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Vermilion Energy to take operatorship of Irish offshore gas field

Published 07/12/2017, 08:51 AM
© Reuters.  Vermilion Energy to take operatorship of Irish offshore gas field
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  • Vermilion Energy (NYSE:VET) will become operator of the Corrib natural gas field in Ireland after the Canada Pension Plan Investment Board becomes the largest partner in the field upon closing its $1.2B purchase from Royal Dutch Shell (LON:RDSa).
  • After the Shell deal closes, CPPIB agrees to to transfer a 1.5% interest in the project to VET for €19.4M (C$32.2); VET then would own a 20% interest in Corrib and be its operator, while Statoil (NYSE:STO) continues to hold a 36.5% and CPPIB would have the remaining 43.5%.
  • Upon assumption of operatorship of Corrib, VET estimates it will operate 87% of its production base as compared to 72% currently.
  • The Corrib field has a gross plant capacity of ~350M cf/day of natural gas, provides 60% of Ireland's natural gas consumption and comprises 95% of the country's gas production.
  • Now read: Vermilion Energy (VET) Presents At Bank of America Merrill Lynch (NYSE:BAC) 2017 Energy Credit Conference - Slideshow


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