REG - Independent Oil &Gas - Pipeline Integrity Confirmation

IogAnnouncement

17/07/2018 07:05

RNS Number : 8072U
Independent Oil & Gas PLC
17 July 2018
 


 
17 July 2018
 
Independent Oil and Gas plc
 
Pipeline Integrity Confirmation
Independent Oil and Gas plc ("IOG" or the "Company"), the development and production focused Oil and Gas Company, is pleased to provide an update on operations to confirm the integrity of the Thames Pipeline - a key step in its Southern North Sea dual gas hub development project.
Highlights:
·      Cut section analysis confirms that the offshore section of the pipeline is in excellent condition.
·      Inspection of the Bacton end of the pipeline is planned in the coming weeks to inform a planned elevated pressure hydrotest which will complete integrity confirmation.
·      Further intelligent pig run now not expected to be required until shortly before first gas.
·      FID now targeted for end September 2018.
·      Updated Corporate Presentation added to website.
Pipeline Integrity Confirmation
Further to the announcement made by the Company on 5 June 2018, IOG has been in detailed consultations with regulatory authorities on the necessary steps to re-commission the Thames Pipeline.  Analysis undertaken by Oilfield Testing Services (OTS) on behalf of IOG of the three 12-metre sections retrieved from the 60km offshore point during offshore operations in May 2018 has enabled a recalibration of the predicted internal corrosion. This shows the pipeline's condition can be considered practically 'as new'.
Under the new pipeline integrity confirmation plan, IOG will run a crawler based measurement device from the Bacton terminal to approximately 1km offshore to assess the line's internal condition.  This is the section that, if any, would have been at a higher risk of degradation since decommissioning in 2015.  Analysis of this data, along with the new corrosion baseline, will allow the Company to determine the safe maximum pressure of the subsequent 24-hour hydrotest that is required under the Pipeline Code.  These operations are expected to occur during July and August 2018.
In this context, a further intelligent pigging run is not expected to be required until the line is recommissioned shortly before First Gas.  By that time, the Thames Pipeline will run continuously from the Southwark platform to Bacton following the addition of a 7km 24-inch extension.  An intelligent pig would then be run to inform future pipeline integrity management along the entire length of the export route.
In addition to significant cost savings, this optimised programme is also expected to minimise the impact on project schedule from the inconclusive intelligent pigging operation. This is expected to be limited to a matter of weeks, with FDP approval now targeted for the end of September 2018.  Following that IOG expects to commence the process of full and safe recommissioning to export its 303 BCF of 2P gas reserves across five proven fields and additional 314 BCF of development and appraisal assets.
 
Updated Corporate Presentation
IOG is also pleased to announce that an updated version of its corporate presentation has been uploaded to the Company's website.
www.independentoilandgas.com 
Andrew Hockey, CEO of IOG commented:
"We are now implementing an optimised programme to provide full and conclusive confirmation of the integrity of the Thames pipeline.  Thanks to some excellent work by the IOG team and support of the regulatory authorities, this does not require an intelligent pig re-run in the short term.  This has helped to protect our timeline to FID which in turn ensures that we keep the overall project on schedule to hit First Gas in late 2019."
 
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Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.
 
Enquiries:



Independent Oil and Gas plc
Andrew Hockey (CEO)
James Chance (CFO)


+44 (0) 20 3879 0510




finnCap Ltd
Christopher Raggett / Anthony Adams
(Corporate Finance)
Camille Gochez
(Corporate Broking)


+44 (0) 20 7220 0500




Camarco
Georgia Edmonds / Tom Huddart / Monique Perks


+44 (0) 20 3757 4980



Notes
About Independent Oil and Gas:
IOG owns substantial low risk, high value gas Reserves in the UK Southern North Sea.  The Company is targeting a 2P peak production rate in excess of 200 MMcfd (c. 35,000 Boe/d) from its substantial current portfolio (2P Reserves of 303 bcf) via an efficient hub strategy.  Alongside this it continues to pursue value accretive acquisitions, to generate significant shareholder returns.  All IOG's licences are owned 100% and operated by IOG.
Further information can be found on www.independentoilandgas.com




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