North Sea Tolmount Main Gas Field Gets Green Light
Premier Oil plc announced 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.
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.
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.
“The sanction of our high return Tolmount project marks a major milestone for Premier and underpins our medium term UK production profile,” Premier Oil CEO, Tony Durrant, said in a company statement.
“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. We have also secured an innovative financing structure for the project which minimizes our capital expenditure whilst maintaining our exposure to the upside in the Greater Tolmount Area,” he added.
The partners in the Tolmount gas field are Premier (50 percent, operator) and Dana Petroleum (50 percent).
Earlier this year, Premier confirmed that its board had approved the Tolmount gas project and announced that formal partner sanction was scheduled for the third quarter.
Through the acquisition of E.ON's UK North Sea assets in 2016, Premier acquired a 50 percent operated interest in the Greater Tolmount Area in the Southern Gas Basin.
In addition to Tolmount and Catcher, Premier has interests in several other offshore UK projects, according to its website, including Solan, Ravenspurn North and Johnston.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.