Vol. 458 No. 6
7 Mr. N. Treacy asked the Minister for Transport, Energy and Communications the effects, if any, the recent acquisitions of Irish oil companies will have on this country; and if he will make a statement on the matter. [17403/95]
I presume the Deputy is referring to the proposed acquisitions by Statoil of Aran Energy plc. and Conoco Ireland Ltd. I understand that the Minister for Enterprise and Employment is examining the acquisitions under the Mergers, Takeovers and Monopolies (Control) Acts, 1978 and 1987 as amended by the Competition Act, 1991.
In relation to exploration activities, work obligations under existing licences will remain in force after any take-over and the performance of these work obligations would be a condition of my consent for the transaction in relation to Aran Energy plc.
In so far as the supply and distribution of petroleum products is concerned my prime concern is that the security of oil supplies is not adversely affected. Deputies will be aware that Statoil is the largest producer of North Sea crude oil and is one of the largest net sellers of crude oil in the world. Since entering the Irish market through the acquisition of BP in 1992, it has demonstrated its intention to develop its Irish operations. The proposed acquisition of Conoco Ireland Ltd is further evidence of its long-term commitment to Ireland and, as such, is to be welcomed.
Statoil, a large multinational company, has taken over two wholesale oil companies. Is the Minister worried this will seriously distort competition to the detriment of consumers? Since he is the custodian of strategic stocks on behalf of this nation, has he engaged in direct consultations with Statoil demanding a guarantee in the event of any international difficulty in the supply of oil to this country?
Statoil will control 25 per cent of the retail trade if its present acquisition proposal is successful. The company has indicated to me that it is committed to improving its pricing profile, ensuring it remains competitive and offering good value to its customers. There is no price control on petrol products and consumers should reap the benefit of a competitive market. In terms of petrol prices there are significant differences between retailers, with discounts of up to 20p per gallon for the very same product available to the public at various pumps.
Two of them will be driven out of the market.
No, they will not be driven out of the market. They will be taken over by Statoil and continue to operate.
Three into three goes once.
The Deputy asked about strategic reserves. We have changed the system Deputy Treacy had in place which was entirely unreliable. The new system means we do not have to rely on Statoil and will ensure more effective supplies of oil and petrol without our being dependent on oil companies.
