Business Irish

Sunday 23 September 2018

Corrib Gas Field revenue soars 40pc

The Corrib Gas Partners last year enjoyed a 40pc increase in estimated revenues to €524.4m. Stock image
The Corrib Gas Partners last year enjoyed a 40pc increase in estimated revenues to €524.4m. Stock image

Gordon Deegan

The Corrib Gas Partners last year enjoyed a 40pc increase in estimated revenues to €524.4m in spite of 31 days of lost production - mainly as a result of odourless gas getting into the system.

New annual accounts just filed by the new operator of the Corrib Gas Field, Canadian firm, Vermilion Energy confirm the 40pc jump in its own revenue share of the field last year going from C$153.3m (€96.4m) compared to $109m (€68.7m) in 2016. Based on Vermilion's 18.5pc share of the field in 2017, total estimated revenues for the entire field increased by 40pc to C$828.8m (€524.4m).

The partners enjoyed the increase in revenues in spite of the 31 days lost last September and October from a scheduled downtime and odourless gas escaping into the system.

Vermilion was able to claw back some of the lost revenues in the final quarter enjoying sales of $43.79m compared to $28.2m in the second quarter - a jump of 55pc.

The annual report states that "given the significant level of investment in Corrib, and the resulting tax pools, we do not expect to incur any current income taxes in the Irish business unit for the foreseeable future".

At the end of December, Vermilion had accumulated 'tax losses' of $1.3bn which can be carried forward against taxable income. Last year, 20 directors and key management personnel at Vermilion shared a pay pot of $25m made up of $5.1m in pay and $20.1m in share-based payments. Last July, Shell Ireland disposed of its share in the project to the Canadian Pension Plan Investment Board (CPPIB) in a strategic partnership with Vermilion in a deal potentially worth as much as €1.08bn.

As a result, Vermilion is to increase its stake to 20pc and become the operator of the project.

Irish Independent

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