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    Providence Extends Irish Barryoe Farm-out Talks

Summary

The exclusivity period for negotiations has been extended until November 30.

by: Joe Murphy

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Providence Extends Irish Barryoe Farm-out Talks

Irish developer Providence Resources said on October 30 it was finalising the commercial terms of a farm-out deal for the offshore Barryroe oil and gas field with SpotOn Energy. But it added that the pair had agreed to extend the exclusivity period for talks until November 30. 

SpotOn is leading a consortium comprising Schlumberger, Aker Solutions, AGR, Maersk Drilling, Keppel FELS and Aibel that entered negotiations in July to farm into Barryroe and fully fund an early development scheme. The exclusivity period for discussions had been due to expire on October 31. 

"Despite the ongoing Covid constraints, we have made excellent progress in agreeing farm-out terms, for an interest in Barryroe, to SpotOn Energy, and are working very closely with them to finalise the agreement documentation," Providence CEO Alan Linn said. "It is important that the partnership agreements and work programme are comprehensively documented and this process requires some additional time to complete."

Barryroe is primarily an oil project, but the field could also flow up to 120mn ft3/day of gas, Linn told NGW in August.