Barry O’Halloran: 14 Oct 2017
The Corrib natural gas field off the west coast lost €140 million last year, according to accounts filed by its operator, Shell E&P Ireland.
Global oil and gas giant, Royal Dutch Shell, is selling its 45 per cent stake in the Corrib operator to a Canadian pension fund for up to €1.08 billion. Accounts for Shell E&P Ireland show that it lost €140 million in 2016 as the cost of running Corrib exceeded the revenues that it earned. The figures show that the company’s sales were €182.2 million, but costs of €359.4 million and a near €10 million interest bill left it with losses of €187 million. A tax credit of €47 million reduced this to €140 million.
Depreciation accounts for a significant part of the high operating costs. As the field was producing gas at a high rate during the year, its value had to be written down. This was because the field itself was worth less because it held less natural gas.
Shell E&P sells its gas direct into the Irish market, where prices for the fuel have been falling sharply in recent years on the back of buoyant global supplies. FULL ARTICLE
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