IOG picks HSM Offshore for EPCI work on Core Project Phase 1

Independent Oil and Gas (IOG) has awarded the engineering, procurement, construction, and installation (EPCI) contract for its Core Project Phase 1 platforms in the UK Southern North Sea to Dutch contractor HSM Offshore.

IOG said on Monday that the contract comprised the design, engineering, fabrication, and installation – including assistance to hook-up and commission – of both normally unmanned installation (NUI) production platforms for the Southwark and Blythe gas fields in the UK Southern North Sea (SNS).

According to the IOG, the operator of the joint venture with CalEnergy Resources in charge of the Core Project, the contract is almost entirely lump-sum in nature.

Phase 1 comprises the development and production of the Southwark, Blythe, and Elgood gas fields through a total of five production wells with gas transported onshore to Bacton via the 24-inch Thames Pipeline.

Phase 2 consists of the Goddard, Nailsworth, and Elland fields. In total, the Core Project comprises 410 bcf of 2P+2C reserves and resources.

The Southwark Hub platform will be a key installation both for Phase 1 and other planned developments. The Blythe platform will be the focal point of the Blythe Hub which includes the Elgood subsea tie-back.

Following a competitive selection process, IOG has been working with HSM since late 2019 under pre-contractual arrangements to ensure that platform design and fabrication activities continue on schedule at the yard at Schiedam in the Netherlands.

IOG added that fabrication activities were progressing well and offshore installation was planned for the first half to 2021.

Andrew Hockey, CEO of IOG, said: “We are delighted to be working with HSM for the fabrication and installation of the Southwark and Blythe production platforms […].

“These low carbon footprint facilities at Southwark and Blythe will be key infrastructure for the safe and effective execution of our gas hub strategy, not only for our SNS Core Project assets but also to enable valuable add-on developments“.

Jaco Lemmerzaal, Managing Director of HSM, stated: “HSM is very pleased to be selected as a contractor by IOG for the Southwark and Blythe platforms.

“We are drawing on a wealth of platform engineering and construction experience and are making good progress towards the scheduled delivery date offshore in the first half of 2021.

“We look forward to continuing a positive relationship with IOG on its journey to becoming a substantial gas producer in the Southern North Sea“.