UK-based Independent Oil and Gas (IOG) has submitted the Field Development Plan (FDP) for the Vulcan Satellites hub development in the Southern North Sea to the UK Oil and Gas Authority (OGA).
The Vulcan Satellites FDP covers the three 100%-owned and operated Southern North Sea gas fields recently officially renamed as Southwark, Nailsworth and Elland.
IOG said on Tuesday that the three Vulcan Satellites fields are to be jointly developed with the company’s Blythe hub, for which the FDP was submitted in July 2017. Gas from both hubs is planned to be exported via the recommissioned Thames Pipeline which IOG will also own 100%.
According to the company, first gas is targeted by the end of 2Q 2019 alongside first gas from the Blythe hub. The plan is for the 2P reserves of 248 BCF (44 MMBOE) to be developed at the Vulcan Satellites, alongside the Blythe Hub (Blythe and Elgood 2P reserves of 55 BCF), and subject to a successful appraisal well, the Harvey field.
Peak 2P production from the Vulcan Satellites hub targeted in excess of 150 MMcfd from a total of eight development wells. Life-of-hub gross revenues expected to exceed £1bn based on forward gas prices. IOG added that the Final Investment Decision (FID) is targeted for the end of 1Q 2018.
IOG has so far announced several contractors for the delivery of the Vulcan Satellites FDP, including Schlumberger, Heerema and ODE, subject to contract.
Back in September, Schlumberger was chosen to assist IOG in the period before the FID where a jointly established team would work to complete the field development and execution plans.
In early October, 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) for IOG’s Southern North Sea gas project.
Later in October, IOG signed a letter of intent with Offshore Design Engineering (ODE) to perform work on the Blythe Hub and Vulcan Satellites Hub development.
The contractor deferral model continues to be employed by IOG to align all parties to the successful development of the project and to reduce upfront funding requirements. The company said that discussions with rig owners, subsea & pipeline contractors and gas off-takers for the Vulcan Satellites are at an advanced stage.
Mark Routh, CEO and Interim Chairman of IOG commented: “It is one year since we concluded the acquisition of the Vulcan Satellites at a very compelling price. Since then, the IOG team has completed extensive work across the portfolio on the seismic reinterpretation, geophysical modelling, dynamic reservoir modelling, development planning and optimal well design and placement in order to deliver this FDP.