IOG Says Thames Pipe Fully Tested
UK-listed Independent Oil and Gas (IOG) said September 25 that it has successfully tested its Thames gas pipeline’s integrity.
A 150-bar pressure hydrotest has fully confirmed the Thames Pipeline's integrity at pressure well above that required to deliver IOG's gas safely to Bacton terminal, it said, adding it should be able to supply 550mn ft3/d (5.7bn m3/yr) into the UK market for the next two decades. IOG’s current UK southern North Sea (SNS) development project will use around half that capacity at peak.
IOG expects to take final investment decision on its SNS project during 4Q2018, with funding being finalised. It expects construction of key project infrastructure is expected to follow in 2019, with installation in Q1-Q2 2020 and first gas in late Q2 2020. Two months ago IOG was targeting first gas by end-2019.
"The recommissioning of the Thames Pipeline will breathe new economic life into a part of the North Sea formerly considered to be in terminal decline and help to maximise economic recovery for the UK,” said CEO Andrew Hockey. He said the company was also preparing to drill a fully funded appraisal well at Harvey in the coming months which could increase IOG’s proven reserves. (Banner map: IOG)
Update September 27: IOG reported a 1H2018 post-tax loss of £2.56mn ($3.4mn), compared to losses of £1.41mn for 1H2017 and £2.75mn for full year 2017.