logo-loader
EnergyOil & Gas
Premier Oil PLC

Premier Oil greenlights development of new North Sea gas field

“Tolmount is one of the largest undeveloped gas discoveries in the Southern North Sea and is, in barrel of oil equivalent terms, similar in size to our Catcher project."

oil and gas operations
Premier's share of the capex bill will be only US$120mln

Premier Oil PLC (LON:PMO) has announced the greenlight for the Tolmount gas field development project in the southern portion of the North Sea.

Tolmount is slated to produce around 500bn cubic feet of gas ( 96mln barrels oil equivalent ) over its lifespan, with peak production rates anticipated at up to 300mln cubic feet per day (58,000 boepd).

It is planned as a minimal facilities development, with a platform exporting gas to shore via a new pipeline.

READ: Premier Oil boosted by Catcher field start-up

Premier Oil’s share of the development capital is estimated at US$120mln, as a separate infrastructure partnership will own and pay for the platform and pipeline capex, as well as pay for onshore upgrades. At its end, Premier will pay a tariff for the transportation and processing through the infrastructure.

Construction work is expected to start later this year, ahead of ‘first gas’ production which is anticipated in the fourth quarter of 2020.

"The sanction of our high return Tolmount project marks a major milestone for Premier and underpins our medium-term UK production profile,” said Tony Durrant, Premier Oil chief executive.

“Tolmount is one of the largest undeveloped gas discoveries in the Southern North Sea and is, in barrel of oil equivalent terms, similar in size to our Catcher project. 

“We have also secured an innovative financing structure for the project which minimises our capital expenditure whilst maintaining our exposure to the upside in the Greater Tolmount Area."

Premier owns 50% of Tolmount alongside Dana Petroleum which owns the other 50% and is one of two stakeholders in the separate pipeline partnership.

Quick facts: Premier Oil PLC

Price: £0.88

Market: LSE
Market Cap: £7.27 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: hVIVO PLC's 2020 pipeline 'looking strong' as it expands...

hVIVO PLC's (LON:HVO) executive chairman Trevor Phillips tells Proactive London's Andrew Scott the business is now better positioned to be profitable next year. The creator of pioneering human disease models based upon viral challenge generated revenues of £5.9mln in the six months ended June...

2 hours, 32 minutes ago

RNS

Holding(s) in Company

7 hours, 8 minutes ago

Holding(s) in Company

3 days, 8 hours ago

Holding(s) in Company

1 week, 2 days ago

Director/PDMR Shareholding

2 weeks, 2 days ago

Half-Year Results

4 weeks ago

2 min read