Providence Resources and Lansdowne Oil and Gas have signed a farmout agreement with SpotOn Energy that should see the Barryroe oil and gas field off the Cork coast go into production within three years.
The deal will see Norwegian based SpotOn, working with a consortium of partners, receive a 50% working interest in the prospect.
They will now fund, develop and produce oil and gas from the field, with plans to have a drilling rig in place by late 2022.
"The development of the Barryroe field is an exciting opportunity for the people of Ireland and the Barryroe partnership and, as production builds following the implementation of the Early Development Programme (EDP), we will begin to produce indigenous energy and petrochemical feedstocks for the Irish market," said Alan Linn, CEO of Providence.
"Indigenous production will support Irish energy security; encourage the progress of renewable technologies and deliver raw materials used in the production of many of the essential items we take for granted in our daily lives."
SpotOn Energy will fund 100% of the EDP under the deal, as well as the full development of the field.
The EDP will involve four wells being drilled as well as the installation of four floating production facilities.
SpotOn will be given right to buy 60m Providence shares once oil begins to flow from the field on a commercial basis.
Situated off the Cork coast in the Celtic Sea, Barryroe is considered one of the largest undeveloped offshore fields in Europe.
According to Providence Resources, once it is developed it is expected to contribute to Ireland's energy security.
Negotiations with SpotOn have continued for months.
"Over the coming months, we will be working with the SpotOn Team to complete the transaction; finalise the project schedule; progress the government approvals and develop the detailed drilling and facilities work programmes," said Mr Linn.
"I think Ireland and the Cork area will benefit economically from the field development and subsequent production for many years to come."