Written Answers. - Exploration Projects.
Bernard J. Durkan
Question:
30
Mr. Durkan
asked the
Minister for the Marine and Natural Resources
if he has satisfied himself that sufficient oil and mineral exploration projects are ongoing at the present time both on and offshore with a view to maximising positive results at an early stage; and if he will make a statement on the matter.
[26980/00]
There are developments in relation to two hydrocarbon discoveries in our offshore, the Corrib gas accumulation and the Helvick oil field.
Enterprise Energy Ireland Limited completed a fourth appraisal well in the Corrib gas field in September. The company and their partners are currently assessing the results from this well in conjunction with data from previous appraisal wells with a view to determining the extent and characteristics of the reservoir.
EEIL are of the view that the Corrib field might have in place recoverable reserves of more than one trillion cubic feet of gas. This compares to over 1.5 trillion cubic feet of gas produced to date from the Kinsale and Ballycotton gas fields. However, it is too early at this stage to give a precise figure for the size of the gas accumulation and the licensees will not be in a position to do so until they have fully evaluated the discovery. I expect Enterprise Energy Ireland and their partners to be in a position to decide on the commerciality of the Corrib field in the very near future.
In relation to the Helvick oil field, Providence Resources completed an appraisal well last September. The operator is currently analysing the data acquired in the course of the appraisal drilling. The results will be integrated with existing knowledge about the field in order to establish a soundly based estimate of the hydrocarbons in place and the potential recoverable resources. All the data and information relating to the appraisal drilling have been submitted by the company to my Department. The Deputy will appreciate that all material associated with the assessment of the field is commercially sensitive and therefore must remain confidential.
Offshore petroleum exploration activity continues with 21 exploration licences in place covering 106 blocks or part blocks. In addition there are eight offshore licensing options and two leases in place. Applications for two further licensing options and two lease undertakings are at present under consideration in my Department.
In addition to the above, next year will see a substantial increase in offshore drilling activity. While no firm proposals have as yet been received in my Department it is anticipated that up to five exploration wells, one appraisal well and two development wells will be drilled.
As regards non-petroleum minerals I am pleased with the current level of exploration. Indeed it is gratifying that we have not only maintained, but increased in real terms, our share of world exploration funding in the context of a major global cutback over the past three years. The most recent report that I laid before the Houses under the Minerals Development Acts showed that at the end of June 2000 there were 486 prospecting licences being operated. The number of licences has increased over the last three years.
The State itself does not carry out prospecting. In setting and agreeing the exploration programme under any licence, I ensure that the licence is awarded to the candidate proposing the most advantageous programme. By monitoring the reports of licence holders and site visits, I ensure that the terms of the commitment are met in each case and that there is a suitably aggressive pursuit of any positive results.
As part of our ongoing efforts to ensure the attractiveness of Ireland, my Department is at present carrying out a comparative study of international royalty and tax regimes. The results of that study will inform policy decisions in the future and allow us to maintain our competitive status.
