Corrib partner Statoil’s Irish losses treble to €126.5m

PRE-TAX losses at one of the partners in the €2.5 billion Corrib gas field, Statoil, increased more than three-fold last year to €126.5 million.

The chief factor behind the losses at Statoil Exploration Ireland Ltd (SEIL) was a €67m impairment charge relating to the field.

The Norwegian-owed energy giant has a 36.5% share in the field, with Shell owning 45% and Canadian company Vermilion owning the rest.

Earlier this year Vermilion admitted that it would be 2014 before gas would be commercially available from the field.

The Corrib gas partners are now eight years behind the initial target to start generating revenues from the field.

Enabling works have commenced on the tunnel and tunnelling will not commence until next year with Vermilion stating that the onshore pipeline will not be complete until 2014.

The filings for SEIL — whose principal activity is the development of the Corrib gas field — show that losses at the company increased by 271% last year from €34.1m to €126.5m.

The Dublin-based company’s accumulated losses on the venture to date amount to €377.1m at the end of December last year.

The filings show that the company received a cash injection last year of €24.8m to bring its share capital up to €299m.

In relation to the €67m impairment, a note states that it is calculated on production volumes that are based on detailed data of the field and take into account development plans for the field by management as part of the long term planning process up to 2009.

A note states that the company had net operating losses amounting to €1.1bn “that are available indefinitely to offset against future tax profits”.

The figures show that SEIL’s value of its field under development at Corrib was €728.3m at the end of December last.

The filings show that the SEIL operating loss increased 31-fold last year going from €3m to €94.3m with the €67m being the main cost.

Interest payments and similar charges totalling €32m increased the company’s loss to €126.5m.

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