UK-based Independent Oil and Gas (IOG) has been given an extension of its P1736 license in the UK North Sea which contains the Blythe gas discovery. The company expects to receive the approval for the field development plan by August 2018.
IOG said on Friday that the expiration date of the license was extended by 12 months and would end on December 31, 2018.
The previous extension of the license was agreed in December 2016 with an end date of December 31, 2017.
The Blythe gas field contains 33 billion cubic feet of 2P reserves and is a part of the combined Blythe and Vulcan Satellites hub developments.
The Field Development Plan (FDP) for Blythe was initially submitted in December 2016 and re-submitted in July 2017 as part of a joint development plan with IOG’s nearby Elgood discovery. The Blythe Hub is expected to provide the first gas for IOG in the middle of 2019 via the recommissioned Thames Pipeline.
The company added that the license extension was contingent upon a number of milestones agreed with the Oil and Gas Authority culminating in the submission of a final FDP that was capable of approval without further clarification, amendment or submissions by August 31, 2018.
Mark Routh, CEO and interim chairman of IOG, said: “Blythe is an important part of our combined Southern North Sea dual hub development and is anticipated to provide first gas from the whole portfolio.
“The license extension is welcomed and allows us to continue the significant planning and development work that is continuing within the company. We have confidence in reaching the agreed milestones.”