Island Oil to focus on gas storage over exploration

ISLAND Oil & Gas has said exploration investment will largely be shelved in favour of increasing its gas storage facilities.

The Dublin-headquartered exploration and production company yesterday announced it has declined to take up a farm-in option agreement it had with Lansdowne Celtic Sea Ltd regarding a number of that firm’s blocks off the south coast of Ireland.

Farm-in agreements see companies take on other firms’ drilling costs in certain projects, in return for either an equity stake in the firm or a share of the profits if the relevant mines or wells become commercially viable.