asked the Minister for Energy the progress to date in the exploration for natural gas in west Cavan.
9.
Ceisteanna—Questions. Oral Answers. - Energy Exploration.
8.
asked the Minister for Energy if he will make a statement on the possibility of gas and oil supplies from the exploration in west Cavan.
I propose to take Questions Nos. 8 and 9 together.
During the early sixties two exploration wells were drilled in west Cavan and some interesting gas shows were encountered in one of them.
In early 1981 a new exploration group re-entered this well and by applying fracturing techniques, increased the gas flow rate. While the improvement was substantial it did not establish commercial viability.
Subsequently two major seismic surveys were conducted over the area and it is expected that a further well, located at Macnean, is being drilled since late last month.
Has any investigation been done into the market? Have the Department been in consultation with the Northern authorities as it is generally accepted that the gas field extends into Fermanagh?
I have not been personally in contact with the Northern authorities. I am sure there are ongoing discussions with them. The present situation is that drilling has just started on the well, as I am sure the Deputy is well aware, since the end of last month. The situation now is to wait and see the result of the tests of that well.
Would the Minister agree that the EEC Social and Economic Committee place great emphasis on the natural resources? Is it not a great pity, seeing that this is at EEC level, that there is not an accompanying examination of the needs? Would the Minister not agree that in most cases it is the populous areas which are being facilitated and that regions such as this, which would be given a great fillip in regard to industry, are affected? In view of the expensive surveys carried out would the Minister have accompanying examinations made of those areas for suitable markets?
I assure the Deputy that the studies which have been carried out will be fully utilised by us in looking at the structure of the area. The question at the moment is that it will obviously take some time before any results are to hand in relation to the amount of gas in the area. I assure the Deputy that full studies will be undertaken.
Would the Minister agree in view of the fact that the geological evidence seems to suggest that, if there is gas in west Cavan, it extends into Fermanagh and vice versa, a joint study on the area with the Northern authorities is far more likely to be useful than simply we operating on our own, that the amount of knowledge that can be gleaned is not simply the sum of the two separate studies but that a joint study and joint exploration could be infinitely more valuable?
I agree with the Deputy's point in relation to the proximity of the location between Cavan, Fermanagh and the areas on both sides of the Border. I do not envisage any difficulty in relation to getting the co-operation of the Northern Ireland and the British authorities regarding joint studies. This is a matter which can be taken up and which will be of benefit to both areas if there is a commercial discovery. Obviously it is not a simple matter of a finding on both sides because there will be interlocking of the fields.
Has any work been done on the Fermanagh side?
I believe there is an intention to explore on the Fermanagh side but I do not believe any work has been done to date.
10.
asked the Minister for Energy the measures the Government is taking to ensure that information supplied to it by commercial companies involved in oil exploration in Irish territorial waters is accurate.
In accordance with specific provisions of all offshore petroleum exploration or prospecting licences issued by my Department, the holders are required to furnish all information arising from their exploration activities. The information which must be supplied includes geological, geophysical and geochemical data, details of all drilling operations and of their results, and the submission of drill cores, well logs, and all interpretative material and conclusions drawn by licensees from their operations. During the drilling of a well, information in respect of the drilling operations is furnished on a daily basis by the operator concerned and, at critical stages of a well, including the testing operations, a representative of the Department is present on board the drilling vessel.
The accuracy of the information is verified by fully competent technical personnel in my Department supported, where it is deemed necessary, by outside consultants. These consultants, whose status is internationally recognised, are engaged to carry out on behalf of the Department, independent evaluation of data supplied.
I can assure the Deputy that all information relating to offshore exploration which is supplied by the oil companies is subject to the most careful scrutiny to ensure its accuracy.
Did I hear the Minister say that a representative of the Department is present on the oil rig to assess day to day progress?
Yes. I said that at critical stages of a well, including the testing operations, a representative of the Department is present on board the drilling vessel.
Has the senior official of the Minister's Department who was engaged in the evaluation of this kind of information and who last year was appointed to an academic post in UCD and left the Department been replaced by somebody of equal experiences and seniority?
In the research team and technical staff available to me in my Department I have a fully competent staff including, one senior petroleum adviser who is a petroleum geologist on a consultancy basis. We have one principal geologist who is on secondment from the NBST. We have two geophysicists, one full-time and one on a consultancy basis, one petroleum geologist and one consultant engineer. I feel, having worked very closely over the last few months with those people, that we have a very competent staff in that petroleum division, that they have fully appraised themselves and are able to meet any situation which arises in relation to our exploration programme.
I do not doubt their competence but I asked the Minister a specific question: if the official who left last year for UCD has been replaced?
I do not have the information available to me as to the actual timing and dates of the appointment of people in my Department. I have given the Deputy the information in relation to the numbers. I feel, in relation to the actual question asked, that the information I am making available is that we have the staff in sufficient numbers and competence to deal with our needs.
Are the Geological Survey office engaged in this evaluation or is it all been done by departmental officials?
The evaluation is done by departmental officials.
This question relates to a very important matter and concerns fully accurate information being available to the Government, because it is on the basis of this that negotiations will take place. Could the Minister indicate, in relation to the number of staff consultants and experts available to him, how that compares with the staff available five or six years ago? Has it increased or reduced?
From the information available to me, as I said to Deputy O'Malley, I do not have the actual dates and number of staff available at any particular time but I can get that information for the Deputy if he requires it.
11.
asked the Minister for Energy when it is anticipated that drilling and testing on Block 49/9 will have been completed.
12.
asked the Minister for Energy if he will make a full statement on the results of exploration to date in Block 49/9.
13.
asked the Minister for Energy if he will make a statement on the latest information available to the Government on the results of oil exploration activities in the Celtic Sea.
I propose to take Questions Nos. 11, 12 and 13 together.
Gulf Oil (Ireland) Limited, Atlantic Resources Limited and Unionoil (Ireland) Limited comprise the consortium which holds block 49/9 under an exclusive offshore exploration licence. Gulf Oil (Ireland) Limited is the operator for the licence.
The operator has, to date, drilled two exploration wells in this block. The first of these was dry and was plugged and abandoned. The second resulted in the discovery of hydrocarbons. The operator then drilled the first appraisal well related to the discovery and drilling and testing of that well was completed on 5 April last. This well has now been temporarily abandoned as was the discovery well.
It is the practice that statements regarding the results of wells are in all cases issued by the operator. In regard to the three wells now completed in block 49/9, Gulf as operator have issued formal statements on their results. The latest such statement was issued by Gulf on 7 April last.
I do not propose to depart from the normal practice by adding to those statements, especially in view of the confidential nature of the well data. I will, however, be pressing the licensees to proceed with all haste in completing the delineation of the field.
When does the Minister expect that the fourth well will be drilled in block 49/9?
I cannot give the Deputy an exact date. As I said in my reply, I am anxious to see the full delineation of the field and we are encouraging the exploration companies to carry out investigations as quickly as possible.
Would the Minister not have arranged already that as soon as the well on field 48/19 which is being drilled at present is completed the rig would return to 49/9 in view of the fact that in one of the three wells drilled so far there was a significant hydrocarbon find?
It is a matter for the explorers to assess the results after the well is completed and then to set out a further exploration programme.
Are we to take it that the Government would have no objection if Gulf decided that they did not wish to drill another well in 49/9 for a year or two?
We are encouraging the exploration of this field to continue as quickly as possible. It is in everybody's interest that it be done but it is not a question of dictating one way or another. I do not see occurring the hypothetical situation to which the Deputy refers because it is in the interest of the company, of the Government and of the people generally that drilling takes place as quickly as possible.
In those circumstances is the Minister not suggesting a date on which the well will be drilled?
Not at this stage, given the variation in time. As was found from the last drilling, there were unforeseen delays, all of which are well-founded. One must wait and see what happens in relation to this well.
Would the Minister care to comment on the various items which emerged by way of leaked information during the course of the drilling and which resulted in the manipulation of shares at the time?
That seems to be a different question.
The information did not come from my Department. The matter of speculation on the stock market is something over which I have no control. I would deplore what happened in the past number of months.
This must be the final supplementary.
Question No. 13 is broader than a reference to field 49/9. The Minister has not adverted in his reply to the results that are available to him.
I will make available to the Deputy all the up-to-date information that is at my disposal on these activities.
Would the Minister agree that one of the reasons for all the speculation and rumour is the lack of official information? In these circumstances would he not consider it useful, when a well is completed, to make a comprehensive statement on the lines that I have asked for in Question No. 12 instead of simply saying that he had nothing to add to what the company had said?
The Deputy will appreciate that in respect of exploration activities there is a high degree of competitiveness between the exploring companies. It would not be in the best interest of anyone that information be made available on an on-going basis.
I asked whether, after drilling of a well had been completed, the Minister would not consider it appropriate to make a comprehensive statement.
The practice has been for the company concerned to issue a statement and I do not think that anything can be added by my making a statement.
14.
asked the Minister for Energy the changes, if any, that are proposed in the existing licensing terms in respect of the proposed third round of licensing.
As I indicated on 29 February last when I announced details of the third licensing round, I do not propose to make any changes in the 1975 exclusive offshore licensing terms. These terms apply to all existing offshore licences and will remain in force in respect of licences issued under the third licensing round and otherwise.
As in 1975, the objective of the terms is to provide the maximum benefits for the people of Ireland, who own our offshore resources, while at the same time affording a fair and reasonable return for developers who possess the necessary technical expertise and financial resources to carry out the exploration and development of our offshore.
May I take it that the declared intention of the Minister not to make any change in the licensing terms extends also to the taxation provisions?
As the Deputy is well aware, the matter of taxation is one for the Minister for Finance.
Are we to take it that the taxation situation may well be changed?
That is a separate question.
I do not think there is any change.
Is there any change proposed?
I do not think so.
If there was a change proposed would the Minister be told about it?
It would probably come to my knowledge. I attend all Cabinet meetings.
15.
asked the Minister for Energy the number of exploration and appraisal oil wells drilled in 1981, 1982, and 1983; and the locations.
A total of eight exploration wells were drilled offshore Ireland in 1981. Of these, five were located in the Porcupine Basin, one in the Celtic Sea Basin, one in the Fastnet Basin and one in the Slyne Trough.
In 1982, three exploration wells were drilled, two in the Porcupine Basin and one in the Goban Spur.
Six exploration wells and one appraisal well were drilled in 1983, all of which were located in the Celtic Sea Basin.
No exploration wells were drilled onshore in the years in question.
What is expected in respect of 1984 in terms of the number of wells to be drilled?
What are the indications for 1984?
There are six wells to be drilled in 1984.
Is any of these in the Porcupine Basin?
Yes, one.