Friday 25 May 2018

Corrib revenues surge to €188m

Stock image
Stock image

Gordon Deegan

The Corrib Gas partners saw a 20pc jump in revenues to €188m in the first quarter of this year as they benefited from a jump in the price of gas over the past year.

The partners enjoyed the sharp rise in revenues compared to the corresponding quarter of last year in spite of a drop in production.

That is according to new quarterly figures provided by Canadian firm Vermilion which has confirmed the gas field may already be past peak production, stating "the initiation of decline from the Corrib gas field" has started.

The energy firm stated that this is expected and "based on numerical reservoir simulation".

The quarterly report for January to the end of March shows that production at the field was 6pc down on the first quarter of last year.

However, revenues from the gas increased by 20pc to €188m (C$289m) in the first quarter of this year on the corresponding quarter of 2017 for all of the Corrib Gas partners.

Revenues were boosted by the euro price of gas going up by 14pc between the first quarter of last year and the corresponding quarter of last year.

Last July, Shell Ireland disposed of its shareholding 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.

Vermilion is to increase its stake to 20pc and become the operator of the project.

Providing an update on the deal, the energy firm stated that it expects the deal to close in the middle of this year, ending Shell's long-standing interest.

Irish Independent

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