Providence to agree gas deal with Exxon Mobil

A MAJOR deal between Dublin oil and gas exploration company Providence Resources and the world’s largest oil company Exxon Mobil is expected to be announced today.

The deal will see the companies begin drilling for natural gas off the west coast of Ireland.

It is believed Exxon Mobil will co-operate with Providence, a company part-owned by Anthony O’Reilly, and drill in the Dunquin field about 200 kilometres off the coast.

Sources believe Exxon Mobil will spend up to $50 million (€42m) on the venture and hold an 80% stake in the project.

Some analysts say the Dunquin field could eventually be worth up to $25 billion (€21bn).

Meanwhile, it is expected that Providence Resources will release its full-year results for 2005 next month.

The company, which is quoted on AIM and the Irish Enterprise Exchange (IEX), has already reported a year-on-year rise of 23% in turnover for the first half of 2005.

Mr O’Reilly said late last year that shareholders could look forward to an interesting year in 2006.

He said with a number of new rigs being built in Irish waters and international industry interest in Ireland as a drilling location increasing all the time, new opportunities could arise.

Providence’s main focus areas are Ireland (Celtic Sea, St George’s Channel and the Porcupine Basin/Spanish Point field off the west coast), Britain and Nigeria, where it holds a 6.3% interest in the Aje Field.