Eni takes stake in Providence licence

MULTINATIONAL OIL and gas company Eni has boosted its presence in Irish offshore exploration by taking a stake in the Dunquin licence operated by Providence Resources.

The Italian-based giant is taking a 40 per cent interest in the exploration licence, one of several “frontier” licences awarded by the Government last year. The licences are all close to the limit of Irish territorial waters in deep water off the west coast.

Dublin- and London-listed Providence said yesterday that Eni was taking the interest under a farm-in deal, which means it will assume some of the costs and risks in return for a share of the proceeds if commercial oil or gas is found.

Eni will take 40 per cent of the licence, while another multi-national, ExxonMobil, and Production Ireland (Offshore) Ltd will hold another 40 per cent. Providence and Sosina will keep 16 per cent and 4 per cent respectively.

Along with this, ExxonMobil, Production Ireland, Providence and Sosina will take 40 per cent of an adjacent frontier exploration licence area, with Exxon holding 36 per cent, Providence 3.2 per cent and Sosina 0.8 per cent.

Eni, which is 30 per cent-owned by the Italian government, has interests in 70 countries and a market capitalisation of more than €80 billion.