Norway’s Equinor has closed the sale of non-operated stake of 36.5% in the Corrib gas project in Ireland to Canadian oil and gas producer Vermilion Energy.

The transaction, which was announced in November 2022, involved Equinor’s shares sale in Equinor Energy Ireland Limited (EEIL) for total consideration of $434m before closing adjustments and contingent payments.

The net purchase price upon adjusting for the interim free cash flow, the contingent payment and other closing adjustments is about $200m.

Equinor held 100% stake in EEIL, which owns 36.5% stake in the Corrib gas project located 83km off Ireland’s northwest coast in water depths of almost 350 metres.

With the closing of the deal, Vermilion continues to operate the project with 56.5% stake while Nephin Energy owns the remaining 43.5% interest.

The transaction also makes Vermilion Ireland’s largest domestic natural gas provider.

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Vermilion said the EEIL acquisition adds about 7,000 Barrels of oil equivalent per day (boe/d) of premium-priced, high netback, low emission European natural gas production.

Equinor UK& Ireland senior vice-president Arne Gürtner earlier said: “The Corrib field has been an important non-operated project for Equinor for several years.

“We have taken the decision to sell the asset to focus our portfolio, in line with our strategy, to capture value from the current strong market and to free up capital that we can re-invest elsewhere.”

The Corrib natural gas facility includes a conventional gas field off the northwest coast of Ireland and an onshore gas processing plant.

Vermilion said in a statement: “The facility has a gross plant capacity of approximately 350 million cubic feet of natural gas per day and is currently producing 115 million cubic feet of natural gas per day, representing approximately 20% of Ireland’s natural gas consumption and 100% of Ireland’s domestic gas production.”