Written Answers. - Offshore Exploration.
Willie Penrose
Question:
142
Mr. Penrose
asked the
Minister for Communications, Marine and Natural Resources
his assessment of the prospects of oil and gas exploration in Irish waters during 2003; and if he will make a statement on the matter.
[1817/03]
Bernard J. Durkan
Question:
574
Mr. Durkan
asked the
Minister for Communications, Marine and Natural Resources
the extent of any new exploration in respect of oil, gas or other minerals; if results are available arising from such investigations; and if he will make a statement on the matter.
[2152/03]
I propose to take Questions Nos. 142 and 574 together.
I believe there is justification for optimism in 2003 about petroleum exploration offshore Ireland. Much of the Atlantic margin of our offshore is either untested or under-explored and every effort is being made to promote the exploration of these areas. These efforts face considerable obstacles. Unfortunately, the last 12 months have seen a very steep decline in exploration activity in north-west Europe. In Ireland there are now only seven offshore exploration licences in place – down from a peak of 32 just five years ago. In addition, western offshore areas are difficult to access and explore, in terms of water depth, distance from land and lack of infrastructure. These define both the difficulties and the challenge that face both the government and the industry.
Last November, my colleague in the Department, Deputy John Browne, launched the Porcupine licensing initiative. Its purpose is to re-open the Porcupine region, closed since 1999, for exploration. The region will be opened for licensing in four tranches as it covers a large area, 241 full blocks. There have been some wells drilled there in the past but it still has real exploration potential.
The results from the Dooish well which was drilled off Donegal last year by Enterprise Energy Ireland also gives grounds for optimism. It is expected that the company will carry out further appraisal of the well this year. My Department has long held that there was real exploration potential within these frontier areas and these results further vindicate this view. It is also likely that a further exploration well will be drilled in the Slyne-Erris Basin in 2003 under a licence commitment.
Within the last 15 months, two leases, for the Corrib gas field and the Seven Heads gas accumulation, have been signed. Production from Seven Heads is set to commence later this year and production from Corrib will depend on the outcome of the recent hearing by An Bord Pleanála. In addition, there will be a development of the Greensand in the Kinsale gas field. Last November, Marathon submitted a plan of development for its south-west Kinsale Greensand development project for my approval. This is directed at accessing gas reserves that were not being drained effectively by the existing Kinsale gas field wells. Drilling at Greensand will commence in March-April of this year. The target date for gas production is expected to be the following July.
With regard to non-petroleum minerals no new economic deposits have been discovered in recent years. There have been some encouraging results, however. Exploration adjacent to existing base metal mines at Navan, County Meath, Tara Mines Limited, and Galmoy, County Kilkenny, Arcon Mines Limited, has discovered additional resources which have the potential to extend the life of those mines. A good zinc prospect area near Pallas Green, County Limerick, also has the potential to host an economic deposit and drilling is continuing. The acid test of commerciality with any new discovery is that having made a find the explorationist is then prepared to invest in planning for mining and so makes the necessary applications for permits to me, to the relevant county council and to the EPA. New exploration is continuously undertaken as part of my requirements to holders of prospecting licences, of which there were 348 current at the end of December 2002.
