea focused Oil and Gas Company, is pleased to announce that it has entered into a long term agreement with BP Oil International Limited ("BPOI"), a wholly owned subsidiary of BP plc ("BP"), to market IOG's share of crude from the Skipper field. Under the agreement, BPOI is incentivised to maximise the sales price of the Skipper crude relative to Dated Brent. The agreement also sets out the terms under which BP would market crude from additional IOG developments.
In addition to these services, BPOI has also made a commitment to participate in a future debt facility for the development of the Skipper field. This will be subject to the same commercial terms as agreed with other parties at that time.
Commenting, Mark Routh, CEO of IOG, said:
BP is a great long term partner for IOG. Their commitment will help us to progress towards final appraisal and then bringing Skipper onstream. We also look forward to working with them on other assets in due course.
About Independent Oil & Gas:
IOG is an oil & gas company with established assets focused on the UK North Sea. The company’s strategy is to deliver near term development and production assets in North West Europe, through its extensive technical and commercial expertise, whilst maintaining some exposure to exploration upside. The Company is looking to grow both organically and through acquisition.
IOG has four licences in the North Sea: In addition to the Blythe and Skipper licences co-owned 50% with ATP UK, IOG has a 100% working interest in two licences awarded in the 27th licencing round. One is to the west of and adjacent to Skipper, the other is to the east of Blythe. Both these licences have potential resources that could be tied back to developments at Skipper and Blythe respectively.