Drilling starts at Dunquin prospect

Drilling activity has formally started at the Dunquin exploration prospect off the Kerry coast.

Operated by joint-largest shareholder, oil giant ExxonMobil, the Porcupine Basin-based prospect — located approximately 150km off the coast of Kerry — has long-since been heralded as one of the high potential oil prospects in Irish waters.

ExxonMobil holds a 27.5% stake in the prospect, with the Dublin-headquartered Providence Resources one of the junior partners on the project. Italian energy giant, Eni also holds a 27.5% stake, with Spanish oil and gas company, Repsol holding a 25% equity interest.

Providence has a 16% stake, with London-based explorer Sosina holding the remaining 4%.

The Porcupine Basin has been talked up as an exciting new play in Irish waters, but ExxonMobil’s European exploration director, Kevin Biddle struck a slight note of caution yesterday.

“Success in frontier areas — such as the southern Porcupine Basin — is far from guaranteed, but a positive outcome has the potential to deliver significant industrial, social and economic benefits to Ireland,” he said.

However, the commencement of work has been heartily welcomed by Providence, with chief executive Tony O’Reilly Jnr saying: “This is a landmark well, given that it is the first to be drilled in the central part of the deep-water southern Porcupine Basin and is designed to test a new and potentially material lower cretaceous carbonate exploration play concept.”

As previously reported, the Eirik Raude rig is in place, with drilling operations expected to last for “several months”.