Corrib Gas Field Sale Agreed

Junior Energies Minister Conor Lenihan has welcomed a new company into the Irish petroleum market.

The move follows the sale of Marathon Petroleum Hibernia Limited's 18.5% interest in the Corrib Gas Field to Vermilion Energy Trust.

Vermillion Energy Trust is a Canadian based international energy producer with operations in Canada, Europe (France and the Netherlands) and Australia.


The companies closed the transaction last Thursday.

Mr Lenihan said that the final sale proceeds will range between $235m and $400m, subject to the timing of first commercial gas from the Corrib Gas Field.

Shell E & P Ireland Ltd said it expects first gas to occur during the period between late 2010 and early 2011.

Based on existing published data in relation to the potential size of the Corrib Gas Field and taking current gas prices, it is estimated that Corrib could result in a tax take for the State in the order of €1.7bn.

(PR/JM)