Providence Resources CEO Tony O’Reilly has stepped down from the position and has resigned from the board and all subsidiaries with immediate effect.
The company said on Friday that the board had initiated a process to identify and recruit a new Chief Executive Officer to lead Providence in its next phase of development.
According to the company, O’Reilly has agreed to work with the board, to the extent required, until the end of January 2020 to ensure an orderly transfer of his responsibilities.
In the interim, his executive functions will be assumed on a temporary basis by Pat Plunkett, Chairman.
Pat Plunkett, Chairman of Providence, commented: “Since the foundation of the company, Tony has been the main driver behind the development of the business and has been passionate in promoting the company’s role in oil and gas exploration in the Irish offshore sector. Over the years, Tony led the company into partnerships with some of the world’s leading energy companies including ExxonMobil, Eni, Chevron, Repsol, Petronas and Total.
“A major milestone during his tenure at Providence was the successful drilling and testing of Barryroe located in the North Celtic Sea Basin which has provided the company with a world class development asset which is capable of providing significant shareholder value in the coming years.
“Tony leaves by mutual and amicable agreement and has the great appreciation of the board for his management of Providence through multiple E&P cycles.”
Tony O’Reilly added: “After more than two decades with Providence, it is time for me to pursue new opportunities. I am extremely proud of all that we have achieved over the years and the key role that our collective team efforts at Providence have played in establishing interest in Ireland’s offshore arena. I wish all stakeholders in Providence every success in the years ahead, particularly with the Barryroe Project.”
It has been a difficult period for Providence Resource lately. Namely, Providence in early August decided to lay off all of its technical and support staff and downsize its board while the company was still waiting on a loan from the Chinese partner APEC. The loan was supposed to cover the costs of a survey and pre-drill well consenting for the Barryroe prospect offshore Ireland.
Following months of delays and several extensions, Providence has not received any funds from APEC for the Barryroe license. As a result, APEC at the beginning of October lost the exclusivity over the license making Providence free to pursue other partners.
In addition, Providence in late November took over operatorship of the Frontier Exploration Licence (FEL) 2/19, which contains the Avalon prospect, located offshore Ireland following an exit by French oil major Total.
Total had agreed a farm-out with Providence for the Avalon license back in 2017, taking over a 50% interest and operatorship of the project. Under the terms of this deal, Total would have paid 60% of the drilling costs, subject to a gross well cap of $42 million. However, Providence said in late November that Total had made a decision to withdraw from FEL 2/19.
Offshore Energy Today Staff
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