Canada’s Vermilion Energy closes Corrib acquisition
Canadian producer Vermilion Energy said April 3 it had closed March 31 its previously-announced acquisition of Equinor Energy Ireland, which had held Norwegian Equinor’s 36.5% interest in the Corrib Natural Gas Project in Ireland.
The US$434mn (C$556mn) acquisition, announced in November 2021 and with an effective date of January 1, 2022, makes Vermilion Energy, with a 56.5% interest in Corrib, the largest provider of domestic natural gas in Ireland. The net purchase price has been estimated at C$200mn, after taking into account free cash flow between the effective date and the closing date and Vermilion’s estimates of European windfall taxes and how they will be implemented in Ireland.
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The Equinor Energy Ireland acquisition adds about 7,000 barrels of oil equivalent (boe)/day of low-emission European natural gas production to Vermilion’s portfolio, including from the Corrib project, which is currently producing about 115mn ft3/day (less than a third of its 350mn ft3/day capacity) or 20% of Ireland’s natural gas consumption and 100% of its domestic natural gas production. Vermilion has operated Corrib since 2018.