BG Won’t Build Lomond BLP (UK)

BG Won't Build Lomond BLP

BG has informed Serica, as Operator of the Columbus field, that it has decided not to proceed with the construction of a Bridge Linked Platform (“BLP”) adjacent to the BG operated Lomond field. The BLP was to be part of the export route for gas and gas condensate from the Columbus field.

As a consequence, the Columbus group are reviewing other alternatives for the export of Columbus gas and liquids production. This includes the possibility of the Columbus field being tied directly to the Lomond Platform. Serica believes this to be a viable alternative and will be reviewing this with its partners and with BG to provide, as far as possible, that the impact on the Columbus sub-sea development programme and timetable will be minimal.

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Tony Craven Walker, Chairman and Interim CEO, said

“The decision by BG not to construct the Lomond BLP was unexpected but we are confident that we will be able to conclude alternative export arrangements and limit the impact on Columbus which remains commercially viable as a separate field development. BG’s decision is unrelated to the Columbus field and we look forward to discussing production alternatives with them. It is important, at a time of severe gas shortages in the UK, that we bring ashore as expeditiously as we can, those reserves of gas and related liquids which still remain to be developed in the North Sea and we remain confident that we can do that with Columbus.”

“We continue to make good progress on all our activities, particularly those relating to the major exploration potential of our interests in the largely unexplored Atlantic Margin basins offshore Ireland, Morocco and Namibia, and I look forward to providing an update on these, as well as Columbus, in due course.”

 

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Press Release, March 28, 2013