Iona negotiating farm-out of Orlando in North Sea

Offshore staff

CALGARY, CanadaIona Energy expects cost for the Orlando tieback to the Ninian Central platform in the UK northern North Sea during 2015-2016 to be reduced from $215 million to $192 million.

The company has taken advantage of the favorable contracting environment for 2016 oilfield services to secure savings.

Recently the integrated riser hang off structure was loaded onto a supply vessel, and installation is expected to be completed next month.

Orlando remains on track for first production in 4Q 2016.

Last month, Iona announced a proposed restructuring exercise under which it would farm out of Orlando and the Ronan prospect to an unnamed upstream subsidiary of a global energy company.

The deal involves selling 25% of Orlando for a $25.5-million development cost carry plus cash payments to Iona of $10.8 million after first oil.

In addition, the partner would pay full costs of Ronan/Oran technical studies to earn an option of a 66.67% interest in return for funding full costs of an appraisal well. A drill-or-drop decision is due by the end of this year.



Share your news with Offshore at

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...