asked the Minister for Industry, Commerce and Energy the present position in respect of (a) oil exploration, (b) gas exploration around this country's coasts and (c) further mineral finds, if any.
Ceisteanna—Questions. Oral Answers. - Oil and Gas Exploration.
15.
There are 13 companies or consortia engaged in oil and gas exploration activities in Irish waters under exclusive licence and 11 holders of non-exclusive licences authorising general prospecting.
We are now nearing the end of the 1978 drilling season which was our busiest to date and which saw 15 wells being drilled in various locations: the Celtic Sea, the Fastnet, the Porcupine and the North West. The last of these wells is still being drilled.
As the Deputy will probably have seen from a recent press statement, one of the licensees encountered significant, though non-commercial, indications of petroleum in a well in the Porcupine, where flows of up to 730 barrels per day of good-quality sulphur-free oil were recorded. While the recovery of this quantity of oil cannot be considered a commercial proposition, especially in the water depth of 1,411 feet in which the well was drilled, the results are nevertheless encouraging and the licensee has plans for further assessment of the area. This development will also, I expect, stimulate further general interest in offshore exploration in our waters.
None of the other wells completed this year produced significant indications of hydrocarbons but the geological and other information resulting from these wells has been valuable and in certain cases has contributed to what I feel is an encouraging view of future prospects.
Regarding the question of further mineral finds, a number of small mineral deposits have been discovered in recent years and further exploration of these deposits is proceeding. Some other interesting prospective areas in various parts of the country are also being investigated at present.
16.
asked the Minister for Industry, Commerce and Energy if he is in a position to state, after the close of the recent oil drilling season, if the same level of exploration will be maintained during the next drilling season; the names of the companies who have indicated their intention to maintain drilling next year; and the main conditions of the agreement reached which cover offshore oil exploration during the coming season.
The licensees operational plans for the 1979 drilling season are unlikely to be finalised for some months yet. I am not therefore in a position to indicate what the precise level of operations may be next year.
I can say, however, that it is most unlikely that the exceptional level of this year's operations will be achieved. Under the terms of the licences granted in 1976, most drilling obligations had to be complete within three years, that is, in practice, before the end of the 1978 drilling season.
Furthermore, certain licenses who had more than three years within which to complete particular obligations decided to drill in 1978. The 1978 season was, therefore, quite exceptional in so far as the level of operations was concerned and 1979 is likely to be closer to the more normal levels of 1976 and 1977.
Under the 1976 licence agreements five contractual wells are due for completion in 1979. It is probable that additional wells will be drilled next year but, as I have indicated, it is too early to say what the ultimate number is likely to be.
Is it not true that the Minister can attach conditions to the issuing of licences?
There has been no change in the offshore licensing terms.
There can be. Is the Minister not free to attach conditions to any licences he issues?
Question No. 17.
This is relevant.
Not as I understand it. The alteration refers to the next question. Question No. 17.
The question relates to the amount of drilling that will go on offshore next year.
The Deputy is referring to the answer to the next question.
The Minister does not understand. I am not blaming him for this because it is not his area. If the Minister for Industry, Commerce and Energy issues licences for drilling in the offshore regions for the next one or three years, he can attach conditions to these licences. Would the Minister of State not agree that it would be desirable that one of these conditions should be that a number of wells equal to the number of wells drilled this year should be drilled?
We are all anxious to see the maximum number of wells drilled every year. With this in mind an allocation of additional offshore acreage for Phillips, the company that were involved in the Porcupine field, was announced on 10 November and certain conditions were attached in relation to seismic studies, the number of wells and so on. I can let the Deputy have a copy of a press statement on that.
The point I am trying to establish is that it would be in the national interest that the Minister attach to the conditions of the licences he now proposes to issue that there should be an amount of drilling in 1979 equal to that of 1978.
We cannot expect the same number of wells.
Question No. 17.
(Interruptions.)
17.
asked the Minister for Industry, Commerce and Energy the policy considerations which led to his recent announcement concerning changes in conditions of oil exploration licences.
I did not announce any changes in offshore licensing terms nor are any changes currently contemplated. The point I made was, in fact, that suggestions for changes in the licensing terms would not be justified.
I pointed out that the licensing terms adopted in 1975 specifically provided for flexibility so that development on an economically viable basis of even very marginal offshore fields could be encouraged.
On a point of order, I cannot understand what the Minister of State is saying, he is reading so fast. Would the Minister slow down a bit and we might be able to understand what he is saying?
The Minister does not understand it himself.
I understand the difference between the Deputy's ballot box and my ballot box.
(Interruptions.)
The present indications are that our best prospects for commercial discoveries may lie in deep-water areas where development would, for obvious reasons, be much more costly than in shallower inshore waters. I consider it is important to assure licensees that the Government would be prepared to cooperate with them in facilitating the development of any offshore deposit which gave prospects for commercial production.