Vermilion assumes operatorship of Corrib project off Ireland

Vermilion Energy Inc has assumed operatorship of the Corrib natural gas project offshore Ireland following the close of Shell Overseas Holdings Ltd’s sale of its 45% interest in the project to Nephin Energy Holdings Ltd (NEHL), a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB).

NEHL has acquired 100% of Shell E&P Ireland Ltd, which holds 45% interest in Corrib.

CPPIB plans to transfer Shell E&P Ireland along with a 1.5% working interest to Vermilion.

The estimated purchase price after adjustments is €6 million.

Natural gas production from the field in 350 metres of water 83 kilometres offshore north-western Ireland began in December 2015.

At peak production, Corrib is expected to reach 260 MMscfd of gas, or 45,000 boe/d. At peak levels, the potential exists to meet as much as 60% of Ireland’s gas demand.

Following the transfer to Vermilion, ownership in Corrib will be as follows: Vermillion, operator, 20%; NEHL, 43.5%; Equinor, 36.5%.

Source: Oil & Gas Journal

Source: Oil & Gas Journal