Soaring gas prices ensured that revenues recorded by Vermilion Energy from the Corrib Gas field have almost tripled to $105 million (€73.2 million) for the first nine months of this year.
According to the latest quarterly report by a Canadian energy company, Vermilion Energy they recorded $47 million in revenues from July to the end of September and this compared to revenues of $10.47 million for the corresponding 2020 quarter – an increase of 356 per cent.
The $105 million in revenues for the first nine months compares to revenues of $35.3 million for the same period last year – an increase of $69.7 million.
Vermilion has a 20 per cent share in Corrib Gas and according to the report, and they achieved the increase in the value of sales due to higher gas prices.
Vermilion achieved the increase despite lower gas volumes being produced by the Corrib Gas field during the three-month period in question.
The lower volumes were driven by a natural decline and planned maintenance in the project.
Vermilion’s Corrib Gas performance contributed to the energy firm recording global revenues of $1.3 billion for the first nine months of this year compared to $820.8 million for the same period in 2020 – a rise of 58 per cent.
The group’s fund flows from operations was $263 million in the third quarter of 2021, an increase of 52 per cent from the prior quarter and the increase was primarily due to higher commodity prices.
In 2018 the former operator of the field, Shell Ireland, disposed of its shareholding in the project to the Canadian Pension Plan Investment Board (CPPIB) in a strategic partnership with Vermilion.
The deal with Shell Ireland included an initial consideration of €840 million, interest of €47 million, and additional payments of up to €250 million to 2025, subject to gas price and production.
As a result of Shell Ireland selling off its share in the Corrib Gas field, Vermilion increased its stake in the field to 20 per cent on December 21st, 2018.
The Corrib Partners – which also includes Statoil, renamed Equinor Energy – invested more than €3.6 billion in the project before gas started to flow – more than four times the original estimate of €800 million.