CALGARY – Vermilion Energy (TSX:VET) says the Corrib offshore natural gas in Ireland began producing for the first time on Wednesday.
The Calgary-based company expects output to rise over six months and Vermilion’s share will peak at 58 million cubic feet per day, the equivalent of 9,700 barrels per day of oil.
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Vermillion has an 18.5 per cent interest in the Corrib project, which is a joint venture with Shell E&P Ireland Ltd. (45 per cent) and Statoil Exploration Ireland Ltd. (36.5 per cent).
It says the Corrib field — 83 kilometrs off the coast, beneath 350 metres of water — has the potential to meet up to 60 per cent of Ireland’s gas needs at peak production.
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The gas will be priced against a U.K. benchmark and add to Vermilion’s European production, which will account for 30 per cent of the company’s total volumes in 2016.
“Corrib will be a significant contributor to both our 2016 and 2017 production growth and generate meaningful free cash flow for the company,” Vermilion chief executive Lorenzo Donadeo said in a statement.
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