Revenues surge at Shell Ireland as Corrib boosts production

Revenues at Shell Ireland last year increased by 41pc to €257.7m as production from the Corrib Gas field ramped up.

New accounts show that the increased revenues contributed to pre-tax losses at Shell E&P Ireland Ltd more than halving, going from €187m to €88.5m.

The losses mainly arise from non-cash depreciation costs of €283m.

The company last year received a tax credit of €14.35m resulting in €200m the company has received in tax credits from the project since its inception. The €14.35m in tax credits last year contributed to the company recording a post-tax loss of €74.23m.

The field contributes 60pc of Ireland's natural gas requirements and last year, Shell E&P Ireland invested €130,000 in 69 community organisations in the Erris area through a Local Grants Programme.

Last year, Shell Ireland disposed of its shareholding in the project to the Canadian Pension Plan Investment Board (CPPIB) which has agreed a strategic partnership with Vermilion in a deal potentially worth as much as €1.08bn. Vermilion already owns 18.5pc of the field and will take over as operators of the project from Shell Ireland.

The deal is expected to close before the end of this year. Numbers employed by Shell Ireland last year reduced from 118 to 102 with staff costs reducing from €19.8m to €16m. Directors last year shared €1.1m in pay and pension payments