Subsea 7 announced the award of a sizeable(1) contract by Independent Oil and Gas (IOG) for the Blythe and Vulcan Satellites field development, located in the UK sector of the southern North Sea.

The contract scope includes the project management, engineering, procurement, construction and installation of 35km of flow lines between the Southwark, Blythe and Elgood fields, together with subsea structures, an umbilical, and associated subsea tie-ins.

Project management and detailed engineering has commenced at Subsea 7’s office in Aberdeen, and offshore activities are scheduled to commence in 2020.

Jonathan Tame, Vice President UK & Canada, said: “We are pleased to be awarded this contract, which strengthens our reputation as a global provider of value-driven SURF solutions. We look forward to collaborating with IOG to ensure the cost-effective, safe and timely execution of each phase of the development.”

(1) Subsea 7 defines a sizeable contract as being between USD 50 million and USD 150 million.

About Subsea 7

Subsea 7 is a global leader in the delivery of offshore projects and services for the evolving energy industry, creating sustainable value by being the industry’s partner and employer of choice in delivering the efficient offshore solutions the world needs. Subsea 7 is listed on the Oslo Bors (SUBC).

About IOG

IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. The Company’s Core Project targets a gross 2P peak production rate of 146 MMCF/d (c. 25,000 Boe/d) from gross 2P gas Reserves of 302 BCF¹ + 2C gas Contingent Resources of 108 BCF², via an efficient hub strategy. In addition to the independently verified 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C Contingent Resources at Goddard, IOG also has independently verified best estimate gross unrisked prospective gas resources of 73 BCF² at Goddard and is in the process of updating its management estimate of gas resources at Harvey. Alongside this IOG continues to pursue value accretive acquisitions to generate significant shareholder returns.