INNOVATIVE INFRASTRUCTURE PARTNERSHIP SHORTLISTED FOR OIL & GAS UK AWARD
Posted on September 05, 2018
The unique and innovative new infrastructure partnership driving the development of the Tolmount field has been shortlisted for a 2018 Oil & Gas UK award in the MER UK (Maximising Economic Recovery) category.
The partnership has been formed by Premier Oil and Dana Petroleum, both 50% equity holders and joint venture partners in the field, and Humber Gathering System Limited (HGSL), a member of the CATS Management Limited (CML) group of companies.
The partners have put in place commercial agreements whereby the ownership and operatorship of the Tolmount field is separate to that of the infrastructure, known as the Humber Gathering System (HGS).
HGSL and Dana will jointly construct and own the infrastructure comprising a platform and gas export pipeline, with HGSL assuming operatorship. This approach has significantly reduced Premier’s capex, allowing them to target their investment and expertise on the subsurface to maximise reservoir recovery.
Andy Hessell, Managing Director of CML said: “We are delighted that the partnership between Premier, Dana and HGSL has been shortlisted for an award, as we believe it demonstrates MER in action. It’s different to anything we’ve seen in the industry before, and is an innovative solution that has unlocked investment and enabled the development of the Tolmount field, one of the largest Southern North Sea gas fields to be discovered in recent years.
“We believe that the partnership is a great example of the right assets being in the right hands. It demonstrates the value of upstream and midstream operators working closely together to stimulate future investment and deliver a project that is critical to maximising economic recovery in the North Sea.”
The development of the Tolmount Main gas field was sanctioned by the joint venture and infrastructure partners on 17 August 2018 and is now in execution phase, with construction works expected to start later this year. First gas is targeted for Q4 2020.The unique and innovative new infrastructure partnership driving the development of the Tolmount field has been shortlisted for a 2018 Oil & Gas UK award in the MER UK (Maximising Economic Recovery) category.