I propose to take Questions Nos. 112 and 113 together.
As regards offshore petroleum exploration the most recent results are those available from the well drilled in block 18/20 off the coast of Mayo. The position in regard to the outcome of that well is as outlined in my reply to the Deputy's question on 4 November 1998.
As the Deputy is aware, since Kinsale was discovered in 1971 and brought into production in 1978, apart from Ballycotton we have had no oil or gas discovery which has been brought into commercial production. Despite the considerable efforts to develop the Connemara field last year the licensees were unable to do so, but on the positive side I am encouraged with the flow rates from the Corrib this year. Also this year, I have granted a lease over the Helvick field and a plan of development for the field is being prepared.
There are three factors which influence companies when considering investing in an area — price, prospectivity and terms. The price obtained for oil and increasingly gas is set internationally and is outside my control. We promote our offshore prospectivity by encouraging data acquisition and by making data available to exploration companies. The one factor entirely within my control is the terms under which a discovery is exploited and these, together with the tax terms, were revised six years ago following the dramatic decline in interest in our offshore. These revisions have been successful in that they attracted the industry back to Ireland and we now have a high number of licences in place.
However, with the current low oil price, it will be difficult to maintain the current high level of interest, but there is virtually no scope to further improve the terms to attract additional exploration investment and I do not propose to make any proposals in that area.