Providence Resources strike deal with Petronas
Providence Resources, the Irish oil and gas exploration company, will increase their equity stake to 100% in the standard exploration licence (SEL) 2/11, located offshore Ireland.
The company has said it would take a 50% interest from its partner, PSE Seven Heads Limited, which is a wholly owned subsidiary of PSE Kinsale Energy Limited. Worth noting, Kinsale is a subsidiary of Petronas, Malaysia’s largest oil and gas company.
According to Providence, the transfer on interest is subject to approval from the Minister for Communications, Energy and Natural Resources.
Commenting on the announcement, Tony O’Reilly, Chief Executive of Providence said: “The planned increase in equity in SEL 2/11 demonstrates our ongoing commitment to the Kish Bank Basin, where we are seeking to advance our planned exploration activities.”
Providence did not specify if the transaction included any fee to be paid to Petronas.
To remind, this is the second deal Providence has reached with Petronas’ Kinsale in as many days.
The company, through its subsidiary Exola, on Thursday entered into an exclusive option agreement with PSE Kinsale Energy Limited over the southern portion of Offshore Petroleum Lease 1 (OPL 1), offshore Ireland.
Under the agreement, Exola will have the right to earn a 60% working interest in the southern portion of OPL 1, through the 100% funding and drilling of an exploration well in the Option Area. The area is immediately adjacent to the Barryroe oil field in the North Celtic Sea Basin.