asked the Minister for Industry and Energy if he will make a statement on the results to date of any off shore oil and gas explorations which have taken place; and if he will make a statement on the future prospects in this area.
Written Answers. - Oil and Gas Exploration.
346.
Up to 16 June 1983 a total of 71 hydrocarbon exploration wells had been drilled in the Irish offshore. Three other wells are currently being drilled. Our only discovery to date which has proved commercial is the Kinsale Head Gas Field. The field was discovered in 1971 and declared commercial in 1973. Production from the field commenced in 1978 and total recoverable reserves are estimated at 1.353 trillion cubic feet.
"Shows" or "flows" of hydrocarbons have been recorded in a large proportion of the other wells. Of most significance are those wells which have actually flowed oil or gas on test. These are as follows:
A well drilled in the Celtic Sea on block 49/13 in 1974 flow tested gas at a daily rate of 119 thousand cubic feet. A further well on the same structure in block 49/14 in 1975 flow tested gas at a rate of 8.81 million cubic feet per day. A well drilled on block 48/24 also in the Celtic Sea, in 1974 flowed 780 barrels of oil per day on test and up to 10 million cubic feet of gas per day. A second well, on the same structure in 1974 flowed oil on test at a rate of 1,550 barrels per day and gas at a rate of 566 thousand cubic feet per day.
Neither of the accumulations identified in these two structures are considered capable of sustaining commercial production at the present time. However, the situation is being kept under review within my Department in the light of changes of a technical or economic nature which might alter this. Of the 21 wells drilled to date in the Porcupine Basin 4 have flowed hydrocarbons on test as follows:
730 barrels per day from a well drilled in block 35/8 in 1978; 5,589 barrels per day from a well drilled in block 26/28 in 1979; 1,490 barrels per day from a well drilled in 1980 — also in block 26/28 and 925 barrels per day and 4.8 million cubic feet of gas per day from a second well drilled on block 35/8, in 1981. The structure identified on block 26/28 has proved to be extremely complex and two further wells drilled there in 1981 found no significant amounts of hydrocarbons. A sophisticated three dimensional seismic survey was shot over block 26/28 in 1982 and the results of this survey, when evaluated, will assist in determining the location of the next well to be drilled on the block.
As regards block 35/8 in the Porcupine, further work, including further drilling, will be necessary to determine whether hydrocarbons are present in commercial quantities on this block. With regard to future prospects, it will be appreciated that it is not possible to speak with any degree of certainly about the possibility of a further commercial discovery until drilling operations have actually identified sufficiently large accumulations of hydrocarbons. However, the results to date have proved that hydrocarbons do exist in significant quantities in our offshore. We can also take encouragement from the number of wells which have flowed hydrocarbons on test.
Perhaps, in practice, the most improtant measure of Irish offshore prospects is the willingness of the oil companies to continue to commit funds to exploration here. In this respect I am very encouraged by the number of oil companies that have taken up acreage in the Celtic Sea. This would indicate that the companies share our own assessment of the area as one of considerable potential. I am also very pleased that, despite the recent fall in oil prices which has tended to make deepwater areas less attractive, interest in the Porcupine is continuing with four blocks there having been licensed in the Second Round. Exploration work is also continuing in relation to the Kish, the Fastnet, the Goban Spur and the Slyne Trough. The number of wells that will be drilled this year together with the level of activity we expect over the next two years should bring us much further in establishing whether additional commercial accumulations of hydrocarbons are present in our offshore. It is this vital factor of potential commerciality which will determine the long-term prospects for exploration in our offshore areas.
347.
asked the Minister for Industry and Energy the number of compaines which will be engaged in off shore oil and gas exploration for 1983; the names of the companies involved; the location of each one; the number employed on and off shore; and if he will make a statement on the matter.
The oil exploration programme for the 1983 season envisaged the drilling of six or seven wells. In the Celtic Sea Gulf Oil (Ireland) Limited will be operator for three wells while Burmah Oil Exploration Limited, Elf Aquitaine (Ireland) Limited and Total Marine (Ireland) Limited will each drill one well.
BP have a commitment to drill a further well in the Porcupine Basin and discussions with my Department as to the timing of this well are expected to take place shortly. The total number of companies, including the operators already mentioned, participating in the licences under which these wells will be drilled amounts to 29 and details are as follows:—
Licence No. 2/81
Gulf Oil Ireland Limited,
Unionoil Ireland Limited,
Atlantic Resources Limited
Licence No. 2/82
Gulf Oil Ireland Limited,
Hydrocarbons Ireland Limited,
Unionoil Ireland Limited,
Atlantic Resources Limited
Licence No. 4/82
Burmah Oil Exploration Limited,
Hispanica de Petroleos, S. A.
("Hispanoil")
Neste Oy (Finland),
S. P. Exploration (Ireland) Limited,
Charterhouse Petroleum Ireland
Exploration Limited,
D.S.M. Exploration Ireland B.V.
Licence No. 3/82
Elf Aquitaine Ireland Limited,
Nitrigin Eireann Teoranta
Murphy Ireland Oil Company,
Rimrock Offshore Limited,
Ultramar Exploration Limited,
Ireland Hunt Oil Company
Licence No. 9/82
Total Marine Ireland Limited,
Diamond Shamrock Oil Company (U.K.) Limited,
Weeks International Limited,
Clyde Petroleum Financial Limited,
Bow Valley Industries Limited
Licence No. 4/76
BP Petroleum Development Limited,
Aran Energy Limited,
Saga Ireland Limited,
Getty Oil International Ireland Limited,
Amerada Hess Corporation of Ireland,
Bula Oil Limited,
Shenandoah Ireland Incorporated,
Sceptre Oil Limited.
Gulf completed their first Celtic Sea well on block 49/9 on 16 June 1983. The well was plugged and abandoned having encountered only minor hydrocarbon shows. Gulf are at present drilling a second well on block 49/9, and Total and Burmah are drilling on blocks 57/2 and 57/7 respectively. The locations of the other two wells to be drilled in the Celtic Sea have not yet been finalised. The further BP well in the Porcupine Basin will be drilled on block 26/28.
About 260 people from this country will be employed directly in offshore-exploration this year. Some additional employment will also be created through spin-offs from exploration operations, but it is not practicable to quantify this.
I regard the level of exploration this year as very satisfactory particularly when one considers the severe cutback in exploration expenditure which the industry is experiencing at the present time. I am hopeful that the results of this year's exploration will bring us closer to establishing further commercial discoveries in our offshore.