Barryroe could be producing oil in ‘within 3-4 years’

First oil production from the Barryroe oil field, off the coast of Cork, could start within “three to four years”, according to its majority shareholder, Providence Resources.

Providence’s chief executive Tony O’Reilly jr told shareholders at the company’s AGM in Dublin yesterday that Barryroe — which has an estimated 1bn-1.6bn barrels of oil in place with 300m barrels of recoverable oil — was still “several years” away from first oil actually being brought to shore.

However, he was more specific after the meeting, saying the high-profile asset could be producing within three to four years.

Last September, the company said production could commence within two to three years.

He stressed, however, that any timeframe largely depends on the thinking of the development partner which Providence is looking to bring in to the project.

Providence currently controls 80% of the Barryroe find, with Lansdowne Oil & Gas holding the remaining 20% stake. Providence’s long-standing plan has been to farm out around 30%-40% to another partner in order to cover development and production costs.

The company has held talks with a number of interested parties, including Asian and North Sea players.

Following yesterday’s AGM, Mr O’Reilly said that the company was confident of bringing in a partner before the end of the year. It was likely that only one partner would come in; but the new equity holder would probably look to “move quickly” on developing Barryroe further.

Earlier, Providence’s technical director, John O’Sullivan, told assembled shareholders that the Barryroe farm-out was progressing “ahead of plan” and that a partner should be in place by year’s end, but added “it could be sooner, as there has been a lot of interest”.

Despite its confidence over the timeline, Providence’s management would not be drawn on whether a partner for Barryroe was in place in all but name. Mr O’Reilly said the company has “a proven track record” in forming top-class partnerships and alliances and expects to do the same regarding Barryroe.