Enterprise Oil has resumed its drilling programme at the Corrib field off the coast of Co Mayo yesterday and is planning to spend up to £20 million over the next five months testing the field.
The Corrib field has the potential to be one of the largest discoveries ever made in Irish waters and gas from the field may be used to replace the dwindling reserves at the Kinsale Head field off the coast of Co Cork.
Enterprise Oil and its two partners in the venture - Saga Petroleum and Statoil - expect the first set of results from the well to be available in July.
Enterprise Oil is also planning to test a well located nearby the Corrib field, called Shannon, which also has promising potential, according to the company. The general manager of Enterprise Oil, Mr John McGoldrick, said the Shannon discovery was part of the same licence as the Corrib field and was located in similar rock formations.
He said the company was currently considering a number of locations to build a pipeline to bring the gas ashore. The likely cost of this is £150 million and the same pipeline would be used if the Shannon field also produces gas.
The progress of the drilling programme is dependent on weather and after September the testing will have to stop due to the dangerous conditions at that time of the year.
The value of the Corrib field will be disclosed soon when one of the partners in the project Saga Petroleum sells part of its stake. The Norwegian company plans to sell at least 10 per cent of its current 40 per cent stake in Corrib and claims there are several interested buyers.
The bids are currently being assessed and when an announcement is made the market valuation of the Corrib field will be revealed. The owners of the Kinsale Head field, Marathon Petroleum, is understood to be among the bidders.
Mr McGoldrick said the company is currently assessing how it would sell the gas and it was talking to several parties. Bord Gais has already stated its wish to sign a contract with Enterpise Oil if the Corrib field is proved to be a major discovery.
