Malaysian oil giant Petronas has, through its subisidary PSE Kinsale Energy Limited, entered into a farm-in deal for an offshore block in Ireland.
According to Lansdowne Oil & Gas, a party in the transaction, Kinsale Energy will acquire an 80% stake and become operator of SEL 4/07 block, offshore Ireland.
In return, Kinsale Energy will pay all of the costs of drilling a well on the Midleton prospect and fund Lansdowne’s share of the costs of any testing program up to $ 2.5 million.
The completion of the farm-in agreement remains subject to Irish Governmental approval.
Lansdowne CEO Steve Boldy said: “We are delighted to welcome Kinsale Energy to Licence 4/07 and look forward to drilling the Midleton gas prospect. Kinsale Energy’s team has a wealth of operating experience and has been producing gas safely from the Kinsale gas field and its satellites since 1978.
“Securing a farm-in partner for Midleton is a critical first step to delivering our objective of a multi-well programme in the Celtic Sea which, in addition to exploration wells, we expect to also include further appraisal/pre-development drilling on the Barryroe oil field”.