Independent Oil and Gas (IOG), the North Sea focused oil and gas company, has been granted an extension for the Skipper Licence P1609 Block 9/21a, in the UK North Sea, until the end of 2016.
Following discussions with the Oil & Gas Authority (OGA), the UK’s oil and gas regulator, the licence was formally extended until December 31, 2016.
“IOG intends to drill the appraisal well as soon as economic conditions allow,” the company said on Thursday.
To remind, IOG initially planned to drilled the appraisal well on the Skipper licence in late January or early February 2016. The company even hired Transocean’s John Shaw semi-submersible rig to drill the North Sea well. The drilling was supposed to last for 25 days.
However, the Skipper appraisal well was recently delayed due to oil price movements and bad weather in the North Sea.
Mark Routh CEO of IOG commented:
“In the context of this very severe oil price downturn, we are grateful for the OGA’s pragmatic and supportive stance in extending the Skipper licence which we anticipate will enable us to drill the appraisal well later in 2016.
“Constructive dialogue with the various contractors and funders are progressing well and we anticipate confirming that arrangements remain in place for a rapid resumption of the well drilling process once it makes economic sense to proceed.”
Offshore Energy Today Staff