Vol. 521 No. 2
28 Mr. Bell asked the Minister for the Marine and Natural Resources when a decision will be made as to whether the gas find in the Corrib field will be declared commercial; the independent information available to him as to the extent of the find; and if he will make a statement on the matter. [16821/00]
I expect Enterprise Oil and its partners to be in a position to decide on the commercial viability of the Corrib field 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 the wells, market availability and price and the cost of the development. The size of gas accumulation is being assessed.
Further appraisal drilling aimed at firming up on reservoir volumes is currently being undertaken. If the results are such that the company can establish that the field is commercial, Enterprise Oil will apply to me forthwith for a petroleum lease with a view to its development. Should the field be declared commercial, I understand from the company that it would be its intention to have the field in production by early 2003.
All data and information relating to the field are submitted on an ongoing basis by the company to my Department. This data is analysed by my Department using in-house expertise in conjunction with consultants. The Deputy will appreciate that all material associated with this assessment is commercially sensitive and, therefore, must remain confidential. However, I should point out that Enterprise Oil is reported as saying that the Corrib field might have in place recoverable reserves of more than one trillion cubic feet of gas. This compares to more than 1.5 trillion cubic feet of gas produced to date from the Kinsale and Ballycotton gas fields. As I have already stated, it is too early at this stage to give a precise figure for the size of the gas accumulation and the licensee will not be in a position to do so until they have fully evaluated the discovery.
I remind the Minister that as far back as 1988 it was reported in The Irish Times that his Department was saying it would be a highly commercial activity and that it would effectively produce 63 million cubic feet of gas per day, which is very substantial. The company has had meetings and consultations, yet we are not in a position to say independently what the facts are. I suspect there may be an attempt by the company to under-sell it at this stage because much of the activity in relation to the gas find will find its way into the public sector. Has the Minister any plans to have this issue examined independently because it will be mainly public money which will be used for the development process?
My Department has first-hand information from the company on the progress being made in the drilling programme. We are extremely lucky to have top class expertise available in the Department and we are benefiting from the expertise of consultants who continue to evaluate the information being made available by the company. I am quite satisfied we are being kept fully informed about what is happening in the drilling process which is currently taking place and that it is not necessary to engage independent consultants.
It is rather strange that discussions have been taking place in the State and semi-State sector on this huge gas find while at the same time the company is throwing cold water on it and playing it down. Is the Minister satisfied the company is not doing this for purely commercial reasons? In his initial reply the Minister stated it is a very sensitive matter, which I understand. I have no doubt he has the expertise in his Department, but is he satisfied the experts and officials in the Department are receiving the accurate and up to date assessment figures being produced and examined by the company?
My Department receives the same information at the same time as company headquarters in London. There is no question but that we are receiving the accurate information the company is receiving. Regarding the commerciality of the find, the Deputy is correct in saying the company announced a significant gas find two years ago. However, it has not yet declared that find to be commercial. The appraisal wells being drilled will establish the commerciality or otherwise of the field. It is important to point out that this is an extremely difficult location, some 37 or 38 miles off the coast. Clearly, the company must be sure of the commerciality of the find. The Deputy is correct in saying tentative investigations have been carried out. However, until such time as the company is in a position to establish commerciality from its appraisal wells, there is no point in anyone thinking further ahead.
