Total subsidiary Total E&P Ireland has completed a farm-in deal with Providence Resources and Sosina Exploration on licensing option (LO) 16/27, containing the Avalon prospect, in the southern Porcupine Basin, offshore Ireland.
The deal sees Total gain a 50% stake in LO 16/27 from Providence and take over operatorship. Providence announced the agreement in June this year.
Total will pay its pro-rata share of past gross costs of around US$0.175 million, as well as 21.4% of the past and future costs during the two-year term of LO 16/27, up to $1.33 million.
If the JV partners agree to convert LO 16/27 into a Frontier Exploration License and drill an exploration well, Total will pay 60% of the drilling costs, up to $42 million.
Following the deal, Providence holds 40% interest in the LO and Sosina holds 10%.
In June, Total announced it would enter options to acquire interests and operatorships in southern Porcupine Basin licenses.
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