Exploration company Providence Resources says its subsidiary Eirgas has exercised its option to acquire 40% of the Kinsale Head area assets from Petronas International Corporation.
The assets include the Kinsale Head, South West Kinsale and Ballycotton gas fields.
The company says that after completion of the move, its daily production will double to over 4,000 barrels of oil equivalent per day. It will also see Providence gain exposure to existing and new gas storage and trading opportunities as well as providing a 'huge potential' future growth area for the firm.
'This transaction allows Providence to capitalise on our extensive operational experience offshore Ireland in combination with Petronas' proven record in gas production, storage and trading,' commented Providence CEO Tony O'Reilly.
Eirgas was established recently by Providence to invest in gas production, storage and trading opportunites offshore Ireland and the UK.
The latest move follows Petronas' purchase of a 100% interest in the Kinsale Head gas fields from Marathon Petroleum Venus, which was first announced last December and finalised in April. The deal was worth $180m.
The closing of the transaction is subject to Irish regulatory approval and is expected to be completed by no later than the end of the first quarter in 2010. The funding for the deal will be met through existing cash resources and banking facilities, the company said.
