Barryroe oil field farm-out deal may be ‘phased’

The pending farm-out deal for Providence Resources on its Barryroe field in the Celtic Sea, may materialise as a ‘phased’ agreement, initially covering appraisal work, rather than being a full development cost partnership, according to a UK-based analyst.

Last month, Providence said it had reached agreement in principle regarding a long-awaited farm-in deal at Barryroe, which would significantly add development investment and potentially halve the Irish firm’s stake in the project to around 40%.

However, the deal’s conclusion is reliant on the as-yet unnamed partner raising its own financing.