NORTH Sea-focused Independent Oil & Gas has underlined the potential to bring so-called stranded oil and gas fields in the area onstream after finalising a low cost deal to buy a recently-decommissioned pipeline.
The London-based oil and gas firm said it has signed a Sale and Purchase Agreement to acquire the Thames Gas Pipeline in the Southern North Sea for a nominal consideration from Centrica Resources, Tullow Oil and Perenco UK.
The company had been trying to finalise the terms of the agreement since announcing in January that it had agreed a memorandum of understanding with the vendors.
Chief executive Mark Routh said the acquisition of the pipeline could help transform the economics of a range of projects to bring undeveloped gas finds into production.
He noted: “We acquired most of our SNS gas portfolio at low cost because the assets in this area were considered stranded without a viable export route. This acquisition allays those concerns and is therefore of great importance to IOG as we now have a route to market for our gas.”
Mr Routh thinks moves to bring the pipeline back into operation could create benefits for other firms. Aim-listed Independent could allow other firms to use the pipeline for a tariff.
“We believe this is the kind of innovation required to breathe new life into the Southern North Sea,” added Mr Routh.
Upon completion, Independent will complete an inspection to ensure the pipeline’s integrity for safe re-use.
Completion is subject to regulatory consents.
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