NORTH Sea-focused Independent Oil and Gas has received a boost for its plans to revamp a disused pipeline which it reckons could help unlock the potential of a group of undeveloped finds, although it has also hit a complication.
The London-based firm said three sections of the 36 mile Thames pipeline that were taken ashore for inspection were found to be in extremely good condition with very little evidence of corrosion.
The company said the successful inspection was a significant first step in verifying the integrity of the pipeline, which was decommissioned in 2015.
A pipeline pressure test completed using a pigging device, which was installed in the line, provided significant further evidence of the line’s integrity.
The results will increase directors’ confidence in the viability of their plan to use the pipeline to provide a low-cost way of getting production from the fields on its acreage to market.
Independent’s progress will be followed closely amid the official drive to ensure the UK maximises the potential of undeveloped finds.
Aim-listed Independent acquired the Thames pipeline for a nominal sum from Perenco in April last year in what it called a strategic deal.
The company noted then it had acquired most of the fields in its portfolio at low cost as they were considered stranded without a viable export route.
Chief executive Andrew Hockey said yesterday the pigging programme had so far provided extensive and valuable new information to support plans to recommission the Thames pipeline and produce over 300 billion cubic feet gas reserves through the Bacton terminal and the UK market.
Independent added: “Due to an apparent pig malfunction, it became evident that we had not collected sufficient data.”
It plans to ask the regulator for a short extension to the timetable for approval of the development plan for the Blythe and Vulcan hubs, scheduled for end August, pending completion of another pigging run.
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