Oil drilling programmes set to increase

Oil exploration drilling programmes off the Irish coast are expected to increase materially in the coming years, according to Davy Stockbrokers, who view the entry of Kosmos Energy as a potential game changer in Irish oil exploration.

Dallas-based Kosmos — already a partner with Tullow Oil in Ghana and with Fastnet Oil & Gas in Morocco — has taken 85% majority positions in two Europa Oil & Gas licensing prospects in the Porcupine Basin off the Kerry coast in return for funding a 3D seismic study and initial drilling costs.

Davy analyst Job Langbroek said the farm-in by Kosmos is a significant moment for the Irish offshore exploration industry. He said it also reflects well on Providence Resources who have been a leading advocates of the merits of the Porcupine Basin.