Derek McDowell
Question:66 Mr. McDowell asked the Minister for the Marine and Natural Resources his proposals for a review of the 1992 terms granted to oil and gas exploration companies; and if he will make a statement on the matter. [12795/01]
Written Answers - Offshore Exploration.
Joe Higgins
Question:115 Mr. Higgins (Dublin West) asked the Minister for the Marine and Natural Resources if he will expand on his recent remarks that he would review the 1992 exploration terms awarded to oil and gas companies if there is a successful outcome to the oil drilling programme in 2001. [12907/01]
I propose to take Question Nos. 66 and 115 together.
The current licensing terms were very carefully designed and introduced in 1992 to compensate for Ireland's disadvantage in terms of perceived prospectivity and operating conditions and to encourage interest in exploration and development. Only two exploration wells have been drilled in the Irish offshore in the last three years, despite the existence of the 1992 terms and there are 20 offshore exploration licences in place at present compared to a peak of 32 in 1997. Furthermore, a number of exploration companies granted licences under a licensing round in 1997 have indicated their intention to relinquish these licences this year.
The fact remains that Irish prospectivity is low and is not comparable with our oil producing neighbours. We have only had three successful exploration wells out of 123 wells in 30 years while over the same period the United Kingdom has drilled about 3,000 wells of which about 250 are in production. In the light of these factors, it is premature to consider changing our terms and, though I intend to keep them under continuing review, such a debate at this time is not justified by our record of prospectivity. It would send the wrong signals to the industry at a time when we need to encourage an increase in the level of exploration. There is, of course, no question of amending the application of the terms in respect of exploration licences already issued.