Dáil Éireann debate -
Tuesday, 8 May 2001

Vol. 535 No. 4

Written Answers - Offshore Exploration.

Bernard J. Durkan

Question:

62 Mr. Durkan asked the Minister for the Marine and Natural Resources the results in respect of oil or gas explorations, on or offshore; the prospects for the future in this regard; and if he will make a statement on the matter. [12808/01]

Minister for the Marine and Natural Resources (Mr. Fahey)

As I mentioned in a reply on 20 March to a similar question raised by the Deputy, there were developments in relation to the Corrib gas accumulation. Enterprise Energy Ireland declared the Corrib gas field commercial in January this year, on behalf of its co-venturers Statoil and Marathon, and have applied to me for a lease for its development which my Department is at present considering and evaluating.

Enterprise Energy Ireland has plans to bring the gas ashore by October 2003 and expects the field to be in production for about 15 years. There will be a substantial increase this year in offshore drilling activity with up to five exploration wells, one appraisal well and two development wells being drilled. Enterprise Energy Ireland Limited recently drilled an exploration well in the Rockall Trough which has now been plugged and abandoned. Exploration wells will also be drilled by Statoil and EDC in the Porcupine and Fastnet basins respectively. Subject to availability of a drilling rig, Ramco Oil and Gas also proposes to drill one or two exploration wells in the Celtic Sea. Enterprise Energy Ireland Limited also proposes to drill a further appraisal well in the Corrib gas field and two development wells will be drilled by Marathon in the south-west Kinsale area.

However, well commitments beyond 2001 only amount to between three and six for the entire Irish offshore. In addition, the number of offshore exploration licences has fallen to 20 compared to a peak of 32 in 1997 while a number of exploration companies granted licences under the 1997 licensing round have indicated their intention to relinquish these licences this year. As regards the onshore, the position is that two licensing options are currently held over parts of the north-west Carboniferous Basin. The licensed area comprises lands in Counties Sligo, Leitrim, Roscommon, Cavan and Monaghan, and I understand that there is likely to be an application to drill at least one well in this area in the near future.

Michael D. Higgins

Question:

63 Mr. M. Higgins asked the Minister for the Marine and Natural Resources the progress made in his discussions with oil and gas exploration companies regarding greater use of Irish labour; if his attention has been drawn to claims that exploration companies are refusing to employ Irish workers; if he has raised this claim with the companies; and if he will make a statement on the matter. [12796/01]

Minister for the Marine and Natural Resources (Mr. Fahey)

My predecessor, Deputy Woods, initiated discussions between representatives of the Irish Offshore Operators Association, the Irish Congress of Trade Unions, Enterprise Ireland and the Irish Offshore Suppliers Association on the utilisation of Irish resources and services in the offshore petroleum industry. These discussions are chaired by my Department and are ongoing.

Exploration and production companies employ Irish workers in offshore exploration and development, particularly in the Kinsale gas field. I have continually impressed on the Irish Offshore Operators Association and the individual operators that Irish workers and suppliers of goods and services, including service ports, must be given opportunities to participate fully in such activities and I will continue to do so. In an address to the Institute of Petroleum last November I made it clear that the Government does not expect the industry to avail of Irish goods, services or employment where these are clearly not competitive but it does expect the industry to encourage and facilitate potential Irish suppliers to compete for the services required. This should be done in partnership with State agencies and should be seen as part of the industry's commitment to Ireland, within a long-term commercial and marketing framework.

Any company operating in Ireland for the long term should see that it is in its own best commercial interest to build strong links into the Irish economy and to demonstrate a significant economic and social dividend both at regional and national level. The discussions being facilitated by my Department, IOOA and FÁS, in consultation with SIPTU, have established a procedure to identify suitably qualified personnel who wished to be considered for any specific vacancies for work both in the development of the Corrib field and in the Irish offshore. This procedure was advertised recently by FÁS in the national press and 83 applications were received, including 38 seeking work on rigs. Of these, 30 applicants, and a further 30 who had not applied but who showed up at the interviews, were interviewed by Transocean-Sedco-Forex, rig contractors, in Cork and Limerick in March. Offers of employment have been made to 38 personnel, who are both experienced and trained, and of these 34 have accepted and are undergoing induction training in Cork.

In addition, Enterprise Ireland has the co-operation of the Irish Offshore Operators Association and individual operators to ensure that there is early notification of future offshore work to potential Irish suppliers. I am glad to say that the Irish Offshore Operators Association is committed to fully support these opportunities and I understand that both Irish and Norwegian contractors are having difficulty finding qualified and available seagoing personnel for standby-supply vessels, nevertheless, the sole available Irish contractor has obtained about one third of the available business.