Shell has successfully taken on a controlling interest in six licenses off the coast of Sicily as part of a farm-out agreement with Northern Petroleum.

Under the terms of the agreement, Shell will pay 100 percent of Northern's back-costs, which amount to €1.9 million ($2.4 million), in addition to reprocessing costs for the fourth quarter of 2008.

In 2009, Shell will carry out initial seismic work and will take over as operator after this has been completed.

"Shell will bring to the project Italian thrust belt and production experience, in addition to its international major project and deepwater expertise," said Derek Musgrove, managing director of Northern.

Meanwhile, Jean-Pierre Tallon, relationship manager and country chair at Shell Italia Exploration and Production, added that the farm-out would help the company to expand its Italian operations in a new theatre.

In other developments, Northern Petroleum Nederland announced last week that Dutch firm EBN would take up a 30 percent stake in the Andel III production.

© Adfero Ltd

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