Premier Oil gets the go-ahead for Tolmount Main development

LONDON -- Premier Oil has announced that the development of its Tolmount Main gas field has been sanctioned by the joint venture and infrastructure partners.

The Premier-operated Tolmount Main gas field, located in the Southern North Sea, is expected to produce around 500 Bcf of gas (96 MMboe) with peak production of up to 300 MMscfd.

The project entails a minimal facilities platform exporting gas to shore via a new gas pipeline. The EPCIC (Engineering, Procurement, Construction, Installation & Commissioning) contract for the platform has been awarded to Rosetti Marino. Centrica’s Easington terminal has been selected as the host facility and Saipem as the pipeline EPCI contractor. Selection of the rig contractor for the four development wells is expected imminently.

Premier’s share of the capex required to develop this large gas field is estimated at $120 million, comprising project management and development drilling costs. The infrastructure joint venture between Humber Gathering System Limited (a member of the CATS Management Limited group of companies) and Dana Petroleum will own and pay for the platform and pipeline capex, as well as pay for upgrades to the onshore terminal. In return, Premier will pay a tariff for the transportation and processing of Tolmount gas through the infrastructure.

The Tolmount Main project now moves into the execution phase with construction works scheduled to start later this year. First Gas is targeted for fourth-quarter 2020.

The partners in the Tolmount gas field are Premier (50%, operator) and Dana Petroleum (50%).