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Firm pays €196m for Corrib share

CORRIB gas partner Vermilion expects to pay out an additional €95m to Marathon Oil to complete the purchase of its 18.5pc share of the gas field off Mayo.

This brings the total the company has had to pay to €196m for its share in the gas field off the northern part of the Co Mayo coastline.

In the Canadian company's annual report, it states that over the next two years, the Corrib project and other Vermilion exploration project "will require a significant capital investment by Vermilion".

The annual report outlines that the Corrib gas partners look forward to "completing this strategically important project and delivering the gas to Ireland".

"At peak production, Corrib gas is expected to supply up to 60pc of Ireland's natural gas needs and is consequently expected to play an important role in Ireland's energy security in the years ahead," it said.

The accounts show that the company recorded a €4.9m loss last year on its Irish operations after a €3.1m loss in 2009.

"As such, Vermilion's fund flows from operations may not be sufficient during this period to fund cash dividends, capital expenditures and asset retirement costs," it said. "Vermilion currently intends to finance any shortfall primarily with debt."