Ivor Callely
Question:52 Mr. Callely asked the Minister for the Marine and Natural Resources the early indications of oil and gas exploration in offshore waters over the past 12 months; and if he will make a statement on the matter. [3381/01]
Written Answers. - Offshore Exploration.
As I mentioned in my reply of 23 November 2000 to a similar question raised by the Deputy, there are developments in relation to two hydrocarbon discoveries in our offshore, the Corrib gas accumulation 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) Limited and Marathon International Petroleum (Hibernia) Limited, and sought a lease from me for its development. This application 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 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, Enterprise Energy Ireland are reported as saying that the Corrib field might have in place recoverable reserves of more than one trillion cubic feet of gas.
As regards 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 test results have been reviewed in detail over the last few 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 and 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 Resources 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.
Offshore petroleum exploration activity continues with 21 exploration licences in place covering 106 blocks or part blocks. In addition, eight offshore licensing options and two leases are in place. Applications for a further licensing option and three lease undertakings are at present under consideration in my Department.
No exploration wells were drilled offshore Ireland last year.