London-listed oil firm Premier Oil has painted some color on the expected sanction of its Tolmount development in the UK North Sea.
In its operational update on Monday, Premier Oil said FEED contracts for the Tolmount have been awarded to Wood Group for the offshore FEED , Land & Marine for the beach crossing and Costain for the onshore FEED.
A commercial heads of terms has also been signed with the operator of the Dimlington terminal to process the Tolmount fluids and to undertake terminal modification works.
Following FEED and tendering of the major project scopes, development sanction is targeted for 2018 1H, Premier Oil said on Monday.
“Subsurface studies continue to make good progress on Tolmount East and Tolmount Far East ahead of any future appraisal drilling,” Premier Oil said.
The Tolmount is a gas field located in the Southern North Sea, 40 miles east of the Yorkshire coast offshore the UK. The discovery was made by E.On back in 2011.
Premier Oil acquired the operatorship over the Tolmount last year, when it bought all of E.On’s UK North Sea assets for $120 million.
At the time, the company dubbed the Tolmount as “one of the largest discoveries in the Southern Gas Basin in recent years with estimated gross resources of 200Bcf-1Tcf.”
Premier Oil is the operator of Tolmount with a 50 percent stake. The company has previously said it might farm out a 20% interest in the project.
Offshore Energy Today Staff