In regard to petroleum exploration there are important developments taking place in relation to two hydrocarbon accumulations in our offshore, the Corrib gas accumulation and the Helvick oil field.
The position in relation to the Corrib field is that Enterprise Oil and their partners Saga Petroleum, Statoil Exploration (Ireland) Limited and Marathon International Petroleum Hibernia Limited drilled an appraisal well last year and produced gas on test which flowed at a stabilised rate of 63 million cubic feet of gas per day. A second appraisal well flowed gas at a rate of 64 million cubic feet per day and was successfully completed in August. The data acquired by the operator, which has been made available to my Department, is being evaluated by the licensees. However, I understand that additional appraisal work is required and that a further appraisal well may be necessary before it can be determined whether the field is commercial.
The final decision as to whether the field is commercial will depend on factors such as the size of the field, the quality of the reservoir, the quality of the gas, flow rate of the well, the market price and the cost of development of the field. It is not possible to give precise figures for the size of the gas accumulation at this stage and this will not be possible until the accumulation has been fully appraised. The Deputy will appreciate that all data from the well must remain confidential
Should the results of their appraisal programme show that the gas can be commercially produced it will be necessary for Enterprise Oil to apply to me for a petroleum lease and, as part of that application, submit a plan of development for the field for my approval.
