Corrib Gas Field

  • The sale of gas from the Corrib gas field fell by 35 percent in the first six months of this year compared to last year.

    The Irish Independent reports that lower gas prices resulted in the drop of revenue.

    The field , which is located off the North Mayo coast, is operated by Canadian firm, Vermilion.

    Business Journalist Gavin McLoughlin says there was also a decline in gas production.

  • Royal Dutch Shell plc (Shell), through its affiliate Shell Overseas Holdings Limited, has completed the sale of its shares in Shell E&P Ireland Limited (SEPIL), which holds a 45% interest in the Corrib gas venture, for up to $1.30 billion (€1.14 billion), to Nephin Energy Holdings Limited (NEHL), a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB). Completion follows receipt of all necessary partner and regulatory consents and the transaction’s effective date is 1 January 2017.

    The transaction includes an initial consideration of $958 million (€840 million), interest of $54 million (€47 million), and additional payments of up to $285 million (€250 million) between 2018-2025, subject to gas price and production. Completion of the deal represents Shell’s exit from the upstream sector in Ireland.

    The sale will contribute to Shell’s $30 billion divestment target for 2016-2018.

    Shell Energy Europe Limited (SEEL) has signed an offtake agreement to purchase Corrib gas following completion.

    Shell retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited.