DUBLIN, Ireland – Total has agreed to take a 50% operated interest in a deepwater licensing option (LO) off southwest Ireland from Providence Resources and Sosina Exploration.
LO 16/27 is in 1,300 m (4,265 ft) water depth and 150 km (93 mi) offshore. Assuming approval by Ireland’s Minister of Communications, Climate Action and Environment, Total will pay its share of past costs of around $0.175 million, and 21.4% of past and future costs during the LO’s two-year term, up to a cap of $1.33 million.
If the partners apply to convert the concession to a frontier exploration license, and to drill an exploration well, Total will pay 60% of the drilling costs up to a cap of $42 million.
Providence/Sosina have also signed an option agreement that would give Cairn Energy subsidiaryCapricorn Ireland the right to farm in to 20% of LO 16/27, to be exercised within 60 days of the completion (P&A) of the partnership’s forthcoming 53/6-A well on frontier exploration license 2/14.
The payment arrangements are similar to those agreed with Total, including Capricorn funding up to $42 million of the drilling costs.
Final equity would be Total (operator – 50%), Providence (24%), Capricorn (20%) and Sosina (6%).