In a press release issued yesterday, Equinor announced the sale of its 36.5% non-operated stake in the only producing gas field in Ireland – Corrib – to operator Vermillion. After the transaction has been completed, Vermillion will have a 56.5% interest in the field, leaving partner Nephin Energy at 43.5%.
The move by Equinor sees the company leaving operations in the country of Ireland, with the aim to re-invest the freed-up capital “elsewhere”.
In a country that still relies on gas for 30% of its total energy needs, and where only this year imported gas has risen by 16%, many in Ireland are getting concerned about security of supply. Following cessation of production at the Kinsale field this year, Corrib is the only field remaining in production across the Irish Continental Shelf. Recoverable volumes from Corrib were estimated to be 16.8 Bcm (~105 MMboe) at the start of field production.
As the Corrib gas field continues to deplete, Ireland is expected to be dependent on 80% import by the mid-2020s and over 90% by 2030, writes the gov.ie website. This paints a clear picture of rapidly increasing dependency on gas imports.
Gas from the Isle of Man?
In that light, plans to drill for gas on the Isle of Man “Continental Shelf”, as intended by company Crogga, will be followed with interest in Ireland. In case of a discovery, and subsequent production, gas may be exported to Ireland through the same pipeline as it currently imports gas from the UK.
As explained in this GeoExpro article, there are positive indications for gas in the area east of the island. BP drilled well 112/25a-1 in 1982 (see map above), targeting Triassic sandstones in an attempt to prove an extension of the Morcambe Bay field trend. Although the well proved to be water-bearing in the Triassic, sub-salt Permian sandstones contained a 50 m gas column.
Crogga operates a licence just south of the BP well and aims to further proof gas in the area through drilling the same Permian sandstones as shown by well 112/25a-1.
Given that the main pipeline supplying Ireland with imported gas through the UK is located only a small distance from the Isle of Man, one can easily see why the Irish should indeed keep a close eye on developments in that part of the world.
HENK KOMBRINK
