Irish oil & gas explorer Petrel Resources is in arbitration with the Australian energy company Woodside Energy due to alleged breach of contract related to a seismic program over a license offshore Ireland.
Petrel and Woodside were partners in two Irish Atlantic licenses, FEL 3/14 and FEL 4/14, after Woodside farmed into these Porcupine Basin licenses in 2013 by taking 85% interest. Petrel maintained a 15% interest in each license and was carried through initial work, seismic and one well.
Last year, Woodside conducted 3D seismic over FEL 3/14 and, according to Petrel, results are awaited. The program was completed last September over c. 2,392km2 of the northern Porcupine Basin by PGS’ Ramform Vanguard survey vessel.
However, according to Petrel’s statement on Monday, following an analysis of data relating to FEL 4/14 Woodside decided to drop this license without completing a seismic program. Petrel believed this to be a breach of an agreement to conduct 900 km2 of seismic over the area. Both sides have been unable to reach agreement over the seismic issue therefore, arbitration is underway in London.
At the same time Woodside announced it was not proceeding with FEL 4/14, it offered Petrel a carry on new ground obtained by Woodside in the 2015 licensing round. Petrel believe they had an agreement but Woodside felt unable to complete. This too will be part of the arbitration proceedings, Petrel stated.
“We hope for a favorable outcome of arbitration. Woodside are a good partner with excellent technical skills but the board of Petrel have a responsibility to almost 2,000 shareholders,” Petrel concluded.
Offshore Energy Today Staff