Island group considers bid for Marathon

Island Oil and Gas confirmed it may consider bidding for all or part of Marathon’s gas assets off the Cork coast.

Texas-based Marathon, a major gas producer since the Seventies, owns and operates the Kinsale Head and Ballycotton gas fields off the Cork coast.

It holds 86% of the Seven Head field, also off the Cork coast, and also has a small interest in the Corrib field off the west coast.

Last week, Marathon announced its decision to undertake a strategic review of its Irish gas business.

Island said today that it is ‘reviewing the potential of participating in an acquisition of all or part of Marathon’s assets offshore Ireland’.

“The acquisition of the assets could add considerable value through cost savings and synergies to Island’s portfolio; given the proximity to Island’s Celtic Sea assets,” Island said in a statement.

With Marathon’s Kinsale field nearing the end of its commercial life, the US company has prepared part of the reservoir for use as a storage facility. Gas can be injected into the reservoir at periods of low demand and piped ashore to the Inch terminal when required.

“If an acceptable offer is not received, we will continue to operate our interests in Ireland in the same professional manner in which we have done so for the past 40 years,” Marathon company said.

Before issuing the ‘for sale’ statement last week, the company informed workers at its base in Cork. Marathon employs 61 people in Ireland.

Meanwhile, CHC Helicopter, the Canadian company that provides search and rescue services to the Irish Coast Guard, has been acquired by a US private equity group for €1bn.

It also operates a service from Cork to provide offshore oil and gas support to Marathon Oil at the Kinsale gas field.

The Canadian firm employs more than 120 people in Ireland and operates six Sikorsky search and rescue helicopters from bases in Dublin, Waterford, Sligo and Shannon.

Article courtesy of The Evening Echo