JERSEY OIL AND GAS PLC Jersey Oil and Gas plc provided the following update on the Buchan redevelopment project ahead of today's Annual General Meeting ("AGM"). Following the announcement of an earlier than expected UK General Election in July 2024, the Buchan joint venture partners have assessed the implications and their plan for progressing the project. While activities continue in order for the Buchan project to be ready for Field Development Plan ("FDP") approval by the end of this year, the exact timing for achieving this key milestone and enabling project sanction is naturally linked to securing fiscal clarity from the next government and ensuring that the project remains financially attractive.
The Buchan Operator, NEO Energy, continues to make good progress on advancing the work programme required to enable project sanction. Completion of the necessary engineering work is on track and the first offshore survey was completed in May, obtaining the geophysical data used for the subsea and drilling rig contract tendering process. A second survey to obtain geotechnical data is scheduled to commence this month.
Work is also advancing on completion of the other two key remaining workstreams, being the subsurface studies required to finalise the drilling programme and operational verification and preparation for the handover of the "Western Isles" floating production, storage and offloading vessel ("FPSO") to the Buchan joint venture. Alongside these activities, engagement on the Buchan FDP and associated regulatory consents is progressing to plan with the North Sea Transition Authority ("NSTA") and the Offshore Petroleum Regulator for the Environment and Decommissioning. Following the receipt of fiscal clarity and subject to FDP approval, the major contract awards and capital commitments for the project are now expected in 2025, which leads to Buchan first production being targeted for late 2027.
Under the current fiscal policy, the Company's valuation of the Buchan redevelopment project does not materially change as a result of the later first production date.
