Independent Oil & Gas has entered into a sales agreement with BP for gas from the upcoming Blythe field in the Southern North Sea.
IOG will sell its 50% share of gas from the field, which is expected to contain up to 6million barrels of oil equivalent, on a day ahead basis via BP’s Bacton gas terminal.
The firm said it expected to submit the field development plan for the field in the third quarter of this year.
IOG chief executive Mark Routh said: “This agreement is another important step on the road to first gas from Blythe and also builds upon our excellent relationship with BP as already demonstrated by the long-term crude oil marketing and offtake agreement already in place for the Skipper Field.”
BP Gas Marketing head of origination Chris Schemers 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.”
Earlier this month, IOG was granted an 18-month extension to the Blythe and Skipper North Sea licences following the sale of its partner to a US equity firm.
ATP Oil & Gas, which operates the two licences, was sold to Alpha Petroleum – a subsidiary of US equity firm Petroleum Energy – in a deal worth around £81million.
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