() has been given government approval to team up with Petronas for the gas projects in the Celtic Sea, offshore Ireland.

PSE Kinsale Energy, a subsidiary of the Malaysian national oil company , agreed to acquire an 80% stake in the project in November.

The deal sees Kinsale Energy pay 100% of the costs for a well targeting the Middleton gas project, as well as covering Lansdowne's share of testing costs up to US$2.5mln.

A phase of well planning activities is underway.

"We are pleased to receive the consent from the Irish Government for the farm-out of Licence 4/07 to Kinsale Energy and look forward to drilling the Midleton gas prospect," said Steve Boldy, Lansdowne's chief executive.

"Much of the focus on Lansdowne's Celtic Sea assets in the last couple of years has been on the oil in Barryroe and whilst this remains the core of our portfolio, we continue to see great potential in searching for more gas in the basin.

"Gas prices remain robust and of supply continues to be a concern, so any additional volumes we can discover and bring on-stream will be very valuable."

Earlier this month it was revealed that a deal had been reached to bring a partner into the Barryroe project, though the details remain confidential whilst the new partner closes financing.

Lansdowne owns 20% of the operated project.

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