Independent Oil and Gas will acquire the Thames Pipeline reception facilities at the Bacton Gas Terminal
Image: IOG signs sales and purchase agreement to acquire Thames Pipeline reception facilities. Photo: Image by rawpixel from Pixabay.
Independent Oil and Gas (IOG) has signed an agreement to acquire the Thames Pipeline reception facilities at the Bacton Gas Terminal, located on the North Sea coast of North Norfolk in the UK.
IOG has signed a sales and purchase agreement (SPA) with Perenco, Spirit Energy and Tullow Oil to purchase the facilities.
Upon completion of the deal, IOG will own the reception facilities, which consists of an area of land within the Perenco part of Bacton Gas Terminal, where IOG’s Thames pipeline connects to the terminal.
It comprises gas and liquid reception equipment which are planned to be refurbished and recommissioned, during the Core Project development phaset of IOG.
The Core Project is estimated to hold 410 BCF of 2P+2C reserves and resources across six discovered Southern North Sea gas fields.
IOG will own the reception facilities on completion of the transaction
At the reception facilities, all of the company’s gas will land to shore before it is sent to the main Perenco Bacton plant for final processing and then into the National Transmission System (NTS) for sale into the UK gas market.
IOG CEO Andrew Hockey said: “We are very pleased to have progressed to signing the Thames Reception Facilities SPA, which has required meticulous resolution of a number of legal complexities by working collaboratively with a range of parties. IOG is now set to be an infrastructure owner both offshore and onshore, which offers a substantial competitive advantage for an upstream company of our size and further de-risks our substantial proven gas portfolio.
“This is a key step in advancing our wider strategic and financing plans, in particular delivering a farm-out transaction to enable us to progress to FID at the earliest possible time.
“In addition, we expect to spud the exciting Harvey appraisal well around the end of next week and look forward to drilling the well safely and successfully. Given its potential size and synergies with our other assets, Harvey has the potential to create significant shareholder value.”