UK-listed Independent Oil and Gas is hoping to reach a final investment decision on its Core development project in the North Sea next month.

Under the first phase of development at Core, which comprises six southern North Sea gas fields, the operator said it assumes “ an early September FID date”.

The gas hub development comprises the Blythe, Elgood, Southwark, Nailsworth and Elland fields that are estimated to hold proven and probable gas reserves of 302 billion cubic feet, as well as the Goddard discovery that has 108 Bcf in proven and probable contingent resources.

Under current plans, first gas is expected to be reached in July 2021 from the Southwark field.

In addition, the drilling and completion of the Elgood subsea well will be accelerated to bring Blythe and Elgood production online simultaneously three months after Southwark, IOG said.

To fund the plans, in addition to the recent farm-out deal with CalEnergy Resources, IOG will also issue £88 million ($106 million)-worth of bonds.

CalEnergy, a subsidiary of Warren Buffet’s Iowa-based private equity giant Berkshire Hathaway, agreed earlier this year to take a 50% stake in all of IOG’s southern North Sea assets, comprising all of its upstream assets, with the exception of the Harvey licences, in a £40 million deal.

Andrew Hockey, chief executive said: “We are very pleased to have finalised our project and financial planning and to now be ready to launch the bond process. In conjunction with the announced farm-out, this bond issue would see IOG fully funded for phase 1 of our Core project without any additional equity requirement.”

“The company is in the advanced stages of retendering certain key project contracts and preparing to recommend final awards. Formal awards are expected to be made shortly after FID, which will follow directly from completion of the farm-out and bond,” IOG said in a statement.

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IOG eyes September FID on North Sea project