Providence agrees deal on oil licence farm out

PROVIDENCE Resources – the Irish oil and gas exploration company headed by Tony O’Reilly Jnr – is understood to have finalised a significant farm-out agreement regarding its newest licence in the Celtic Sea.

The deal seems set to see the London-based oil company, Nautical Petroleum, take a 40% stake in the Baltimore heavy oil discovery, off the Cork coast, in return for investing in and carrying out a focused work programme on the development feasibility of the discovery.

Providence would then retain a 60% holding in the licence, which it was awarded just nine weeks ago. The Irish company is expected to formally announce the deal today.