Vol. 516 No. 4
47 Mr. Durkan asked the Minister for the Marine and Natural Resources if an audit has been carried out in respect of onshore and offshore explorations with a view to a determination of the potential in these areas; and if he will make a statement on the matter. [8388/00]
Exploration for oil and gas is a very high risk activity. In Ireland and generally speaking internationally, this risk is carried by private sector companies which invest large volumes of funds testing what they consider to be the best prospects. These companies have to date undertaken 133 wells in Ireland at a total historic cost of some £700 million. Currently, there are three discoveries-developments which are at various stages of development.
A plan of development for the south-west lobe of the Kinsale Head gas field was approved last year and the field was brought into production in October. There are important developments taking place in relation to two other 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 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. Evaluation of all the data has continued over the past few months with a view to establishing a location for a further appraisal well which Enterprise Oil will drill this spring. It hopes to be in a position to decide whether the Corrib gas field is commercial or not in December of this year.
Should the results of its 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 submit a plan of development for the field for my approval.
