20th Aug 2018 07:58
LONDON (Alliance News) - Premier Oil PLC said Monday that the development of Tolmount Main gas field located in North Sea has been approved by joint venture and infrastructure partners.
"The sanction of our high return Tolmount project marks a major milestone for Premier and underpins our medium term UK production profile. 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," said Premier Oil Chief Executive Tony Durrant.
The oil explorer said the Tolmount Main project will now move into the execution phase with construction works scheduled to start later this year. First gas from the project is targeted for fourth quarter of 2020.
The Tolmount Main field, which is operated by Premier Oil, is expected to produce around 500 billion cubic feet of gas with peak production of up to 300 million standard cubic feet per day.
Partners in the Tolmount gas field include Premier with 50% stake and Dana Petroleum with the remaining 50%. Premier's share of capital expenditure for developing the gas field is estimated at USD120 million.
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