Total makes final payment on Irish offshore licence

Total news
Total news

Irish oil explorer Providence Resources said today that Total had made final payment on a farm-in deal for a licence.

In June, Providence and project partner Sosina announced the agreement with Total for licence LO 16/27, 150kilometres off the south-west coast.

Later that month, Providence said Total had made a first payment of $20.25million.

It has now stumped up the second and final payment totalling $6.75million.

The transaction gives Total 50% of the licence, as well as the operatorship, Providence will have 40% and Sosina will have 10%.

Prior to the deal, Providence had 80% and Sosina was on 20%.

Providence’s share of the first payment from Total comes to $16.2million. It gets $5.4million of the final payment.