Premier Sanctions North Sea Gas Development, Export Pipeline

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Premier Oil said it reached a final decision with its joint venture and infrastructure partners to invest in the development of the Tolmount gas field in Britain’s North Sea, including construction of a minimal facilities platform exporting gas to shore via a new gas pipeline.

The Premier-operated Tolmount Main gas field, located in the Southern North Sea, is expected to produce around 500 Bcf of gas with peak production of up to 300 MMscf/d.

The EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) contract for the platform has been awarded to Rosetti Marino, and Saipem was selected as the pipeline EPCI contractor.

Construction is scheduled to start later this year, and first gas is targeted for late 2020, Premier said.

Premier expects to spend $120 million on project management and development drilling costs. The infrastructure joint venture between Humber Gathering System and Dana Petroleum will pay for and own the platform and pipeline and pay for upgrades to the onshore terminal. In return, Premier will pay a tariff for the transportation and processing of Tolmount gas through the infrastructure.

The partners in the Tolmount gas field are Premier (50%, operator) and Dana Petroleum (50%).

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