Total takes charge of licence option offshore Ireland

Total E&P Ireland has completed a farm-in to licensing option (LO) 16/27 offshore western Ireland.

This follows approval by the Minister of State at Ireland’s Department of Communications, Climate Action and Environment to the transfer of 50% equity and operatorship of LO 16/27 (Avalon) to Total.

Under the terms of the agreement, Total has agreed to pay its pro-rata share of past gross costs of around US$175,000, and 21.4% of past and future costs during the LO’s two-year term, up to a cap of US$1.33 million.

If the company and partners Providence Resources and Sosina agree to convert the LO to a frontier exploration licence, and commit to drill an exploration well, Total will pay 60% of the drilling costs, subject to a cap of US$42 million.