Saturday 25 February 2017

Shell Ireland gets €50m cash injection

Gordon Deegan

By the end of last year, the costs of the Corrib gas project were set to top €3.6bn - more than four times the original estimate of €800m. Photo: Reuters
By the end of last year, the costs of the Corrib gas project were set to top €3.6bn - more than four times the original estimate of €800m. Photo: Reuters

Shell Ireland has received a further €50m cash injection from oil giant Shell as the Irish firm finally generates revenues from the long delayed €3.6bn Corrib Gas field.

The increase of €50m in capital at Shell E&P Ireland Ltd is confirmed in new documents lodged with the Companies Office which show that the authorised share capital at the firm now stands at €1.4bn.

Shell and its Corrib Partners over 2015 and 2014 spent €580m, which was made up of an investment of €260m last year and €320m in 2014 to bring gas ashore.

By the end of last year, the costs of the Corrib gas project were set to top €3.6bn - more than four times the original estimate of €800m.

However, with the capital works complete, investment is to reduce significantly from this year onwards.

The Corrib Natural Gas project was officially launched in January and the field is expected to produce the equivalent of 45,000 barrels of oil per day.

The recent cash injection of €50m followed previous cash injections of €70m last year and €207m in 2014.

More than 6,000 people have worked on bringing Corrib gas to market, with the development to sustain 175 jobs over the next 15 to 20 years.

Six wells have been drilled at the Corrib field with gas transported to the Bellanaboy Bridge Gas Terminal through a 20-inch pipeline. The Corrib project is a joint venture between Shell E&P Ireland Limited (45pc), Statoil Exploration Ireland Ltd (36.5pc) and Vermilion Energy Ireland Ltd (18.5pc.

The managing director of Shell E&P Ireland, Ronan Deasy, said at the launch in January: "As the largest energy investment in Ireland, the development will not only strengthen our country's security of supply but will continue to bring many benefits to Erris, Mayo and Ireland."

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