Industry Body Responds to Tolmount Sanction
Oil & Gas UK has responded to Premier Oil plc’s announcement on Monday that the development of its Tolmount Main gas field, located in the southern North Sea, has been sanctioned by joint venture and infrastructure partners.
In a statement sent to Rigzone, the industry body’s Market Intelligence Manager, Ross Dornan, said “this is a clear example of how companies operating on the UK Continental Shelf can successfully adopt collaborative and innovative commercial models to re-scope a development concept”.
“It demonstrates the value of upstream and midstream operators working closely together to stimulate investment and deliver a project that is critical to maximizing economic recovery from the UK North Sea, ensuring continuation of an indigenous gas supply as well as providing new activity for supply chain companies,” Dornan added.
The Tolmount Main gas field is expected to produce around 500 billion cubic feet of gas, with peak production of up to 300 million cubic feet per day, according to Premier.
Premier’s share of the capital expenditure required to develop the field is estimated at $120 million. First gas at the project is targeted for the fourth quarter of 2020.
“Tolmount is one of the largest undeveloped gas discoveries in the southern North Sea and is, in barrel of oil equivalent terms, similar in size to our Catcher project,” Premier Oil CEO, Tony Durrant, said in a company statement on Monday.
Oil & Gas UK, which was established in April 2007, is a representative body for the UK offshore oil and gas industry. The industry body’s aim is “to strengthen the long-term health of the offshore oil and gas industry in the United Kingdom,” according to its website.
Earlier this month, Oil & Gas UK said Neptune Energy Group’s acquisition of interests in the Seagull and Isabella assets was welcomed by industry.
On August 13, Neptune Energy Group revealed that it had agreed to acquire Apache’s 35 percent working interest in the Seagull development and a 50 percent working interest in the Isabella prospect.
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