Providence Resources PLC (LON:PVR) has revealed that a planned offshore work programme for the Barryroe field has been delayed by a dispute between the Irish authorities and an environmental group.
The company, in a stock market statement, told investors that the Barryroe partners have decided voluntarily to not act on consents granted for a well site survey, which had been due to get underway before the end of 2018.
An Taisce, Ireland’s national trust, earlier this year issued legal proceedings against Ireland’s minister of communications, climate action and environment as well as the country’s attorney general.
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It challenged the process by which the consent was granted to the oil companies, and, also raised other issues related to environmental assessment and compliance with EU law.
The matter was heard in court on 20 November, but, was adjourned until 11 December.
After taking advice, the Barryroe partners decided to postpone the work, off the original timeline for the survey, and, instead they now intend to do the work in the second quarter of 2019. That would be followed by the start of well drilling in the third quarter.
"We are frustrated by this turn of events, especially as we complied fully with all environmental and planning regulations in applying for and subsequently receiving the site survey permission,” said Tony O’Reilly, Providence chief executive.
“However, with the site survey permission now being the subject of legal challenge, combined with delays with the site survey vessel arriving in Irish waters, would have resulted in undue delays to the company carrying out its proposed activities.
He added: “Whilst it is disappointing that this situation has arisen, we felt that it was in the best interest for the overall programme not to act on the site survey permission and re-apply, thereby avoiding any unnecessary costs and possible further delays associated with the judicial review proceedings.
"Whilst this rescheduling will impact the planned start of the multi-well drilling programme at Barryroe, moving it from Q2 2019 into Q3 2019, we believe that it does not materially impact the timing of the overall delivery of the programme."