Heerema Initials 4 North Sea Platform Deal
Dutch contractor Heerema has signed a letter of intent for up to four southern North Sea gas platforms.
UK North Sea gas fields developer Independent Oil and Gas said October 3 it signed a letter of intent with Heerema Fabrication Group (HFG) for front end engineering and design (Feed) and engineering, procurement, construction and installation (EPCI) of up to four normally unmanned platforms.
They would be used for IOG's gas project consisting of the Blythe Hub and Vulcan Satellites Hub developments. IOG said that its Feed costs will be fully deferred and EPCI costs are to be 50% deferred. It said the letter of intent was "a further demonstration of our commercial model aligning the incentives of all project partners." It said Feed work is a key step towards reaching final investment decision (FID) on its gas project by the end of 1Q2018.
IOG said the letter of intent to be followed by a full contract covering both Feed and EPCI, expected to be signed before end-2017.
The company says its target is to produce 170mn ft3/d gas from its current total portfolio via an efficient hubs strategy. Last week it signed a letter of intent with US services giant Schlumberger relating to development of Blythe and Vulcan Satellites.
HFG has engineered and fabricated a number of recent North Sea platforms, including Clipper South, Ensign, Babbage and Breagh Alpha.
Mark Smedley