Vermilion Energy Inc. has assumed operatorship of the Corrib natural gas project offshore Ireland following the close of Shell Overseas Holdings Ltd.’s sale of its 45% interest in the project to Nephin Energy Holdings Ltd. (NEHL), a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB). NEHL has acquired 100% of Shell E&P Ireland Ltd., which holds 45% interest in Corrib (OGJ Online, July 7, 2017).
CPPIB plans to transfer Shell E&P Ireland along with a 1.5% working interest to Vermilion. The estimated purchase price after adjustments is €6 million.
Natural gas production from the field in 350 m of water 83 km offshore northwestern Ireland began in December 2015 (OGJ Online, Dec. 30, 2015). At peak production, Corrib is expected to reach 260 MMscfd of gas, or 45,000 boe/d. At peak levels, the potential exists to meet as much as 60% of Ireland’s gas demand.
Following the transfer to Vermilion, ownership in Corrib will be as follows: Vermillion, operator, 20%; NEHL, 43.5%; and Equinor, 36.5%.
