Norwegian oil and gas company Equinor has agreed to sell its stake in the Corrib offshore gas project in Ireland to the field’s existing operator, Vermilion Energy.

The deal, which is subject to approval by partners, governments and regulatory bodies, will see Vermilion increased its operated interest in Corrib to 56.5 per cent.

Vermilion acquired the Corrib gas project in 2018 when former operator Shell disposed of its shareholding to the Canadian Pension Plan Investment Board in a partnership with the Canadian energy company.

Equinor, formerly Statoil, had held a 36.5% state in the Corrib project, alongside Vermilion (the operator with 20%) and Nephin Energy (43.5%).

Equinor said that the sale of Corrib means that it will no longer have an active business presence in Ireland, after also deciding to withdraw from an early phase offshore wind project.

Earlier this month, Equinor pulled out of a €2 billion wind energy project in Moneypoint, Co Clare with the ESB.

Industry observers attributed to delays in establishing the new Maritime Area Regulatory Authority (MARA).

MARA is central to a new legislative structure for offshore planning under the Maritime Area Planning Bill before the Oireachtas.

The Corrib field started production in 2015 and is located 83 km off the Mayo coast in water depths of almost 350 meters.

"Equinor and the buyer have agreed a consideration of USD 434 million, before closing adjustment, with an effective date set at 1 January 2022,”Equinor said in a statement today.

“ As part of the transaction, Equinor and Vermilion have agreed to hedge approximately 70% of the production for 2022 and 2023, and have also agreed a contingent payment that will be paid on a portion of the revenue if European gas prices exceed a given floor level," Equinor said.

"The Corrib field has been an important non-operated project for Equinor for several years. We have taken the decision to sell the asset to focus our portfolio, in line with our strategy, to capture value from the current strong market and to free up capital that we can re-invest elsewhere,” Equinor’s senior vice president for Britain and Ireland Arne Gürtner said.

#Corrib - Partners in the Corrib Gas Project in the West of Ireland face a bill of nearly €3.4 billion before the end of 2014 - due in part to the pipeline plans falling foul of An Bord Pleanála, as The Irish Times reports.

Some €380 million will be spent next year - and an estimated €300 million more in 2014 - on completing the construction of a 5km tunnel mandated by Ireland's planning authority over safety concerns regarding half of the project's proposed overground pipeline.

Originally set to flow in 2003, the controversial gas field project will be at least 12 years behind schedule when production is ready to begin.

The Irish Times has more on the story HERE.