Equinor Exits Ireland Following $434M Corrib Sale
Norway’s Equinor has stopped having a business presence in Ireland following a decision to sell its non-operated equity position in the Corrib offshore gas project to Vermillion Energy.
Equinor said it reached the agreement with Vermillion for the sale of its Corrib non-operated interest on consideration of $434 million, before closing adjustment, with an effective date set at January 1, 2022.
The deal, subject to approval by partners, government, and regulatory bodies, is expected to close during the second half of 2022.
As part of the transaction, Equinor and Vermilion have agreed to hedge approximately 70 percent of the production for 2022 and 2023 and have also agreed on a contingent payment that will be paid on a portion of the revenue if European gas prices exceed a given floor level.
The deal is subject to approval by partners, government, and regulatory bodies. The sale of Corrib means that Equinor will no longer have an active business presence in Ireland, after previously deciding to withdraw from an offshore wind project in the country.
The Corrib field started production in 2015 and is located 50 miles off Ireland’s northwest coast in water depths of almost 1,150 feet. The equity gas volumes to Equinor for 2021 are estimated at around 58 million cubic feet per day.
The transaction is organized through a share sale of Equinor Energy Ireland Limited, a company 100 percent owned by Equinor. The Norwegian major owns 36.5 percent of the Corrib project, alongside Vermilion as the operator with 20 percent, and Nephin Energy with 43.5 percent.
“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,” Arne Gürtner, senior vice president responsible for the United Kingdom & Ireland, said.
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