asked the Minister for Energy the total cumulative balance of payments effects of the Kinsale Gas field to-date; the estimated total balance of payments effects to the economy in today's prices for the life of the field; the cumulative payments from Bord Gáis Éireann to the Exchequer to-date; the anticipated dividends expected to be paid for each of the next three years; if these payments have been reduced, or are expected to be reduced because of assistance by Bord Gáis Éireann to Dublin Gas; and if so, by how much.
Written Answers. - Kinsale Gas Field.
141.
The balance of payments effect of the gas from the Kinsale Gas field to date is about £1,300 million. It is difficult to estimate the balance of payments effect to the entire field but given that about 60 per cent remains to be consumed a rough indication of the total balance of payments effect might be £3,000 million.
To the end of 1986 BGE had paid £245 million to the Exchequer. It is not anticipated that any dividend payments to the Exchequer will be made by BGE over the next few years.
These nil payments are due to a combination of low oil prices and hence lower profit margins for BGE and the need to support the development of gas distribution in Dublin and other centres along with further already planned capital expenditure on gas infrastructure. BGE's anticipated profits over the period are expected to be reduced by at least £35 million.
142.
asked the Minister for Energy the total royalty payments made to-date by Marathon Ltd., in respect of the Kinsale gas field; and the projected royalty payments over the next ten years.
The total amount of royalties paid to-date by Marathon in respect of the Kinsale Head gas field is £25,633,717. For 1987, the estimated royalty payment is £2,600,000.
It is not possible to project accurately the level of royalty payments over the next ten years as these payments are related to the annual contract quantities agreed between Marathon and BGE and are also related to variation in the price of the gas which is determined by an oil price related formula. However, if the contract quantities and price are stable for the period, the estimated annual royalty payments over the next ten years will be broadly in line with the 1987 levels.