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Third Energy Onshore Ltd is a UK company involved in oil and gas exploration, including proposals for fracking operations in Kirby Misperton, North Yorkshire.

The company was incorporated as Viking Petroleum UK Ltd in October 2003.[1] In December 2003, it acquired a 40% holding in the Ryedale gasfields in North Yorkshire from Edinburgh Oil and Gas plc.[2] In October 2013, Viking acquired Tullow Oil's 60% share in onshore oil interests relating to the North Yorkshire gas fields and operation of the gas-fired Knapton Power Station in October 2013[3] (Knapton is supplied by gas wells in the Kirby Misperton area).[4] Viking changed its name to Third Energy Onshore in October 2013.[1]

Third Energy Onshore was 97% owned by Barclays' private equity division, Barclays Natural Resource Investments;[5] its ultimate parent company, Third Energy Holdings, is based in the Cayman Islands.[6] Sister company Third Energy Offshore was acquired from Third Energy Holdings by Hague and London Oil plc in September 2018,[7] with the deal formally approved in December 2018.[8]

In October 2018, owner Barclays was reported to be considering selling Third Energy Onshore rather than invest a further £5m to make the Kirby Misperton fracking site fully functional in the next 12 months.[9] In March 2019, financial adviser Lazard was reported to be talking to rival energy companies about investing in or acquiring Third Energy Onshore's business.[10] In July 2019, Third Energy Onshore and two sister companies were sold to York Energy, a subsidiary of US-owned Alpha Energy.[11][12]

Kirby Misperton fracking

Main article: Kirby Misperton

In November 2014, Third Energy Onshore announced its intention to apply for permission to frack near Kirby Misperton.[5][13] In July 2015 Third Energy Onshore applied to North Yorkshire County Council for planning permission to frack a well drilled in 2013 and to produce gas from it. Permission was granted in May 2016; Friends of the Earth and a local pressure group, Frack Free Ryedale, applied for judicial review of the decision,[14] but this application was rejected in December 2016.[4][15] In October 2017, Third Energy Onshore announced its intention to begin fracking within weeks.[16][17]

In November 2017, opponents to the fracking operation called upon the company to confirm its financial standing before commencing work; the company was over a month late in filing its accounts[18] (which were eventually filed on 1 February 2018).[19] In January 2018, Business Secretary Greg Clark said permission for Third Energy Onshore to frack would not be granted until financial checks had been completed by the Infrastructure and Projects Authority,[20] amid concerns about its resilience and ability to fund clean-up costs.[6] The 2016 accounts of Third Energy UK Gas Ltd showed it made a £3.4m loss (down from a £3.85m loss in 2015), but owed £44.7m to its ultimate parent company, Third Energy Holdings, based in the Cayman Islands.[6]

Third Energy Onshore began removing equipment from the site in early February 2018,[21] as questions about the company's finances and management continued, including about the September 2017 appointments[22] of former Carillion interim CEO Keith Cochrane as non-executive chairman,[23] and of Jitesh Gadhia, a Conservative party peer and donor and a non-executive director at HM Treasury body UK Financial Investments (which advises government on dealing with financially distressed businesses) as a non-executive director.[6] Cochrane and Gadhia resigned as directors in September 2018.[24]

In April 2019, the Kirby Misperton site remained dormant over a year after Third Energy Onshire vacated it;[25] the company had earlier said it would drill at the site before the end of 2019.[26] The July 2019 completion of Third Energy Onshore's sale raised fears that fracking might be restarted at Kirby Misperton.[12]

References

  1. ^ a b "THIRD ENERGY ONSHORE LIMITED". Companies House. Retrieved 10 February 2018.
  2. ^ "Edinburgh Oil & Gas Disposal". FE Investigate. Retrieved 10 February 2018.
  3. ^ "UK: Tullow completes Thames acquisition and sells onshore operations". Energy-Pedia News. 1 December 2003. Retrieved 10 February 2018.
  4. ^ a b Evers, Angus (10 February 2017). "Hydraulic fracturing - the third way". Shoosmiths. Retrieved 10 February 2018.
  5. ^ a b Gosden, Emily (25 November 2014). "Barclays-backed business applies to frack near Flamingo Land in North Yorkshire". Telegraph. Retrieved 10 February 2018.
  6. ^ a b c d Vaughan, Adam (19 February 2018). "Fracking row: Treasury 'showing shambolic conflict of interest'". Guardian. Retrieved 20 February 2018.
  7. ^ Lammy, Mark (19 September 2018). "Halo snaps up Pegasus stake with Third Energy acquisition". Energy Voice. Retrieved 11 April 2019.
  8. ^ Pai, Laxman (2 January 2019). "Halo Completes Acquisition of Third Energy Offshore". Offshore Engineer. Retrieved 11 April 2019.
  9. ^ Todd, Felix (29 October 2018). "What is Third Energy? The UK energy firm whose financial woes could stop its fracking operations". Compelo. Retrieved 11 April 2019.
  10. ^ Kleinman, Mark (12 March 2019). "Barclays-backed fracker Third Energy courts rivals for cash". Sky News. Retrieved 11 April 2019.
  11. ^ Mackie, David (10 July 2019). "Ryedale gas company Third Energy finalises sale to US firm". The Press. Retrieved 15 July 2019.
  12. ^ a b Burn, Chris (10 July 2019). "Fracking fears reignited for Yorkshire village as US firm buys shale gas company Third Energy". Yorkshire Post. Retrieved 15 July 2019.
  13. ^ Morrison, Caitlin (26 November 2014). "Barclays-backed firm Third Energy plans to start fracking in North Yorkshire". City AM. Retrieved 10 February 2018.
  14. ^ Grimwood, Tom (17 June 2016). "Fracking challenge lacks real legal merit says law firm". Utility Week. Retrieved 10 February 2018.
  15. ^ "Approved Judgement" (PDF). Royal Courts of Justice. Retrieved 10 February 2018.
  16. ^ Kentish, Benjamin (5 October 2017). "Onshore fracking to begin in UK 'within weeks'". Independent. Retrieved 10 February 2018.
  17. ^ "First UK shale gas frack in North Yorkshire weeks away". ITV News. 5 October 2017. Retrieved 10 February 2018.
  18. ^ Gosden, Emily (6 November 2017). "Opponents tell Barclays-backed fracking firm Third Energy to show its accounts". Times. Retrieved 10 February 2018.
  19. ^ Mackie, David (7 February 2018). "Fracking firm Third Energy hands in late accounts". Gazette & Herald. Retrieved 12 February 2018.
  20. ^ "Kirby Misperton fracking permission postponed for financial checks". BBC News. BBC. 25 January 2018. Retrieved 10 February 2018.
  21. ^ "Kirby Misperton fracking: Company to remove equipment". BBC News. BBC. 7 February 2018. Retrieved 10 February 2018.
  22. ^ Duke, Simon (3 September 2017). "City veterans Keith Cochrane and Lord Gadhia go fracking in Yorkshire". Times. Retrieved 20 February 2018.
  23. ^ Helm, Toby (10 February 2018). "Carillion links put fracking firm's scheme in doubt". Guardian. Retrieved 10 February 2018.
  24. ^ Hayhurst, Ruth (18 September 2018). ""City heavyweights" resign from fracking firm, Third Energy". Drill or Drop. Retrieved 19 September 2018.
  25. ^ Mackie, David (3 April 2019). "Campaigners to mark 'frack-free year'". Gazette & Herald. Retrieved 11 April 2019.
  26. ^ Mackie, David (28 February 2019). "Anti-fracking protesters vow to fight Third Energy fracking plans". The Press. Retrieved 11 April 2019.
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