Corrib gas field sold

J.pilkington

Looks like Shell are selling up their 50% stake in the gas filed in Mayo for €1bn
https://www.irishtimes.com/business/energy-and-resources/shell-sells-corrib-stake-to-canadian-pension-fund-for-1-08bn-1.3151980

Report from 18mths ago puts the investment cost at €3.5bn to €4bn, 50% of this is €1.9bn for Shell
https://www.irishtimes.com/opinion/corrib-gas-was-it-worth-it-yes-1.2511410

High level this looks like a disaster of an investment for Shell.

Over the years there has been a a lot of misinformed talk how the government gave away rights to gas off Mayo and should be involved in exploration as nation. Im no expert in the field but as far as I understand drilling for gas off Ireland is like a very expensive lotto due to the dept and success %s from drilling projects which private firms have carried out is only a fraction of say the North Sea so its just not an attractive proposition.

What are other posters thoughts? Should we be glad that the government didnt take this on themselves and lose €2bn in the process (probably a lot more as private companies are usually more efficient).

Needles73

J.pilkington wrote: »

Looks like Shell are selling up their 50% stake in the gas filed in Mayo for €1bn
https://www.irishtimes.com/business/energy-and-resources/shell-sells-corrib-stake-to-canadian-pension-fund-for-1-08bn-1.3151980

Report from 18mths ago puts the investment cost at €3.5bn to €4bn, 50% of this is €1.9bn for Shell
https://www.irishtimes.com/opinion/corrib-gas-was-it-worth-it-yes-1.2511410

High level this looks like a disaster of an investment for Shell.

Over the years there has been a a lot of misinformed talk how the government gave away rights to gas off Mayo and should be involved in exploration as nation. Im no expert in the field but as far as I understand drilling for gas off Ireland is like a very expensive due to the debt and success %s from drilling projects which private firms have carried out is only a fraction of say the North Sea so its just not an attractive proposition.

What are other posters thoughts? Should we be glad that the government didnt take this on themselves and lose €2bn in the process (probably a lot more as private companies are usually more efficient).

The government has missed a trick here and should have bought in now. We have Canadian pension fund buying in for a knock down price and we get sweet FA

Allinall

Needles73 wrote: »

The government has missed a trick here. We gave Canadian pension fund buying in for a knock down price.

Would you be happy for the government to put the country's future on a 10/1 gamble?

Needles73

Allinall wrote: »

Would you be happy for the government to put the country's future on a 10/1 gamble?

How do you reckon a 10/1 gamble it's now producing with proven wells

Ipso

I thought the Shell oil field was a complete and utter gold mine for everyone but Ireland. A good while back a poster claimed that the site alone was able to fund Norway's health care system.

Ipso

Needles73 wrote: »

How do you reckon a 10/1 gamble it's now producing with proven wells

If it didn't pay of then there would be massive outrage.

Amirani

Build some much needed infrastructure or divert spending into taking a punt on a potential gas field. Are you fecking crazy?

Rumpy Pumpy

Some of the smartest engineers, data scientists and geologists in the world work on trying to figure out if a field is viable for commercial operations. Corrib is looking like a difficult upstream market, especially when Ireland is moving heavily to renewable sources. Not that gas won't feature in our future.

We were never Norway. That horseshït about our enormous reserves of oil and gas were sold on here by freeman of the land sorts, long haired socialists, and Biggins.

Ipso

Amirani wrote: »

Build some much needed infrastructure or divert spending into taking a punt on a potential gas field. Are you fecking crazy?

I also love how some people expect the government to become experts at oil & gas exploration overnight, the same government who can't design a payroll system for the health board.

Fr_Dougal

J.pilkington wrote: »

Looks like Shell are selling up their 50% stake in the gas filed in Mayo for €1bn
https://www.irishtimes.com/business/energy-and-resources/shell-sells-corrib-stake-to-canadian-pension-fund-for-1-08bn-1.3151980

Report from 18mths ago puts the investment cost at €3.5bn to €4bn, 50% of this is €1.9bn for Shell
https://www.irishtimes.com/opinion/corrib-gas-was-it-worth-it-yes-1.2511410

High level this looks like a disaster of an investment for Shell.

Over the years there has been a a lot of misinformed talk how the government gave away rights to gas off Mayo and should be involved in exploration as nation. Im no expert in the field but as far as I understand drilling for gas off Ireland is like a very expensive due to the debt and success %s from drilling projects which private firms have carried out is only a fraction of say the North Sea so its just not an attractive proposition.

What are other posters thoughts? Should we be glad that the government didnt take this on themselves and lose €2bn in the process (probably a lot more as private companies are usually more efficient).

It wasn't really a disaster of an investment for Shell, it's part of a $30bn global divestment plan. They always knew the main costs were going to be getting the field up and running, they have exited too soon to recover costs.

Statoil are retaining their 35% stake.

the whole year inn

Why leave when there's gas pumping. I would gladly take the punt on this, not as if I'm not going to stop paying taxes any time soon anyway and isn't all the hard work done, just a waiting game to recoup the investment.

SEPT 23 1989

We watch all these industries operating under our noses in our country and we are unable to do it for ourselves

It's 2017

Hotblack Desiato

Between this and the Apple data centre shenanigans, you'd need your head examined to make a large investment west of the Shannon.

Are Am Eye

I would give some of these fields away for free, but on condition that
they train up some of our people, allow them work on the project and gain
experience, and allow us to learn some of their expertise.
Then at some point in the future we may be able to capitalise or share in on a productive field in the atlantic.

the whole year inn

Hotblack Desiato wrote: »

Between this and the Apple data centre shenanigans, you'd need your head examined to make a large investment west of the Shannon.

Yea how dare we stand up for self's and let the big corporations walk all over us. How about the big corporations do things right in the first place.

dresden8

How much of that investment was Garda booze?

gctest50

dresden8 wrote: »

How much of that investment was Garda booze?

Where are all the professional crusties now ?

They could buy it all for a knockdown price

bear1

I remember there being talk of billions of barrels of oil beneath our southern shores.
Funny how that went silent.

the whole year inn

Could have Ireland bought the shares?

Allinall

the whole year inn wrote: »

Could have Ireland bought the shares?

We could have.

We also can buy shares in gold mines in Zimbabwe, salt mines in California , bull ranches in Argentina etc.

Why would we, though?

bear1

Allinall wrote: »

We could have.

We also can buy shares in gold mines in Zimbabwe, salt mines in California , bull ranches in Argentina etc.

Why would we, though?

For the ****s and giggles?

jimmycrackcorm

The government needs to buy Shells share. There's gazillions to be made in profit...

Ipso

540 beelion. I'm sure that number was well researched by the dunderf*cks.

the whole year inn

Allinall wrote: »

We could have.

We also can buy shares in gold mines in Zimbabwe, salt mines in California , bull ranches in Argentina etc.

Why would we, though?

Yea we could, Shell only sold there share. Why does every think it's such a gamble, there pumping gas.

mikeym

I heard Enda bought it

oppenheimer1

It's rarely mentioned but the real value of the Corrib gas field isn't in the actual quantity of gas per-se. The true value is that it gives Ireland security of supply.

ESRI did a study that suggested that the economy would collapse (€80bn in losses) if gas supply was lost for 3 months.

Needles73

the whole year inn wrote: »

Yea we could, Shell only sold there share. Why does every think it's such a gamble, there pumping gas.

Precisely, it's not a huge gamble at all. Proven wells, good availability/reliability. It's not the same as taking a chance on exploration,

gctest50

the whole year inn wrote: »

Yea we could, Shell only sold there share. Why does every think it's such a gamble, there pumping gas.

Why didn't shelltosea buy it if they are so keen on it ?

If they can prove there's 540 billion euro worth of gas there, should be quite a few people interested in backing them

.

Allinall

Needles73 wrote: »

Precisely, it's not a huge gamble at all. Proven wells, good availability/reliability. It's not the same as taking a chance on exploration,

So how long would it take to recoup the investment?

CeilingFly

Ipso wrote: »

540 beelion. I'm sure that number was well researched by the dunderf*cks.

I'll see your 540bn and raise it 210bn - well certainly according to whinebag Boyd Barrett who said there was 750BILLION of oil and gas - that's 25 bank bailouts.

He said corrib would be worth 20bn to shell over its lifetime.

Just slightly wrong I reckon.


Somehow I doubt if he'll be making any comments.

Needles73

Allinall wrote: »

So how long would it take to recoup the investment?

Less than 8 years i reckon

Ipso

It doesn't matter what the value is. It's the idea that some evil corporation started walking over Ireland and stole all the gas that's ridiculous. Some people aren't happy unless they're being oppressed.
Ireland doesn't have the level of industry to extract the gas, the government sure as hell can't. I don't see what the problem is as long as it's done safely. I still don't see what the professionally annoyed are getting worked up over.

the whole year inn

Ipso wrote: »

It doesn't matter what the value is. It's the idea that some evil corporation started walking over Ireland and stole all the gas that's ridiculous. Some people aren't happy unless they're being oppressed.
Ireland doesn't have the level of industry to extract the gas, the government sure as hell can't. I don't see what the problem is as long as it's done safely. I still don't see what the professionally annoyed are getting worked up over.

Some of the protests was protection of the area surrounding the plant,returning it to the way it was before they came and dug up everything. Putting the pipe underground for safety reasons.

I'm still curious why we didn't invesnt in this, Topaz still hold there share was it because they couldn't and or restrictions them owning them.

Ipso

I agree with the original farmers concerns, but it became a bandwagon for the luddites.

LeinsterDub

Needles73 wrote: »

Less than 8 years i reckon

Go on show us your working
I assume you looked at the futures market, factored in long term decline in demand etc?

Needles73

LeinsterDub wrote: »

Go on show us your working
I assume you looked at the futures market, factored in long term decline in demand etc?

Nope to my working but I worked on project in the past. Seen the well data and have a fair idea of throughput

Aristotle145

SEPT 23 1989 wrote: »

We watch all these industries operating under our noses in our country and we are unable to do it for ourselves

It's 2017

Yes Ireland are one on the biggest in maritime and offshore industry:rolleyes:

ethical

Why didnt the Irish government buy this Corrib Project back from Shell? At least all the work is done and the product could be used to finance various projects around the country..................

Aristotle145

ethical wrote: »

Why didnt the Irish government buy this Corrib Project back from Shell? At least all the work is done and the product could be used to finance various projects around the country..................

And who is going to run it.?politicians?

Ubbquittious

Rumpy Pumpy wrote: »

Some of the smartest engineers, data scientists and geologists in the world work on trying to figure out if a field is viable for commercial operations. Corrib is looking like a difficult upstream market, especially when Ireland is moving heavily to renewable sources. Not that gas won't feature in our future.

We were never Norway. That horseshabout our enormous reserves of oil and gas were sold on here by freeman of the land sorts, long haired socialists, and Biggins.

Tis gas, isn't it?

Samaris

Aristotle145 wrote: »

And who is going to run it.?politicians?

Well, how do you think a pension fund is going to run it? Feed the pipes on retired Mounties?

Either way, there will have to be an actual management firm which knows what they're doing, and the biggest likelihood is that it would be a multinational. Whether the multinational reports to Pensions R Us or to oh, say, Bord Gais is a bit irrelevant.

Not sure Corrib is viable, but surely someone somewhere in the government knows whether it's worth it or not. I was very surprised to hear that Shell was selling out their stake though, far as I was aware, they were doing major work up there to expand rather than sell.

Is the very fact that Shell, a company with vast experience in this field, are pulling out not an indication that its a bad investment?
Why else would they pull out?

Aristotle145

Samaris wrote: »

Well, how do you think a pension fund is going to run it? Feed the pipes on retired Mounties?

Either way, there will have to be an actual management firm which knows what they're doing, and the biggest likelihood is that it would be a multinational. Whether the multinational reports to Pensions R Us or to oh, say, Bord Gais is a bit irrelevant.

Not sure Corrib is viable, but surely someone somewhere in the government knows whether it's worth it or not. I was very surprised to hear that Shell was selling out their stake though, far as I was aware, they were doing major work up there to expand rather than sell.

Well thats could be some of the problem,you want a goverment run gas field and managment firm that know what their doing.?Have we got these people in Ireland?The offshore industry and expertise isnt the same as UK or Norway.
Or do we have to get the expertise elsewhere and pay them instead?

It's always been a good topic for looking at posters be total idiots. All heart no logic.

the whole year inn

Deleted User wrote: »

It's always been a good topic for looking at posters be total idiots. All heart no logic.

Sure enlighten us,instead of using one sentence and sligin insults.

Aristotle145

Deleted User wrote: »

It's always been a good topic for looking at posters be total idiots. All heart no logic.

Yep that explains it.

CeilingFly

Samaris wrote: »

Well, how do you think a pension fund is going to run it? Feed the pipes on retired Mounties?

You can be fairly certain that the pension fund has its own expertise in the area. They don't just buy a stake and then sit on it for a bit of fun. They would be actively involved in managing the investment.

Look at other possibilities
Imagine if gas prices impoded and suddenly it needed funds to pay employees - government intervention to prop up a business is not permitted.

Then the Unions - imagine a shower of scum like Unite getting involved. Nice government controlled business - lets insist in twice the pay of any comparative work.

I still hear not a peep from Paul Murphy and Bioyd Barrett - funny that!

Cee-Jay-Cee

Aristotle145 wrote: »

And who is going to run it.?politicians?

I'm sure Denis O'Brien would step up to the plate if called upon by the gubberment.

BattleCorp

If there was piles of money (billions) to be made from the Corrib gas field, I doubt that Shell would be selling up.

Samaris

CeilingFly wrote: »

You can be fairly certain that the pension fund has its own expertise in the area. They don't just buy a stake and then sit on it for a bit of fun. They would be actively involved in managing the investment.

Look at other possibilities
Imagine if gas prices impoded and suddenly it needed funds to pay employees - government intervention to prop up a business is not permitted.

Then the Unions - imagine a shower of scum like Unite getting involved. Nice government controlled business - lets insist in twice the pay of any comparative work.

I still hear not a peep from Paul Murphy and Bioyd Barrett - funny that!

:P I know regarding the first, I was teasing the last person as the same objection can be raised to the pension fund that is taking it on. Either will need a management company that actually knows what they're doing. Likely a multinational.

I admit that the very fact that Shell is selling out its stake makes me dubious as to whether taking it on would be a good idea - and I assume someone somewhere in the government knows exactly what its prospects appear to be currently and probably a decision was made against making a bid.

Even with the rather shaky government since last year, I kinda doubt they just lost track of a gas field off the coast. I am really curious as to why Shell's selling their stake though - the last I was aware and not that long ago, I was under the impression they were investing into expanding.

Hotblack Desiato

You didn't read the link in the opening post then

Irish Times wrote:

Shell, whose headquarters are in The Hague, decided in May of last year to sell up to $30 billion of non-core assets around the globe over three years in order to reduce a $70 billion debt pile following a takeover of BG Group in early 2016.