Norway's Equinor has agreed to sell its stake in the Corrib gas field to partner Vermilion Energy Inc., the Norwegian oil firm said on Nov. 29, putting an end to its activities in Ireland.

Equinor and Vermilion have agreed to a consideration of $434 million for the sale, before closing adjustment, with an effective date set Jan. 1, 2022.

The transaction is organized through a share sale of Equinor Energy Ireland Ltd., a company 100% owned by Equinor ASA. Equinor owns 36.5% of the Corrib project, alongside Vermilion (the operator with 20%) and Nephin Energy (43.5%).

The Corrib field started production in 2015 and is located 83 km off Ireland’s northwest coast in water depths of almost 350 m. The equity gas volumes to Equinor for 2021 are estimated at roughly 58 MMscf/d.

Equinor and Vermilion have agreed to hedge some 70% of the production for 2022 and 2023, and have also agreed a contingent payment that will be paid on a portion of the revenue if European gas prices exceed a given floor level, Equinor said.

“The Corrib field has been an important non-operated project for Equinor for several years. We have taken the decision to sell the asset to focus our portfolio, in line with our strategy, to capture value from the current strong market and to free up capital that we can re-invest elsewhere,” Arne Gürtner, senior vice president responsible for the United Kingdom & Ireland, said.

The sale of Corrib means that Equinor will no longer have active business presence in Ireland, after also deciding to withdraw from an early phase offshore wind project in the country.

The deal is subject to approval by partners, government and regulatory bodies.

Reuters contributed to this article.

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