Page 18 - Euroil Week 44 2020

EurOil PROJECTS & COMPANIES EurOil

Providence extends deadline for

Barryroe farm-in deal

IRELAND DUBLIN-BASED Providence Resources has agreements and work programme are compre-
agreed to extend the exclusivity period for nego- hensively documented and this process requires
Shares in Providence tiations on a farm-out deal with SpotOn Energy some additional time to complete.”
were down 12% by for the Barryroe oil and gas field in the Atlantic Shares in Providence were down 12% by early
early afternoon trading Ocean. afternoon trading on October 30, while stock
on October 30. Providence reported on October 30 that it in its London-listed partner at Barryroe, Lans-
was still finalising the commercial terms of the downe Oil, was down 3.9%.
deal, which will see a consortium led by Spo- Barryroe was found by Providence in 2012
tOn fully cover the cost of an early production and represents Ireland’s largest offshore oil dis-
scheme. The other members of the group are covery. It is estimated to comprise nearly 350mn
Schlumberger, Aker Solution, AGR, Maersk barrels of oil equivalent (boe).
Drilling, Keppel FELS and Aibel. These contrac- Providence has been seeking a farm-in part-
tors will provide services in lieu of investment. ner for several years, with two potential deals
The exclusivity period for talks had been due collapsing in 2015 and 2018. The latter agree-
to expire on October 31 but has been extended ment was with China’s APEC, which failed to
until November 30, Providence said. The deal come up with the necessary funds in time to
was first announced back in July. complete the transaction.
“Despite the ongoing [coronavirus] COVID Barryroe as an oil-focused project but Prov-
constraints, we have made excellent progress in idence wants to expand its scope to include gas.
agreeing farm-out terms for an interest in Bar- The company has pitched the field as a means
ryroe to SpotOn Energy, and are working very of ensuring Ireland’s energy security. Ireland’s
closely with them to finalise the agreement doc- largest gas field Corrib is in decline, leaving the
umentation,” Providence boss Alan Linn said in country increasingly dependent on gas imports
a statement. “It is important that the partnership from the UK.™

Neptune reports first gas at German field

GERMANY NORTHWEST Europe-focused Neptune Norwegian, UK and Dutch waters of the North
Energy has reported first gas from the Adorf Sea, although it is also active in Germany, Alge-
Neptune also cut its field it recently discovered in north-western ria, Egypt, Australia and Indonesia.
production guidance in Germany.
light of lengthy repairs Initial tests at the Carboniferous development Output guidance
at Hammerfest LNG were positive after the drilling of the AdorfZ15 Neptune warned on October 27 that following
following a fire in late appraisal well, Neptune said. Subsequent pro- a fire at the Hammerfest LNG project a month
September. duction tests yielded flow rates of up to 1,700 earlier, where it works as a partner, it had low-
barrels of oil equivalent per day (boepd). ered its 2020 production guidance to 140,000-
“The result of the AdorfZ15 well underlines 145,000 boepd, down from 145,000-160,000
the great potential for future gas production in boepd previously.
this region,” Neptune’s managing director in The 5.6mn tonne per year (tpy) Hammerfest
Germany, Andreas Scheck, said in a statement. LNG could remain offline until October 1, 2021,
“It is one of the most promising gas discoveries its operator Equinor recently warned, while the
in Germany in recent years.” facility is being repaired. Police, Norwegian
The well was sunk to a depth of 3,500 metres safety authorities and Equinor are all investigat-
in February, and has since been tied to a gas pro- ing the cause of the fire.
cessing plant. Neptune first reported the Adorf Neptune said its loss of revenue would be
discovery in April, along with the Ringe oil find. recovered through business interruption insur-
Neptune operates Adorf with a 67% stake, ance, and it will also file insurance claims for its
while Germany’s Wintershall Dea serves as its share of repair costs. The outage at Hammerfest
joint venture partner. The former entered the LNG will be partly offset by new projects coming
German oil and gas production sector when on stream in Norway and Indonesia, Neptune
it acquired the upstream business of France’s said. The company will provide an update on
Engie. production when it announces its third-quarter
Neptune’s main operations are in the results on November 18. ™

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