UK's IOG to drill first North Sea gas production well in Q1 2021

London — UK-listed Independent Oil and Gas, or IOG, which is developing a major hub of gas fields in the UK North Sea, said Nov. 3 that it planned to drill the first production well at its core project in the first quarter of 2021.

IOG remains on track to deliver first gas in the third quarter of next year, it said, as it announced Nov. 3 the rig contract award for drilling five production wells to a subsidiary of Noble Corp.

The first phase of IOG's core project will see gas produced from the Southwark, Blythe and Elgood fields.

IOG is looking to become a "substantial" UK gas producer, with plans for peak output from the project, including a second phase in 2023, of 140 MMcf/d (4 million cu m/d). That would amount to about 4% of current UK gas production.

"The Phase 1 drilling campaign is scheduled to commence in Q1 2021 and, subject to actual well durations over the five wells, is expected to last into Q2 2022, with first gas scheduled for Q3 2021," IOG said in a statement.

The company has also contracted most of the key services, tangibles and logistics for the Phase 1 drilling campaign, and is tendering and negotiating multiple associated contracts, it said.

"This rig contract is another key step in ensuring efficient execution of Phase 1 of our core project, with optionality for further drilling activity on favorable terms," IOG CEO Andrew Hockey said.

IOG has said it will look to growth within its existing Southern North Sea gas portfolio, including several further proven gas discoveries, multiple nearby potential incremental investment assets, and two further gas discoveries in the recently released UK offshore bidding round.