IOG makes the following statement regarding the gas sales agreement ("GSA") entered into in 2021 with Gazprom Marketing & Trading Limited ("GM&T"). 

In July 2021, following a competitive offtake process involving more than 10 bidders, the Company, via its subsidiaries IOG North Sea Limited ("IOGNSL") and IOG UK Ltd ("IOGUKL"), signed a GSA with GM&T for its equity production from the Elgood and Southwark fields up to October 2023. GM&T is based in London and has been involved in the UK gas market for over two decades. 

Elgood and Southwark, along with the Blythe field, collectively form Phase 1 of the IOG-operated Saturn Banks Project. The Company has a separate gas sales agreement in place with BP Gas Marketing Limited for Blythe gas. 

The Company has, via IOGNSL and IOGUKL, served notices on GM&T with immediate effect. The Elgood and Southwark equity gas is now expected to be sold to an alternative buyer. 

Andrew Hockey, CEO of IOG, commented: 
"Our thoughts are with everyone affected by the shocking, unprovoked invasion of Ukraine. In that context, IOG has today served notices to GM&T with immediate effect.  

We had strong interest in rights to buy IOG gas during the competitive offtake process we ran last year and would expect to sell the gas to a highly credible alternative buyer. We already have a separate sales agreement in place with BP Gas Marketing Ltd for the Blythe field."