After securing exclusivity for the farm-out of Providence’s Barryroe field off Ireland through a $3 million investment, SpotOn Energy took a new step in the farm-in process.
According to a statement from Providence from Monday, SpotOn Energy put in place binding term sheets with the six consortium members participating in the Barryroe field appraisal and development project.
Providence added that the names of the consortium members would be announced separately.
The company is now working with SpotOn energy and the members of the consortium to finalise the farm-out work programme. On finalisation of the farm-out agreement, SpotOn Energy will manage the Barryroe development, working with the consortium and providing “ innovative project management and delivering value for all partners ”.
Providence claims that the consortium, described as “ blue chip ”, comprises industry service and supply companies with “ extensive experience undertaking projects similar in nature to the Barryroe oil and gas field ”, which is a shallow water conventional development located in Exploration Licence SEL1/11 offshore Ireland.
Providence Resources CEO Alan Linn said: “ Barryroe is one of the largest undeveloped oil and gas fields in Europe and, having worked with many of the consortium companies over the years, I am confident that we are introducing a high-quality core project development team with both the capability and capacity to deliver a “world-class” project.
“ When fully developed, the Barryroe Field can provide Ireland with locally produced long term energy security. This will significantly increase the flexibility Ireland has to manage the transition to carbon-neutral by 2050 by supporting the local economy and contributing to energy supply stability, both of which are essential for the full benefits of renewable energy sources to be realised ”.
To remind, a term sheet agreement signed between Providence and SpotOn back in early April gave the latter a period of exclusivity until 31 October 2020. During that time, SpotOn said it would seek to agree to an appraisal work program for the Barryroe field and develop commercial terms to conclude a binding farm-out agreement within that period.
SpotOn Energy is a Norwegian offshore oil and gas field development company, registered in the UK. The company has experience designing and constructing semi-submersible drilling rigs for North Sea deployment and also in the design, development, and asset integrity management of offshore facilities.