Exploration company Petroceltic has signed a farm-in agreement with Vega Oil to increase its interest in the offshore Italian permit B.R268.RG from 40 per cent to 70 per cent.

Petroceltic said it is to assume operatorship of the permit, including the Elsa discovery, and will pay 100 per cent of the drilling and completion costs for the proposed Elsa-2 well.

“The transfer of operatorship and the opportunity to increase Petroceltic’s interest in B.R268.RG to 70 per cent demonstrates our commitment to Italy,” said CEO Brian O’Cathain.