Providence Resources eyes investors for Barryroe push

Having applied seven months ago for Government approval to progress the asset, Providence said there is a "need for urgency in granting ministerial consent”.

The introduction of investors would reduce Providence’s current 80% stake in Barryroe.

Providence Resources has said the receipt of still-outstanding formal Government approval for the development of its flagship Barryroe oil and gas field is now a matter of urgency if the field is to start commercially producing before the end of 2026.

The Irish exploration company has also said it is talking to “a number of potential industry partners” regarding investment in the Barryroe field, which is located off the Cork coast. 

Providence has seen two potential development partner deals, regarding Barryroe, ultimately come to nothing over the past three years. 

However, it is understood that the current talks — which are at the “preliminary discussion” stage — are wholly targeted at introducing additional investment and are not aimed at finding fresh farm-out or development partners.

It is not known who Providence is talking to, but typical potential investors may include private equity, investment houses, or oil companies.

Providence’s completed strategic review of Barryroe — which is one of the largest undeveloped offshore oil and gas fields in Europe — has determined there is “an attractive economic and technical case” for developing the asset.

Providence said, as expected, a further appraisal well is needed to reduce further uncertainties and lead to a production date in 2026. That appraisal is targeted for the middle of next year and will cost around $65m (€57m). 

Providence said a successful appraisal well drill next year could “significantly” further de-risk the Barryroe project and make it attractive to other industry players and to providers of infrastructure debt finance.

The introduction of investors would reduce Providence’s current 80% stake in Barryroe, but also reduce its costs.

Providence said Barryroe can ease Ireland’s energy supply security concerns, help in Ireland’s transition to a carbon-neutral economy, and attract investment to the local Cork and broader Irish economy.

Having applied seven months ago for Government approval to progress the asset, Providence is still awaiting the go-ahead from Environment Minister Eamon Ryan.

The company said there is a "need for urgency in granting ministerial consent”.

A spokesperson for the Department of the Environment, Climate and Communications said the application for a lease undertaking for Barryroe is “under consideration”.

James Menton of Providence Resources.

Providence’s executive chairman James Menton said the company’s main focus is on securing ministerial consent “as a matter of urgency”.

The board is confident that Barryroe offers a highly valuable resource that can contribute meaningfully to Irish energy security and will have a crucial role to play in Ireland’s energy transition,” said Mr Menton.

 "This is in addition to the related economic contribution."

He said there is “an attractive economic and technical case for moving forward with our plans to optimise the value of the Barryroe field”.

Providence Resources' shares fell nearly 7% in London, despite the relatively strong update.