Ireland has approved the transfer of an oil drilling licence to Cairn Energy.
Europa Oil & Gas has received consent to transfer a 70% interest in its Licensing Option 16/19 to Capricorn Ireland Limited, a subsidiary of operator Cairn Energy PLC.
Cairn will be the operator of the licence area, which covers approximately 976 square kilometres on the Western flank of the South Porcupine Basin, off the coast of Ireland.
Europa will continue to hold the remaining 30%.
Under the terms of the agreement Cairn will fund Europa’s share of the Crean Multiclient 3D seismic programme, which will include the acquisition, processing and interpretation of a 3D seismic survey over LO16/19.
Europa has identified the potential for resources in the area to be between 300 million to one billion barrels of oil equivalent.
Europa CEO Hugh Mackay said: “With government approval for the farm-out of LO 16/19 to Cairn now in place, we are looking forward to the commencement of the fully funded 3D seismic survey in the summer of 2017.”
The Irish Parliament recently voted in support of a first-of-its-kind fossil fuel divestment legislation.