Equinor stated that it has reached an agreement with Vermilion Energy to sell its non-operated equity position in the Corrib gas project in Ireland.

Equinor owns 36.5% of the Corrib project and Vermilion owns 20%, while the 43.5% remaining share is held by Nephin Energy.

The press statement from Equinor also added that both parties have agreed for a consideration of $434 million, before closing adjustment. The agreement is expected to be effective as of 1 January 2022.

The two companies have agreed to hedge approximately 70% of the production for 2022 and 2023. They are also in agreement regarding a contingent payment that will be settled on a part of the revenue, if European gas prices increase beyond a given floor level.

The deal is awaiting required consent from partners, government, and regulatory bodies.