REG - EnergyPathways PLC - FEED Services Update

EnergypathwaysAnnouncement

21/02/2024 07:00

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RNS Number : 8352D  EnergyPathways PLC  21 February 2024

 

 

21 February 2024

 

EnergyPathways plc

 

("EnergyPathways" or the "Company")

 

Subsea FEED engineering, project support and offshore construction services
update

 

EnergyPathways plc (AIM: EPP), an integrated energy transition company
delivering lower emission energy solutions which offer energy security to the
UK, is pleased to announce the signing of a Memorandum of Understanding
("MoU") with MCS Subsea Solutions Limited ("MCS") and Mermaid Subsea Services
(UK) Limited ("Mermaid") in relation to negotiating the provision of subsea
FEED engineering, project support, procurement and offshore construction
services for its wholly owned and operated Marram field project (the "Marram
Project" or the "Project") in the UK Irish Sea. As part of the FEED
engineering, project support, procurement and offshore construction services
processes, the Company has already contracted with MCS and Mermaid in respect
of initial work orders, the results of which will allow the Company to
progress to defining the scope of the final contract in due course.

 

EnergyPathways is progressing the Marram Project, which is a short cycle low
emission gas field, towards Final Investment Decision ("FID"). The project
concept envisages a simple low-cost 2 well subsea tieback development with
first production targeted for 2025.

 

The Marram Project represents the first UKCS development project on which MCS
and Mermaid will collaborate from FEED to commissioning and deploy proven
technology that can reduce development costs and delivery cycles. MCS and
Mermaid specifically plan to access fit for purpose vessel solutions as well
as to use their market position to secure global supply chain solutions for
long lead items. They also plan to deploy the use of a mechanical interference
fit connection system (Zap-Lok™) for the submarine pipeline. This is a
globally proven and approved technology.  Since the early 1990's more than
7500km of this system has been installed and has been shown to save up to 40%
in installation costs in shallow water relative to other approaches. The
Marram Project development plan will also facilitate the use of diverless
connection systems for shallow water, thus reducing the risks associated with
the use of divers for the pipeline tie-in operations.

 

Commenting on the signing of the MOU, EnergyPathways' CEO Ben Clube said:

"The signing of this MoU is an important step in ensuring the necessary subsea
expertise and project support capabilities are in place to deliver the Marram
Project utilising cost-effective and timely project delivery solutions. The
Marram Project will provide affordable and reliable low emission energy to the
UK market, while offering security of energy supply and commercial returns to
our investors".

 

Scott Cormack, Regional Director for Mermaid Subsea Services UK, said:

"Delivering on the UK Government's strategy of Maximising Economic Recovery of
offshore oil and gas reserves, while also ensuring an orderly transition to
net zero, is core to Mermaid's business, and this MoU is further evidence of
that. Marram is a low emission, high reward field, and we look forward to
working with EnergyPathways and MCS to make this project a reality."

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

 

 

Enquiries:

 

 EnergyPathways                                        Tel: +44 (0)207 466 5000, c/o Buchanan (Financial PR)

Ben Clube / Ben Hodges

                                                     Email : info@energypathways.uk

 Cairn Financial Advisers LLP (Nominated Adviser)      Tel: +44 (0)20 7213 0880
 Jo Turner / Louise O'Driscoll / Sandy Jamieson
 Optiva Securities Limited (Joint Broker)              Tel: +44 (0)20 3137 1903
 Christian Dennis / Daniel Ingram
 Global Investment Strategy UK Limited (Joint Broker)  Tel: +44 (0)20 7048 9000
 Callum Hill / James Sheehan
 Buchanan (Financial PR)                               Tel: +44 (0)207 466 5000
 Ben Romney / Barry Archer
Email: energy@buchanan.uk.com (mailto:energy@buchanan.uk.com)

 

For further information on EnergyPathways visit www.energypathways.uk and
@energy_pathways on X (formerly Twitter).

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

 

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

 

 

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