US oil explorer Kosmos to drops three Irish licences

US-listed oil and gas explorer, Kosmos, is pulling out of its three joint ventures off the Irish coast, its partners confirmed on Tuesday.

Kosmos is withdrawing from three licences in the Porcupine Basin, to the west and southwest of Kerry, where it has shared interests with Europa Oil & Gas and Antrim Energy.

Europa confirmed the news in a statement and also said that it intends to apply to the Department of Communications, Energy and Natural Resources, to be allowed assume 100 per cent control of the two licence areas it shares with Kosmos.

Antrim, which has a 25 per cent stake in one licence with Kosmos, also confirmed that its partner had informed the company of its plan to withdraw from operation.

The company's chief executive, Anthony Potter, acknowledged that he was "disappointed" with the decision.

The news comes less than a week after the Government said that it had receivecd 43 applications from exploration companies in its 2015 round.

It also follows an announcement by Irish explorer, Providence, whose interests include the Porcupine Basin, that it has signed an exploration agreement with multinational Schlumberger.

Kosmos gave no reason to its partners for the move, but industry commentators suggest that its priorities have shifted away from the Porcupine Basin and Ireland.

It has a recent discovery in Mauritania and plans to begin drilling in some of its African interests, which, like its Irish licences, lie along the Atlantic margin.

Europa's chief executive, Hugh Mackay, also expressed disappointment at the Kosmos move but said he appreciated its need to rationalise its portfolio.

The company’s statement points out that it has benefitted from $15 million worth of exploration surveys carried out across both blocks, mainly at the expense of Kosmos.

Mr Mackay also noted that drilling costs have halved as demand has dropped in light of the collapse in oil prices.

“We are very confident in our technical and commercial work and look forward to updating the market as we take these licences forward,” he said.