Total has farmed into and has taken over operatorship of Providence’s Licensing Option 16/27 offshore Ireland.
The block, located 150 kilometers off the south west coast of Ireland, contains the Paleocene “Avalon” exploration prospect.
The completion of the farm-in follows the approval of the Minister of State at the Department of Communications, Climate Action and Environment of Ireland to the transfer of 50% equity and operatorship of LO 16/27 (Avalon) to TOTAL.
In June 2017, Providence announced that Providence and Sosina had signed a Farm-in Agreement (“FIA”) with TOTAL whereby TOTAL will take a 50% working interest and Operatorship in LO 16/27, subject to Ministerial approval.
Under the terms of the farm-in agreement, Total will pay its pro-rata share of past gross costs of c. US$ 0.175 million. In addition to its pro-rata share, Total will pay 21.4% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of US$ 1.33 million
In the event that the JV partners agree to convert LO 16/27 into a Frontier Exploration Licence, and a subsequent decision is taken to drill an exploration well, TOTAL will pay 60% of the drilling costs, subject to a gross well cap of US$ 42 million
With the farm-in now completed, the revised equity in LO 16/27 is TOTAL (Operator – 50%), Providence (40%) and Sosina (10%).