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ODE to support Vulcan Satellites development, from FEED to O&M

OE Staff Wednesday, 18 October 2017 06:28

North Sea minnow Independent Oil and Gas has signed a letter of intent with Offshore Design Engineering for work on its Blythe Hub and Vulcan Satellites Hub development.

ODE will provide technical and operational support ahead of final investment decision (FID) on the project and then work on the project through to operations and maintenance. 

The Vulcan Satellites Hub development will see up to four normally unmanned platforms connected to an existing pipeline, which had been decommissionined, but it due to be recommissioned. 

Earlier this month, IOG signed a letter of intent with Heerema Fabrication Group for front-end engineering and design (FEED), and engineering procurement, construction and installation (EPCI) of up to four normally unmanned installation platforms (NUIs).

Last month, the firm signed a letter of intent and consultancy master services agreement (CMSA) with Schlumberger.

The agreement with ODE will see the firm: 

  • provide extensive technical and operational support to IOG in both pre- and post-FID stages to deliver the Project into production
  • be the Operations & Maintenance service provider

Similar to the agreement with Heerema, pre-FID costs to be fully deferred and pre-first Gas costs to be 50% deferred until first gas, thereby reducing IOG's funding requirements.

ODE will be responsible for the operational management of all IOG's assets and for the Thames Pipeline and network of in-field pipelines, with IOG continuing to be 100% license owner and operator for all assets in the project. 

It is also intended that ODE will be the operations and maintenance contractor upon first gas, hosting IOG's onshore operational base at its facilities in Great Yarmouth, close to the Bacton terminal.  The pre-FID technical and operational support work is due to start immediately while contract terms are being finalized.

Mark Routh, CEO and Interim Chairman of IOG said: "In line with our commercial model, the cost deferrals also tangibly improve IOG's funding position both before and after FID. We look forward to finalising the contract with ODE and agreeing similar terms with other key contractors to continue delivering our gas hub strategy."

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2018-10-24 01:45:02am