Independent Oil and Gas (IOG) has started discussions with potential floating production, storage and offloading (FPSO) vessel providers for its UK north Sea Skipper development.
The firm, which recently agreed to acquire 50% of the Skipper license from Alpha Petroleum, taking it to 100% ownership, is also hoping to secure long-term finance for the project by 15 August.
License P1609, containing Skipper, in Block 9/21a, in the northern North Sea, was awarded in 2009. According to a competent persons report by AGR Tracs from 2013, Skipper contains 26.2 MMbbl best estimate recoverable reserves. According to IOG, there are also two exploration prospects directly beneath Skipper, which could contain 46 MMbbl oil in place.
Earlier this month, IOG said an initial work program comprising drilling a well on the license mid-2016 had been proposed and was subject to a license extension, which currently expires on 30 September 2015. The Oil and Gas Authority would need to extend the license, subject to confirmation of funding for the well and a rig contract.
IOG said it was in advanced discussions with a party relating to a rig contract for the initial well and anticipated subsequent development wells on Skipper.
IOG has a memorandum of understanding agreement with AGR Well Management for project management and construction services.