Independent Oil & Gas ahead on gas sales deal with BP

24th Feb 2014 14:18

Independent Oil and Gas attracted some buyers after it announced a gas sales agreement with BP Gas Marketing, a wholly owned subsidiary of oil giant BP, for its 50 per cent share of the gas produced from the forthcoming Blythe gas field development in the Southern North Sea. Independent expects Blythe gas to be sold at Bacton gas terminal on 'a day-ahead' basis, which is standard for gas that meets normal system entry requirements. The company added that its short term target for Blythe is to submit the field development plan in the third quarter of this year. More details regarding the development schedule will be released in due course. Independent's Chief Executive Mark Routh said of the gas sales deal: "It is another important step on the road to first gas from Blythe. It also builds upon our excellent relationship with BP as already demonstrated by the long term crude oil marketing and offtake agreement in place for the Skipper field with BP Oil International Limited, which includes a commitment to a Skipper debt facility." Chris Schemers, Head of Origination at BP Gas Marketing, said: "As a North Sea producer BP understands the challenges faced by explorers and producers in getting their gas to market. We're pleased that many independent producers choose us to flow their gas into Europe and the UK." Independent is focused on developing established assets in the North Sea, whilst maintaining some exposure to exploration upside. The company is looking to grow both organically and through acquisition and currently has four licenses in the North Sea. In addition to the Blythe and Skipper licences co-owned 50% with Alpha Petroleum Resources, the company has a 100% working interest in two licences awarded in the 27th licencing round. One is to the west of and adjacent to Skipper, the other is to the east of Blythe. Both these licences have potential resources that could be tied back to developments at Skipper and Blythe respectively. In mid-afternoon trade Independent Oil & Gas shares were up 8.16% or 2p to 26.5p, valuing the company at £15.78m.