CALGARY, Canada – Iona Energy expects its UK subsidiaries Iona Energy (UK) Co. and Iona UK Huntington to commence insolvency procedures to protect the interests of all stakeholders.
This follows the failure of a proposed farm-out by Iona of the Orlando development, a planned subsea tieback to the Canadian Natural-operated Ninian complex in the UK northern North Sea.
The parent company of the proposed counterparty, a global energy company, opted instead to restrict capital allocation to its upstream operations.
Iona says the farm-out had been a key component of its restructuring. The company would have required significant additional funding to finance its share of capital expenditure for Orlando.
Having reviewed alternatives and met with a large number of equity and debt providers and strategic counterparties during 2015, Iona’s board concluded there was no reasonable prospect of obtaining alternative funding in the current commodity price environment and within the required timeframes.
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