Tag Archives: Providence

Tony O’Reilly

Will Goodbody, of RTÉ, reports:

Providence Resources has today announced that its chief executive Tony O’Reilly has stepped down from the position and has resigned from the board with immediate effect.

Mr O’Reilly has been CEO of the exploration company for more than two decades.

The company said it had started a process to recruit a new CEO to lead Providence in its next phase of development.

A further announcement will be made as soon as this process is completed.

In a statement from chairman of Providence Pat Plunkett, he said:

“Since the foundation of the Company, Tony has been the main driver behind the development of the business and has been passionate in promoting the Company’s role in oil and gas exploration in the Irish offshore sector.

“Over the years, Tony led the Company into partnerships with some of the world’s leading energy companies including ExxonMobil, Eni, Chevron, Repsol, Petronas and Total.

“A major milestone during his tenure at Providence was the successful drilling and testing of Barryroe located in the North Celtic Sea Basin which has provided the Company with a world class development asset which is capable of providing significant shareholder value in the coming years.

“Tony leaves by mutual and amicable agreement and has the great appreciation of the Board for his management of Providence through multiple E&P cycles.

“On behalf of all of Providence’s stakeholders, I would like to thank Tony for his many years of dedication and hard work at Providence and I wish Tony every success in his future endeavours.”

In a statement from Mr O’Reilly, he said:

“After more than two decades with Providence, it is time for me to pursue new opportunities.

“I am extremely proud of all that we have achieved over the years and the key role that our collective team efforts at Providence have played in establishing interest in Ireland’s offshore arena.

“I wish all stakeholders in Providence every success in the years ahead, particularly with the Barryroe Project.”

O’Reilly steps down as Providence Resources CEO (RTÉ)

Providence Resources P.l.c. announces Leadership Change (Stockomendation)

Rollingnews

William Hederman writes:

“We’re going to be rich” That was one response on Twitter last night to the news that Providence Resources has been granted a licence to drill for oil less than 10km from Dalkey Island.

While more and more people understand that it is private companies rather than Ireland that will get rich from oil and gas discoveries here, there is still a stunning level of ignorance around this topic. Much of this comes from politicians and journalists.

Providence is controlled by Tony O’Reilly Jnr whose family owned about half of our news media, so you might expect coverage of the Dalkey drill to be better informed.

When Providence applied for the foreshore licence last January, one newspaper quoted a Dún Laoghaire businessman saying the project “could be a good for morale and a boost for the business community”.

If Providence does find oil beside Dalkey, the only morale boost the business community will get is by admiring the rigs and tankers from the shore.

Last year Providence explained to me that they would load the oil into tankers at the rig and probably ship it directly to a refinery in Britain or Holland.

There would be no jobs or investment onshore. The workers on the rig will fly in from Scotland and elsewhere.

The fact that the oil is unlikely to be supplied to the Irish market nullifies the “security of supply” argument.

And of course, oil finds will not reduce the price of petrol here. So let’s desist with the Dallas analogies please, newsdesks.

The only guaranteed benefit to Ireland is the 25% corporation tax rate on profits. However – and this is where the industry’s lobbying of Ray Burke 25 years ago really paid off – when calculating profits from the sale of our oil, Providence can write off the costs of all exploration anywhere in Irish waters in the previous 25 years.

The likely result of such tax write-offs is illustrated by a private study conducted for Shell in 2003.

It projected that the Corrib project would pay just €340 million in tax over its lifetime, this from a field that is now valued at up to €13 billion. (At the time of the study, the field was worth considerably less, but I estimate that €340 represented around 7% of the revenue Shell would generate by selling Irish gas back to the Irish consumer).

Economically, our oil fields might as well be in the South Pacific, but environmentally, the Dalkey drill is frighteningly close to the shore – much closer than would be allowed in other European countries.

Providence’s own Oil Spill Contingency Plan shows that a spill could reach the shores of Dublin in one hour. This drilling is in shallow water, with fast currents, hundreds of marine and bird species, next to Dublin’s greatest amenity: Dublin Bay.

All being put at risk to show that Ireland is open for business, even though that business will hardly benefit us.

William Hederman is a freelance journalist. His website is IrishOilandGas

Pic via CiaranCuffe.ie

Tony O’Reilly jnr, chief executive of Providence Resources, believes the company has a one-in-four or one-in-five chance of making a commercial oil find off the Dublin coastline.

Providence’s plans to drill wells six kilometres off Dalkey have sparked considerable opposition, particularly in south Dublin. More than 700 submissions, most of them objecting, have been made to the Department of Environment, which will decide shortly whether to grant a foreshore licence application.

People Shouldn’t Worry About Dublin Oil Drilling, Says O’Reilly (Paul Cullen, Irish Times)

(Sasko Lazarov/Photocall Ireland)