Written Answers. - Upgrading of Oil Terminals.
Peter Barry
Question:
63
Mr. Barry
asked the
Minister for Energy
if his Department and the Irish national petroleum corporation are still in discussions over the sale or partnership of the Whitegate oil refinery; and the stage these discussions are at.
Séamus Pattison
Question:
90
Mr. Pattison
asked the
Minister for Energy
whether he has received any correspondence from the Nigerian Government in relation to the outstanding offer of that Government to enter into negotiations with the Irish Government over the upgrading of Whiddy and Whitegate oil terminals; and if he will make a statement on the matter.
Gerry O'Sullivan
Question:
92
Mr. G. O'Sullivan
asked the
Minister for Energy
if he will outline the proposals, if any, which are under consideration by his Department in relation to the upgrading of Whiddy and Whitegate oil terminals.
Jim O'Keeffe
Question:
98
Mr. J. O'Keeffe
asked the
Minister for Energy
the reason he has been unable to make progress in relation to the use of the oil terminal at Whiddy Island, in County Cork; the up-to-date position in relation to the future use of the terminal; and if he will make a statement on the matter.
P. J. Sheehan
Question:
103
Mr. Sheehan
asked the
Minister for Energy
if he will outline his plans for the future development of Whiddy Island oil terminals in County Cork; and whether the terminal will be re-opened again shortly.
I propose to take Questions Nos. 63, 90, 92, 98 and 103 together.
Officials of my Department together with the INPC are continuing to evaluate projects for the modernisation of Whitegate refinery and upgrade of Whiddy oil terminal.
At the outset I wish to refute any veiled allegation or imputation contained in the questions before me that I or my Department have been less than enthusiastic in our efforts to date. It would be, as the House can readily attest to, very unwise to enter some arrangement or pursue some project that has not been fully examined and put through rigorous analysis. Any project must meet with the Government's full approval.
The oil business is shaped by global political and economic developments. Rash decisions taken in haste can have disastrous results. A cautious sensible approach must be adhered to if the nation is to benefit from the further development of these existing assets.
In relation to Whitegate refinery I am in a position to inform the House that a particular project has been identified which warrants further detailed examination. This is in progress. I am not in a position for reasons of commercial confidentiality however to give details of these ongoing discussions. I must also stress that these discussions are at an embryonic stage.
Naturally disclosure of information relating to correspondence entered into with the proposers of any possible project would not conform to the strict standards of confidentiality adhered to by my Department. All approaches have been dealt with promptly and good relations are maintained with all those expressing interest in either facility.
Progress is also being made on a possible future for Whiddy oil terminal. Again I must stress that external international developments impact on the marketability of this facility. No firm decisions have been taken to date. Any permanent use of the facilities would naturally have to meet the highest safety standards.
Following my decision to request the INPC to place 205,000 tonnes of crude oil at the terminal during August-September last year, works relating to refurbishing fuel tanks at Whiddy were undertaken. The cost of this work will approach nearly £2 million and it has qualified for grant approval of up to 50 per cent expenditure from the European Commission, under the Perifra programme which is designed to finance limited action of an exceptional nature which would aid peripheral regions of the EC during 1990.
