Sale of Lansdowne Oil & Gas on the cards

The anticipated wave of consolidation set for the international oil and gas sector could be about to hit the Celtic Sea, with Lansdowne Oil & Gas — the minority shareholder in the Barryroe field — likely to be sold.

The Dublin-headquartered firm, a 20% junior partner to Providence Resources at Barryroe, yesterday announced the launch of a strategic review of its business. While it said that the review — being undertaken to look at ways of maximising shareholder value in current difficult market conditions — would include all options, including that of continuing with current structure and strategy; management stated that a farm-down or total sale of some assets; a merger with another company or a complete sale of the business will also be considered. The latter option is the most likely outcome according to some industry commentators.

“Likely suitors will include all currently involved in the Celtic Sea looking to increase scale. It also could include any one of the various parties — especially the smaller groups — that have looked at Barryroe and would have some interest in becoming involved without having to take on the large stake held by its partner in the project,” said Job Langbroek, at Davy Stockbrokers.