asked the Minister for Energy the current level of oil and oil-related exploration activity in the country and in Irish waters at present; and if he will make a statement on the matter.
Written Answers. - Oil Exploration.
26.
The first well of our 1987 drilling programme was, in fact, spudded in Block 57-2 on Sunday morning last, 5 April. Last week, the rig which will drill our second well this season started its journey to the drilling location in Block 49-9 and that well, 49-9-4 should be spudded today or in the next few days. Our third well will be spudded when the second well has been completed. I expect to see another commitment well spudded later in the year and, assuming encouraging results from the early wells, I would expect further wells this year which will bring this year's drilling activity to much the same level as 1986 when six wells were spudded. I might add that our second well this year will be of crucial significance and its results could bring forward the prospect of our first commercial development of an oil field.
Overall, therefore, 1987 will have a particular importance for us. I regard the level of drilling this year as reasonably satisfactory, taking into account the current low price of oil. For the future, however, I believe that there is a need to push the pace of exploration along more rapidly than heretofore. With that in mind, my Department recently completed a special study of five unallocated blocks in the Celtic Sea and applications have been invited from oil companies interested in licensing these blocks.
The study is available as a package for purchase by suitable exploration companies and presentations of the integrated geological and geophysical interpretation of the blocks have been made to a number of such companies by my officials. The response has so far been encouraging and I look forward to some positive decisions being taken by companies before the closing date for licence applications on 1 July 1987.
While I am at this stage satisfied that our licensing terms are competitive with those prevailing in western Europe I am also keeping them under close review to ensure that they do not represent an obstacle to exploration in our offshore.
With regard to our onshore acreage under licence, the only drilling activity planned for this year is an exploration well in the Castlecomer Basin.