Vol. 557 No. 4
295 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the most recent positive result and pending results, in respect of on and offshore oil, gas and/ or other mineral explorations; and if he will make a statement on the matter. [22587/02]
300 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which oil, gas and or other mineral explorations are showing positive indications; if new explorations are planned; and if he will make a statement on the matter. [22592/02]
I propose to take Questions Nos. 295 and 300 together.
There are improvements in the area of offshore petroleum developments. I granted Enterprise Energy Ireland, EEI, and its co-venturers Statoil and Marathon, a petroleum lease for the Corrib gas field on 15 November 2001. I subsequently issued all the necessary statutory approvals and consents for the development of the field. The development is at present on hold pending the determination by An Bord Pleanála of the planning appeal in relation to the terminal for the gas field. The oral hearing in the appeal resumes on 25 November 2002. The target date for first gas is early 2005.
Last week saw the issue of the second petroleum lease under the 1992 terms to Ramco Seven Heads Limited and its partners. The Seven Heads Group expect to submit a plan of development shortly with a target of first gas for late 2003. Marathon propose to drill a further well next year to access gas that was not being drained effectively by the existing wells.
In short, the State is moving from being more than 80% dependent on gas imports to a situation over the next few years in which the indigenous sector will supply the bulk of its requirements. Unfortunately, the past year has seen a very steep decline in exploration activity. Exploration licences have declined from 32 in 1998 to seven at present and there is a commitment for only one further exploration well in 2003. However, I am assured that although these areas off the west coast are not easy, with all the problems associated with frontier areas, there is considerable untested prospectivity there. This is evidenced by the very encouraging news from Enterprise Energy Ireland's Dooish well off Donegal. The well penetrated a substantial column of hydrocarbons. However, before the nature and size of the accumulation or the possibility for any commercial development can be assessed – it is in nearly 1,500 metres of water – a considerable amount of analysis of existing data together with much further appraisal work will be required. It is expected that appraisal operations will resume at the earliest possible opportunity during the drilling season next year.
Given the serious decline in exploration, my concern to get ongoing exploration activity to the highest extent possible, has prompted the Porcupine Basin licensing initiative, announced a few weeks ago. On 6 November I published a notice setting out details of the licensing process to be followed in the initiative. The area comprises the entire Porcupine Basin – excluding the two areas currently licensed – split into four tranches, based on a detailed technical evaluation of the basin's prospectivity carried out by the petroleum affairs division, PAD.
