ONE of the three partners in the Corrib gas-field located off Achill Island, Saga Petroleum, is seeking buyers for part of its share in the field for about $28 million (€30.8 million).
The Norwegian company plans to sell 10 per cent of its current 40 per cent stake in Corrib and claims that between 12 and 14 companies are interested in buying into the field, which has the potential to be one of the largest finds ever made in Irish waters.
If market valuations of the Saga stake are correct, the Corrib field could be worth approximately $280 million (€254 million).
The valuation of Corrib is based on potential reserves of some 1.2 trillion cubic feet of gas and a sales price of 16p a therm.
The other two partners in the project are Enterprise Oil, which has 45 per cent, and Statoil, with 15 per cent. The report of the Saga sale was first carried in the international oil and gas newspaper, Upstream. .
In a separate development, Enterprise Oil has disclosed that it will undertake test drilling in May at another well near Corrib called Shannon, which may be as large as Corrib.
The general manager for Enterprise Oil Ireland, Mr John McGoldrick, said the well was 8 kilometres from Corrib and was located in similar rock formations. "We have some information on it already, but more tests need to be done," he said.
The Shannon well is part of the same licence as Corrib and Mr McGoldrick said other wells may be drilled at a later stage.
He added that the results of testing on Corrib should be concluded at the end of July and the process of selling the gas will then begin. Among the interested buyers are Bord Gais, the ESB and several power generators.
Testing at the Shannon well may continue into next summer as virtually no work can be done during the winter.
One of the partners in Corrib, Statoil, is close to agreeing a deal to become a partner with the ESB in its new £200 million gas fired station in Ringsend, Dublin. This would be the first time the ESB has invited another party to join it in a power station venture in the Republic.
The main element of the deal is that Statoil will provide the gas for the power station which will generate 400 megawatts of power. The deal is expected to be signed "within weeks".
