Vol. 444 No. 2
16 Ms McManus asked the Minister for Transport, Energy and Communications the number of applications he has received from exploration companies for oil or gas exploration licences during the current season; the number of exploratory wells expected to be drilled during the summer; his Department's assessment of the prospects of a viable oil or gas discovery in 1994; and if he will make a statement on the matter.
Under the Frontier Licensing Round which closed on 15 December 1993 five applications were received for hydrocarbon exploration licences in the Erris and Slyne Troughs. Following negotiations with the ten companies in the groups a total of 28 blocks have been awarded under five licences, with commencement dates of 15 March 1994. In addition exploration licences were recently granted to a group comprising three companies in respect of two part-blocks in the Celtic Sea and to one company in respect of five blocks and three part-blocks also in the Celtic Sea.
The position in so far as exploration wells are concerned is that, while no company has a specific obligation to drill in 1994, I have indications from some companies of their drilling intentions and expect that three wells will be drilled this year. It is not possible to speculate as to the prospects of a commercial discovery being made in 1994. When the wells have been drilled and all the data acquired has been lodged, a full assessment of the drilled prospects will be made by the company and by my Department. In the event of an oil or gas discovery, additional appraisal wells would almost certainly be required to fully evaluate the discovery and it could be expected that commerciality could only be established after some months of further work.
