Shell completes Corrib as partner confirms €243m loss
Published 19/09/2015 | 02:30
Shell Ireland has declared that the on-site work is now complete for the gas to flow from the Corrib Gas field.
Shell E&P Ireland confirmed that from a technical point of view, production of gas can now start - 19 years after gas was discovered in the gas field off the coast of Mayo.
However, the Corrib Gas Partners cannot commence production until two separate permits are granted by the Environmental Protection Agency (EPA) and the Dept of Communications, Energy and Natural Resources.
The Shell partners had stated earlier this year that gas would flow by mid-2015 and a spokesman for Shell E&P Ireland yesterday stated that the company "expects that gas will flow before the end of 2015".
Confirmation of the completion of works on the scheme coincides with one of Shell's partners on the project, Statoil revealing that its Irish exploration arm last year recorded pre-tax losses of €243.79m.
The loss at Corrib gas partner, Statoil Exploration (Ireland) Ltd arises from an impairment charge of €226m and is against the background of repeated delays in the completion of the project.
Total losses at the Irish exploration arm of Statoil now total €843m. The firm's shareholder funds stood at €286.39m.
A note attached to the accounts states that the directors consider that revenues from the development of the field will be sufficient to make the company profitable in the future.
The overall projected spend of €250m on the project this year will result in its overall costs to top €3.6bn in 2015.
Commenting on the completion of the works, MD of Shell Ireland, Ronan Deasy, said that the "important milestone has been achieved through the hard work and dedication of very many people over an extended period".