Dáil Éireann debate -
Thursday, 10 Feb 2000

Vol. 514 No. 2

Written Answers. - Offshore Exploration.

Jan O'Sullivan

Question:

41 Ms O'Sullivan asked the Minister for the Marine and Natural Resources the latest information available to his Department regarding the extent of the gas discovery made by a company (details supplied); if it is regarded as commercial; the outcome of any meetings; and if he will make a statement on the matter. [3632/00]

Minister for the Marine and Natural Resources (Mr. Fahey)

Enterprise Oil and its partners, Statoil Exploration (Ireland) Limited and Marathon International Petroleum Hibernia Limited have drilled three wells in the Corrib gas accumulation located in the Slyne Trough – an exploration well in 1996 and two appraisal wells, one in 1998 and the second in 1999.

The exploration well was a gas discovery but the operator was unable to test it at the time. The first appraisal well produced gas on test which flowed at a stabilised rate of 63 million cubic feet of gas per day. The second appraisal well flowed gas at a rate of 64 million cubic feet per day. All data acquired by the operator, has been made available to my Department, and evaluation has continued over the winter with a view to establishing a location for a well which Enterprise Oil will drill this spring. They hope to be in a position to decide whether the Corrib gas field is commercial or not in December of this year.

The final decision as to whether the field is commercial will depend on factors such as the volumes of gas in place, the quality of the reservoir, the quality of the gas, the flow rate of wells, market availability and price and the cost of development. Calculation of the size of the gas accumulative is too imprecise at this stage based on data currently available but this will be known with more precision once the accumulation has been fully appraised. The Deputy will appreciate that in accordance with the licensing terms data from the field remains confidential at this time.

There are frequent meetings between myself, my officials and Enterprise Oil regarding Corrib and I have a detailed understanding of the field and I am being kept fully informed of the operators views and concerns as the appraisal programme progresses. My specific requirements for a plan of development application and the process whereby approval would be given are under discussion between us to ensure that should Enterprise declare commerciality there will be no delay in moving to the development stage.

Should the results of Enterprise Oil's appraisal programme prove that the Corrib field is commercial it will be necessary for them to apply to me for a petroleum lease and to submit a plan of development for the field for my approval in order to bring the field into production. I hope that they will be in a position to seek a petroleum lease at the end of this year.