Vermilion currently holds an 18.5% non-operated interest in the Corrib gas field, offshore Ireland. Production at Corrib commenced on December 30, 2015 and volumes reached full plant capacity of 350 mmcf/d (gross) by the end of June 2016. At peak production, Corrib is estimated to supply 60% to 65% of Ireland’s natural gas needs.
The Corrib gas field is located approximately 83 km off the northwest coast of Ireland. Gas is transported to the Bellenaboy Bridge gas plant through 90km of pipeline where it is then processed prior to being delivered to the national grid.
On July 12, 2017, Vermilion and Canada Pension Plan Investment Board announced a strategic partnership whereby Vermilion expects to assume operatorship of the Corrib natural gas project and increase its ownership interest to 20%. For more information, please refer to the July 12, 2017 press release.
The Corrib project generates significant free cash flow for Vermilion given low operating costs and minimal ongoing capital expenditures requirements.