StockMarketWire.com - Independent Oil and Gas has signed a letter of intent with Heerema Fabrication Group for front end engineering and design (FEED) and engineering, procurement, construction and installation (EPCI) of up to four normally unmanned installation platforms (NUIs).

The NUIs will be utilised for IOG's Southern North Sea (SNS) gas project, which consists of the Blythe Hub and Vulcan Satellites Hub developments.

IOG said that FEED costs would be fully deferred and EPCI costs were to be 50% deferred.

Chief executive and interim chairman Mark Routh said: 'We are very pleased to be working with Heerema on the platforms for our Southern North Sea developments.

'This LOI reflects the strong operational progress the team continues to make delivering on our strategy.

'Heerema are a very experienced and accomplished platform fabricator and FEED will start immediately with a view to adapting an established UK Southern North Sea design previously built by Heerema.

'Efficient platform fabrication and installation will be critical to the successful and timely development of our two gas hubs, and Heerema represents the best technical and commercial solution to achieve this.

'Our commercial model aligns the incentives of all project participants towards the efficient delivery of IOG's substantial gas resources and the intended cost deferral will contribute significantly to funding the portfolio into production.

'We look forward to finalising the contract with Heerema and agreeing similar terms with other key contractors to continue implementing our gas hub strategy for the undersupplied UK market.'




At 8:07am: [LON:IOG] Independent Oil Gas PLC share price was +0.5p at 15p



Story provided by StockMarketWire.com