Dáil Éireann debate -
Thursday, 7 Dec 1989

Vol. 394 No. 3

Written Answers. - Gas Field.

38.

Mr. Sherlock

asked the Minister for Energy the latest information available to his Department on the discovery of the new gas field off Kinsale Head, County Cork, announced by Marathon on 5 April 1989; if the extent of the field has yet been determined; if new negotiations will be held with Marathon concerning royalty payments or if the existing agreement also covers this field; if any consideration has yet been given to the use of the gas, especially its possible use in creating manufacturing jobs; and if he will make a statement on the matter.

40.

Mr. J. Bruton

asked the Minister for Energy whether he has received any estimates of the recoverable reserves in the Marathon discovery on block 48/20; and if he will make a statement on the matter.

Minister for Energy (Mr. Molloy)

I propose to take Questions Nos. 38 and 40 together.

An announcement by Marathon on 5 April, 1989 on the results of well 48/20-2 stated that the well produced on test a cumulative flow rate of 29 million cubic feet of gas per day (mmc fd).

I have received from Marathon their estimate of the recoverable reserves in the new gas discovery. Data on the discovery are currently being examined by my Department which has been engaged in discussions with the company in anticipation of the formal submission by Marathon of a development plan for the gas field.

Until matters have further advanced it is not appropriate for me to give details of Marathon's estimate of gas reserves.

Royalty payments provided for in existing agreements with Marathon will apply to any new commercial developments in the leased acreage.

With regard to the use of the gas, BGE will continue to pursue its policy of targeting the industrial, commercial and residential sectors as prime markets for gas consumption.