Vermillion Energy Trust acquires Corrib development interest
June 24, 2009
Vermilion Energy Trust has acquired Marathon International Petroleum Hibernia, which holds Marathon Oil's 18.5% interest in the Corrib natural gas development offshore Ireland.
Offshore staff
HOUSTON-- Vermilion Energy Trust has acquired Marathon International Petroleum Hibernia, which holds Marathon Oil's 18.5% interest in the Corrib natural gas development offshore Ireland. The transaction is expected to close in the second half of the year, subject to government and regulatory approvals.
First gas from the Corrib develop is expected between late 2010 and late 2011, according to Marathon. Pursuant to the agreement, Vermilion will assume its share of future capital expenditure obligations in order to reach first gas, anticipated to range up to $300 million net to the acquired interest. These capital costs are primarily for the completion of the facilities necessary to bring the field onstream. The transaction will have an effective date of Jan. 1, 2009.
Marathon's total net proved reserves associated with the Corrib development as of year-end 2008 were 98 bcf of natural gas (16.4 MMBoe). Shell serves as the operator holding 45% interest; Statoil Hydro holds 36.5% working interest.
