asked the Minister for Industry and Commerce if he will consider the advisability of setting up a joint body embracing officials of his Department, the Department of Transport and Power, the manager and engineer or their representatives from Cork County Council, Cork Corporation and Cork Harbour Board and a representative of the Engineering and/or Geological Departments of UCC to investigate, to report on and to formulate plans in preparation for the changing economic, social and physical conditions which will take place in the Cork area as a result of the oil and gas finds off the Cork coast.
Ceisteanna—Questions. Oral Answers. - Gas and Oil Finds.
38.
As the Deputy will be aware, the only commercial discovery of petroleum made so far off the Cork coast is one relatively small find of natural gas. After taking into account a number of relevant considerations and consultation with interests concerned, the Government have, as already announced, taken a decision on the utilisation of this gas by NET and the ESB. The arrangements to be adopted by these two organisations to give effect to this Government decision will of course be subject to the usual control by the local authorities and scrutiny by other interests concerned.
Developments which may follow from further gas or oil finds in commercial quantities off our coasts will be dependent on a number of factors including the location of the deposits, the nature of the petroleum and the projected levels of production. I think it would be premature at this stage for me to take the initiative in forming a localised body on the lines suggested by the Deputy, as there is no precise evidence to indicate where future commercial discoveries of petroleum may be made.
39.
asked the Minister for Industry and Commerce the up-to-date position regarding gas and oil finds off the Irish coast.
As the Deputy will be aware, the only company holding an exclusive exploration licence in our offshore area has reported a natural gas find about 30 miles off the Old Head of Kinsale with estimated recoverable reserves of one million million cubic feet. This is modest by North Sea standards. It has been decided, in principle, to allocate this gas partly to NET for the production of ammonia for fertilisers and partly to the ESB. Discussions between the company and these two bodies are proceeding.
During last year two wells drilled to the south west of the Kinsale Head field also showed hydrocarbons. As already announced by the company the first produced oil at rates up to 780 barrels per day and gas at rates up to ten million cubic feet per day and the second flowed oil at 1,550 barrels per day. Testing of the second well had to be suspended last autumn due to adverse weather and will be resumed this year. Following this testing, additional drilling will be required to determine whether commercial quantities of oil or gas are present.
In a further well drilled last year about 25 miles south of Ardmore Head encouraging signs of hydrocarbons were indicated by preliminary analysis, but here again drilling and testing had to be suspended due to adverse weather. It will not be possible to evaluate the significance of the indications until further tests are performed later this year.