Oil firm dumps Irish licence as exploration gloom deepens

One of the most active exploration companies in Irish waters has dumped one of its assets.

British company Europa Oil and Gas said one of its licensing options in the Porcupine Basin, off the south-west coast, has been relinquished and it would focus on higher potential assets.

It still holds five licences in Irish waters, containing an estimated 5.7bn barrels of oil equivalent, while its flagship Inishkea prospect, near the Corrib field, holds an estimated 1.5tn cubic feet of gas.

While the Government has banned future oil-exploration work and will only award gas-exploration licences in the future, previously awarded oil licences remain open for drilling.

Europa held a 30% share of the relinquished licence option, having sold a 70% share to Scottish exploration firm Cairn Energy.

“Our exploration model is centred on potentially exposing Europa to high-reward wells, while, at the same time, minimising cost and risk,” said Europa’s interim chief executive, Simon Oddie. “This is what we are looking to achieve at...Inishkea,” he said.

Last month, Europa said it remains in talks, with potential development partners, for its offshore Ireland assets, despite an unnamed oil major walking away from the process.

“Farming out Inishkea, and our other frontier exploration licences, is just one workstream being advanced, not just in Ireland, but across our asset base in onshore UK and offshore Morocco,” said Mr Oddie.

Inishkea has been touted as a possible source of significantly reducing Ireland’s reliance on gas imports.

Mr Oddie has claimed Inishkea remains “a compelling drill target” and one that continues to attract “considerable interest from a number of potential partners.”