Tolmount and HGS joint development sanctioned

Premier Oil announced today, Monday 20 August 2018, 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 with peak production up to 300 mmscfd.

Humber Gathering System Limited (HGSL), a member of the CATS Management Limited (CML) group of companies, and Dana Petroleum will jointly fund, construct and own the Tolmount infrastructure, known as the Humber Gathering System (HGS), with HGSL assuming operatorship.

HGS will comprise a minimal facilities platform and a new gas export pipeline to the Easington gas terminal in East Yorkshire. HGSL and Dana will also jointly undertake some onshore modifications at the terminal that are required to enable it to receive and process gas from HGS.

The Tolmount Main project now moves into the execution phase with construction works scheduled to start later this year. First gas is targeted for Q4 2020.

Andy Hessell, Managing Director of CML commented: “HGS is a significant step for CML, and our investment fits with our vision of being recognised as the leading midstream business in the UK. It is an expansion in our new geography in the Southern North Sea and is our first material greenfield project. “Growing our business in the Southern North Sea with both HGS and our recent acquisition of 65% equity in the Esmond Transportation System is allowing us to diversify our portfolio through exposure to a new catchment area with different business dynamics and to acquire and develop infrastructure that has the characteristics we value.

“The partnership between Premier, Dana and HGSL is a great example of the right assets being in the right hands. It demonstrates the value of upstream and midstream operators working closely together to stimulate future investment and deliver a project that is critical to maximising economic recovery in the North Sea, and to the security of the UK’s gas supply.”


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