CATS Management Limited (CML) has signed a heads of terms with Premier Oil and Dana Petroleum to develop the infrastructure for the Tolmount field in the Southern North Sea.
CML and Dana Petroleum will jointly construct and own the Tolmount platform and export pipeline in equal shares, as well as undertaking the onshore modifications at the Dimlington terminal, that are required to enable Tolmount gas to be received and processed.
The work is estimated to cost US$182 million and is due to see the Tolmount field come on stream in 2020. Premier Oil first announced the deal last month, saying it would pay CML and Dana a yearly usage fee.
The Greater Tolmount Area, in Block 42/28d, has the potential to contain up to 1 Tcf, including the fully appraised Tolmount main structure of 540 Bcf and upside at Tolmount East and Tolmount Far East, which is estimated to hold 220 Bcf and 150 Bcf of unrisked gas resource, respectively, according to Premier.
The project is expected to be sanctioned during the first half of 2018 and is subject to final approval from the Boards of Premier Oil, Dana Petroleum and CML, as well as the UK's Oil and Gas Authority.