Brendan Howlin
Question:6 Mr. Howlin asked the Minister for the Marine and Natural Resources his proposals for a new licensing round for petroleum exploration; and if he will make a statement on the matter. [3342/01]
Other Questions. - Oil and Gas Exploration.
Bernard J. Durkan
Question:7 Mr. Durkan asked the Minister for the Marine and Natural Resources if he will report on the most recent findings in respect of oil and gas exploration on and off shore; and if he will make a statement on the matter. [3368/01]
Jack Wall
Question:14 Mr. Wall asked the Minister for the Marine and Natural Resources the latest information available to his Department on the likely extent of test drilling for oil and gas in 2001; and if he will make a statement on the matter. [3357/01]
As they say in the west, "you cannot beat a good Minister of State".
We will say that when we see the £3.4 million.
I propose to take Questions Nos. 6, 7 and 14 together.
In my reply of 23 November last year to similar questions raised in the House I outlined developments on two hydrocarbon discoveries in our offshore, the Corrib gas field and the Helvick oil field. The position regarding the Corrib gas field is that Enterprise Energy Ireland, acting as operator for the development of the Corrib Gas Field, declared it commercial on behalf of its co-venturers, Statoil Exploration (Ireland) Ltd and Marathon International Petroleum (Hibernia) Limited, and sought a lease from me for its development. This is being considered and evaluated by my Department. Enterprise Energy Ireland have plans to bring the gas ashore by October 2003 and expect the field to be in production for about 15 years.
All data and information relating to the field are submitted on an ongoing basis by the company to my Department where it is analysed, using in-house expertise in conjunction with consultants. Deputies will appreciate that all material associated with this assessment is commercially sensitive and, therefore, must remain confidential. However, Enterprise Energy Ireland is reported as saying that the Corrib Field might have in place recoverable reserves of more than one trillion cubic feet of gas.
In relation to the Helvick oil field, the position is that Providence Resources completed an appraisal well on the oil field in the Celtic Sea in September last year. The drilling and tests results have been reviewed in detail in recent months. Although the test results on the well confirmed the good reservoir and oil characteristics seen on the original Helvick oil discovery well in 1983, further detailed analysis has indicated that the Helvick reservoir is much smaller than had been hoped and is highly compartmentalised. Accordingly, Providence Resources has concluded that a stand alone development of Helvick cannot be justified. Following analysis of the data obtained in 2000 my technical advisers have indicated that Helvick is not commercial.
Providence Resources has other interests in the Celtic Sea which include blocks 50/6 & 7, 50/11 and the Ardmore gas prospect. The company has indicated that it remains committed to realising value from its Celtic Sea assets but the fact that Helvick cannot be made commercial has resulted in Providence reviewing its plans for the Celtic Sea as a whole and conducting a strategic appraisal of a number of business development options. My Department is currently in discussion with Providence Resources about restructuring its authorisations in the East Celtic Sea.
As regards drilling, I expect to see a substantial increase in offshore drilling activity this year with at least three exploration wells, one appraisal well and two development wells being drilled. Unfortunately, however, well commitments beyond 2001 only amount to between three and six wells for the entire Irish offshore and there is a possibility that many of the frontier exploration licences issued in previous licensing rounds will be relinquished this year. With this in mind I commenced an initiative aimed at both conserving areas of the Irish offshore by closing them off from development for the moment and gauging interest on the part of the industry in making well commitments in certain other limited areas.
To that end, I have started a consultation process involving companies active here in order to gauge their view on whether well commitments might be forthcoming in the event that a limited number of new licenses might be offered. The question as to whether it would be appropriate to have a further licensing round will be considered in the light of this process.
The Minister was reported in The Irish Times on 14 December as saying that the new round of licensing would hinge on a commitment from the firms. Has that round commenced? If so, what commitment has the Minister received? If it has not commenced, what commitments will he seek from the companies? The Minister issued a statement in January on the Corrib Field and referred to the requirement for a foreshore licence under the Foreshore Act and planning permission being required. At what stages are the application for the licence and the planning permission?
The round has not yet commenced. I have indicated to the industry that I wish to have a response from them on their intentions but, to date, we have only had a general discussion on the matter. I will be happy to inform the House when we progress the matter. As regards the drilling programme for this year, we have authorised the go ahead for drilling in the wells I have outlined. The Deputy mentioned planning permission.
The Minister stated in a background note that planning permission will be required for the submarine pipeline and also that a foreshore licence under the foreshore legislation would be required.
The Deputy is referring to the Corrib field and planning permission will be required. An application for planning permission has been made to Mayo County Council while we will also have to consider an application for a foreshore licence. That application has not come before the Department as yet and the planning application is under consideration.
In relation to the Minister's reply regarding the Corrib field, there is huge anxiety among people and companies interested in this find. The company has not yet commented officially about the commercial aspects of this field; an official announcement has not been made.
That is not correct.
Has the company negotiated with or contacted the Minister concerning the social cost of the pipeline as it is delivered to towns and villages in the west of Ireland as far north as Sligo? What is the company's connection to the distribution of the pipeline? Is the company happy that this is commercial from its point of view? Have there been negotiations with the Government on that matter?
As I said in the press release of 4 January, to which Deputy Bell referred, the company announced in January that this was a commercial find and that it would go ahead with the implementation of its programme to start the work of bringing the gas ashore.
Regarding the distribution of gas throughout the country, the company has entered into an agreement with Bord Gáis Éireann that a pipeline will be laid from Pollatomish to Craughwell which will link in with the ring main. It will be a matter for BGE to distribute the gas from that pipeline and BGE has indicated it is prepared immediately to service towns adjacent to the pipeline: Castlebar, Claremorris, Tuam and possibly Athenry. The allocation of gas to other towns in the west will be the subject of further consideration and will be examined by Government.
A great number of people understand the pipeline is already sanctioned for Sligo.
The pipeline has not been sanctioned for Sligo. I have repeatedly said the further extension of the pipeline to Sligo or any other area has to be considered by Government. I said also that as the Minister representing the west of Ireland I am determined that Sligo and Ballina in particular, and the north west, should be serviced by the gas pipeline and I have urged on my Government colleagues that that should be the case.
That decision has not been taken?
That decision has not been taken yet.
I was very disappointed to hear the Helvick oilfield is not commercial. Is this the first public announcement to that effect which has been made or has it already been described as non-commercial? The Minister said also that the Providence company, which was exploring the Helvick field, has exploratory rights to other areas in the Celtic Sea. Could the Minister have his Department inform me of the location of those areas by way of a map? Also, what is the time scale Providence had to carry out exploratory works in those areas? There is always a limit to the amount of time which can be used for research.
I do not know if this is the first time a public announcement has been made about the field not being commercial. It is the first time I have stated the field was found not to be commercial and I share the Deputy's disappointment that that is the case. Everybody had high hopes, particularly the company, that this would be successful and it is not.
As to the other information, I will provide the Deputy with the details regarding the other areas the company has in the Celtic Sea. There has not yet been a decision as to further exploration in those areas but any information we have regarding time scales we will make available to the Deputy.
Regarding the Minister's press release on 16 January, Marathon and Enterprise Oil notified the Department that the gas find was viable. Will the Minister explain why notification of deadlines for submissions or observations were not advertised in local or national newspapers? Is the deadline set for people to make observations or objections? Will the Minister guarantee that north Mayo residents will get the opportunity to submit observations to his Department about how this project affects them as they are doing with the county council regarding the planning application?
There are statutory procedures pertaining to the application for foreshore licences, including public notices, just as there are with planning applications. Obviously we will adhere to those statutory procedures and we will give ample opportunity to the general public to become aware of any applications made and to comment on them. It is important to ensure that while the public in the area have a chance to look at what is being proposed and to make observations and to discuss objections with Mayo County Council in the first instance, it is equally important that people accept the great advantages that this project offers Mayo and that when the procedure is completed and people have been given answers we are not subject to unnecessary delays in what is a very significant scheme in terms of the future economy of Mayo.
(Dublin West): Does the Minister agree it is time to reverse the shameful sell-out by the Fianna Fáil-Progressive Democrats Government in 1992, when the Corrib field was given to a major multi-national company, Enterprise Oil, with no royalties accruing to the Irish people? It was able to write off taxes against company costs going back to 1984, which meant that for years not a penny in taxation would be gathered. This gas might as well be coming from Timbuctoo for all the good it will do economically to benefit the Irish people. I understand the gas pipeline will be mostly provided by BGE. That kind of huckster's deal might be appropriate for something worked out in the Fianna Fáil tent at the Galway races but it is an utter betrayal of the Irish people. Is it not pathetic that the State is dependent on information supplied to it by these multinationals to assess the extent of what is in the oil and gas fields? Does the Minister agree there should be an independent assessment by the State because it is in the interests of the multinationals to play down the extent of the find? Should we now have learned the lesson—
I remind the Deputy that under Standing Orders supplementary questions are limited to one minute.
(Dublin West): Instead of proposing to privatise the Irish National Petroleum Corporation would it not be better to charge it with a programme of exploration using the immense expertise of workers here who worked abroad on the rigs and let us take control of our own resources for our people rather than hand them lock, stock and barrel to major multinationals?
Has Phillips Petroleum, one of the largest oil exploration companies in the world, been involved or will it be involved in oil exploration off our coast in light of its buying Tosco which is planning to take over INPC?
The company concerned is seeking a petroleum lease, but prior to it getting that, must it not have negotiated with the local people living in the vicinity of the root of the pipeline? How can it make application to the Department when it has not even negotiated with the local people? The Minister is right that this is a wonderful find for the west, but I do not want the people of north Mayo stamped on by multinational companies, the Government, the local county council or anybody else. They have a right to make observations and lodge objections and they must be protected in the same way as foreigners and everyone else who comes into this country. Will the Minister give the local people every opportunity to lodge objections. In the case of all other gas finds here in the past, the gas has been brought up at sea. Could that not be considered in this case, rather than a measure that will affect the lives of many people in north Mayo?
I had a good friend who time and time again put forward the point of view expressed by the Deputy. If it were as good as the Deputy said, we would have many more than only a maximum of six wells in the offshore area where we have commitments beyond 2001. If the Deputy knows of people, be they socialists, capitalists or whatever, who are prepared to invest their money into oil exploration in the wild Atlantic, I will shake their hand and let them off.
(Dublin West): The Minister could set up a company.
The Deputy could accompany such investors to ensure they do not fool anybody. I assure the Deputy no international company, and certainly not Enterprise Energy, is fooling me or my Department.
In my mind and in the mind of Mayo County Council, the people of Mayo are of primary importance. We want them to have their objections and case heard, but we also want to ensure that if their objections do not stand up this project will not be held up. I hope the Deputy, as a public representative for Mayo, will reflect that view in the strongest possible way there. The Deputy can be assured nobody will be walked on will or not have their voices heard.
I am not aware that Phillips is involved in any of the applications before us, as a combination of companies are involved in some of the licences, but I will check that.